Rincon Resources Pty Ltd – Operational and Corporate update
Gunsynd Plc (AIM: GUN, AQSE: GUN) is pleased to announce an update on its investment in Rincon Resources Pty Ltd (“Rincon”), an Australian gold and base metals exploration company. Gunsynd had previously announced in June 2020 that it had invested AUD$250,000 (approximately GBP138,000) in Rincon representing approximately 28% of the issued share capital of Rincon at the time.
The board of Rincon has now provided an update to its shareholders relating to operations across its three project areas in Western Australia, and a corporate update detailing its plans to list on the Australian Securities Exchange (ASX).
Operational update
South Telfer project – During the last twelve months, Rincon has been preparing for field activities at its South Telfer project, which includes completing Native Title Agreements, commencing Heritage clearances and the acquisition of regional magnetics data previously acquired by Newcrest Mining Ltd (Newcrest) in the late 1990’s for South Telfer.
The regional magnetics data for South Telfer was acquired from Southern Geoscience Consultants Limited (SGC). Survey data was processed, interpreted and target generation undertaken by Resource Potentials Pty Ltd, and final results are expected during September. Leapfrog models have also been refined for South Telfer over the Hasties prospect and work programs and budgets are being finalised.
Rincon is aiming to commence a trial of Ultrafine soil sampling over selected targets in the next 6 to 8 weeks. In addition, a detailed structural mapping program will be conducted over the outcropping Hasties gold and copper mineralisation. Rincon is working to be “drill ready”, a drilling Program of Works (PoW) has been approved by the Department of Mines, Industry Regulation and Safety and the final step required to allow drilling to commence is Native Title and Heritage clearances over areas of proposed ground disturbing works.
Laverton project – Rincon has completed the acquisition, processing and interpretation of a high-resolution magnetics dataset over the project area and also recently completed trial geochemical survey at its Laverton project. Rincon is planning to roll out the geochemical program over a wider area in the coming months, with a view to defining air core drill targets for a drill program targeting commencement in Q4 of CY2020. Exploration at the Laverton project can be carried out year-round which provides for a highly complementary second asset to the South Telfer project.
Kiwirrkurra Project – Target generation is planned for the Kiwirrkurra project, commencing with an initial historical geophysical data review.
Corporate update and proposed Initial Public Offering (IPO) on ASX:·
Two Australian stockbroking and equity capital market firms have been engaged to conduct the IPO – PAC Partners Securities Pty Ltd and Ironside Capital Limited Pty Ltd will act as Joint lead managers.
· The final valuation being subject to market conditions at the time of the IPO capital raising.
· Rincon and its advisers are working towards an ASX IPO and a further update will be made once timing becomes clearer.
Peter Ruse, Gunsynd PLC Director, commented: “Gunsynd is excited to update shareholders on its investment in Rincon. We are delighted with Rincon’s decision to engage PAC Partners Securities Pty Ltd and Ironside Capital Limited Pty to lead the proposed IPO on ASX. We look forward to supporting Rincon, where possible, in the future as it continues its progress to delineate fieldwork programs at South Telfer, Laverton and Kiwirrkurra.”
About Rincon Resources
Rincon Resources is a Western Australian (“WA”) focused gold and base metals exploration company. It currently holds the rights to three highly prospective projects in WA, the most significant of which, South Telfer, a 50,000-hectare project in the Paterson province, is approximately 12km south from Newcrest Limited’s Telfer mine. The two others are highly prospective copper-gold projects – Laverton and Kiwirrkurra.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
The Directors of Gunsynd accept responsibility for this announcement.
