Gunsynd (GUN) has entered into a legally binding property purchase agreement with Peter Dunlop to acquire additional acreage to expand of the Barb gold project in Manitoba, Canada. 

The company aims to acquire the historic Lotus mine, along with the Denver and Betty shafts which are adjacent to ground already held by Gunsynd at Barb.

The consideration is C$250,000 plus the payment of nearly 12 million shares to a third party associated with the transaction.

These properties are loccated in the southern part of the Barb project, close to the Wanipigow fault which acts as a principal control on orogenic gold in the 90 kilometre long Rice Lake greenstone belt.  

Historical grades at Lotus and Denver have been significantly higher than assay results previously announced by Gunsynd.

Back in 1980, at Lotus 1 and 2, Esso Resources hit 213 grams per tonne gold over 0.3 metres and 99 grams per tonne over 0.75 metres in a diamond drill campaign that indicated the presence of at least four gold shoots along the 365 metres strike length of a vein system. The average uncut grade of the shoots was 17 grams per tonne gold. 

At Denver, a sampling programme conducted in the 1990s produced about 17 grams per tonne gold average grade per sample, and a field campaign conducted in 2014 by JOVG Resources delivered assay results of an average of 94.68 grams, with the highest grade running at 221 grams. 

At Brook (also known as Betty), the grab samples assayed 3.4 grams per tonne gold, although the project was never drilled.

Gunsynd will also grant the vendor a 2.5% net smelter royalty payable over the claims. Up to sixty percent of which may be repurchased at any time for C$1,500,000 to reduce the NSR to 1.0%.

Separately, Gunsynd has also issued 50 million new shares to the Gunsynd Employee Benefit Trust at a price of 0.085p, following a subscription by the trustee of the EBT, LGL Trustees Jersey, at an aggregate cost to the company of £42,500. Following admission of the EBT Shares, the EBT will hold 140 million shares in Gunsynd, representing approximately 8.79% of the enlarged issued share capital of the company.

 

View from Vox

Good to see Gunsynd enhancing the prospectivity of Barb, which already looks good in its own right. The transaction terms aren’t onerous, and if there was ever a good time to be expanding a company’s gold holdings, it’s now. Gunsynd has been very active over the past several months, and if the company keeps up the current pace, market interest ought to remain robust.