Some people have asked me last week what I think of Gunsynd Plc and their Rincon deal. I know the potential of Rincon well. Probably better than most.
Their Hasties tenement that lies only 12km south of the massive 27 million ounces Telfer Mine in Western Australia has a lot of early Newcrest drilling that picked up some very good gold results (some almost from the surface). The geology is still a bit complex and some think a lot of the previous drilling was drilling in the wrong direction. That old chestnut!
But I think some modern geological re-interpretation can come up with a geological picture that may deliver something that could excite the market. And really excite the market it may.
Gunsynd (GUN.L) Thoroughbred Mining Investments
But the Ricon project that I really rate is their Westin Project because it’s not too far away (15km SW) from the gigantic new Havieron gold discovery (currently being drilled by Newcrest / Greatland Gold). Its a very big tenement package. And there IS gold there. Another Newcrest old drilling programme where they walked away. Newcrest walked away from Havieron, even they did hit the top of the Havieron orebody.
Havieron/Westin was drilled around the same time as Newcrest, but Newcrest cancelled all regional exploration for some strange reason at the time and gold intersections of note were never followed up. Until now!
The topsoil cover at Rincon’s Westin should be a whole lot shallower than Havieron and there is one very good drill intersection in Westin that I know of at about 80m depth that tells me there is a lot of fire potential around the Westin smoke.
As a whole, The Rincon leases are now the only big lease package in the Telfer / Havieron area not sitting in a public listed company. That’s amazing in itself, especially considering the multitude of JV’s, earn-ins and acquisitions within a 100km radius of Telfer.
Importantly, no one knows how many other Havierons and Telfers there now are in this new gold province. My guess is a hell of a lot more monster Gold/Copper and I’ll say it here now maybe even Cobalt projects exist in the Patersons Ranges. Havieron has created a new geological model with its discovery and the majors are still trying to understand this new model.
Artemis (which I know very well) have over a dozen targets within 20km to the north, east and south of Havieron, with very interesting gravity and magnetic signatures. Artemis start drilling some of their priority Havieron style targets within weeks. I really hope they hit something.
So, with Gunsynd owning something like 28% of Rincon, WOW! Gunsynd is also Rincon’s biggest shareholder. Rincon plans to list on the ASX in the coming months. A good and positive listing of Rincon on the ASX could be a big boost for GUN.
In the meantime, there will be more and more news releases on Havieron’s bulging size and a maiden JORC resource in Q4 this year (so Newcrest have said). And this resource will no doubt be massive. A gold find of a generation in Australia I say. So the more good news that swings out of Havieron, the more people will be looking at Gunsynd and Artemis.
Here are some of the old Newcrest drilling results on Rincon’s ground:
o 57.80m @ 2.05g/t Au from 17.40m
o 16.10m @ 4.75g/t Au from 42.70m;
o 68.00m @ 1.33g/t Au from 1.00m;
o 36.00m @ 1.66g/t Au from 2.00m;
o 33.20m @ 1.46g/t Au from 25.00m;
o 23.00m @ 2.06g/t Au from 23.00m;
o 5.00m @ 3.73g/t Au from 50.00m.
o 20.60m @ 1.23% Cu from 87.60m;
o 10.90m @ 3.39% Cu from 91.80m;
o 4.00m @ 4.84% Cu from 49.00m.
Time will tell.
I don’t see a lot of downsides IMHO on Gunsynd in the short to medium term unless the gold price falls out of bed.
But do your own research folk. Don’t take my word for it. I may have got this all wrong.
(The opinions expressed here are those of the author, a columnist for Share Talk.)
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