gun tenement next door to mox

Researched this on w/e,and posted yesterday

Possible that GUN tenements could repeat this Cu action for Xstrata

"In Jan this year, GUN which owns the tenement 19km East of Carrapateena drilled 2 holes at its Chianti prospect, and found guess what ; altered haematitic granite of probable Hiltabi age , similar to MOX, Carrapateena and Olympic Dam. Their drill result showed 6m between 541-547m @1.4% CU with 2m of this @3.4%Cu. Traces of Bornite was also found in another percussive drill hole 400 m away. So is it possible that this anomaly could be related to the same ore body as found at Carrapateena, Punt Hill???? etc. At this time GUN rose to 42c but has subsequently dropped back to 29c.

To test this possibility, GUN farmed out further drilling to Noranda who were supposed to drill earlier this year, but after Noranda/ Falconbridge were taken over by the Swiss behemoth Xstrata mid-year, things changed, and a new agreement was signed with Xstrata,. (51% of project in return for $3M drilling ovr several years) who are now almost ready to start. (some say before the end of the year)

GUN was originally a mineral sands play only, with DFS 80% complete, EPA approvals given, some off- take secured etc, but IMHO is now also a serious copper play.. GUN is currently trading at 29c, has $30M market cap & approx 100M shares fully diluted. Doesn’t have the leverage of MOX but you still get plenty of bang for your buck if Xstrata finds anything!

Now the interesting bit. When Noranda initially looked at the data they found what looked to be a 7km x 4km gravity anomaly at Chianti just to the east of the 2 drill holes by GUN. This is what Xstrata will be testing, and if they are right then something substantial could be found. (were the original 2 GUN holes on the edge of it?)

So is GUN worth a Punt (sorry about the pun) given that it has this Cu exploration exposure as well as Mineral Sands. That’s for you to decide. I think it is, so I added to my holdings yeserday at 30.5c. At this price I do not believe that the market is factoring in any upside for its copper prospects. Could the MOX scenario be repeated here?

No-one seems interested in GUN at the moment. HAV rose 9% on back of its 10% MOX holding, and I expect that as GUN's drilling program nears (hopefully before Christmas), its sp will head north

This area just has to be about the hottest Cu territory in Oz at present

As always DYOR

PS Send us your address RT and I'l slip you a couple of bucks. You have attained legend status in MOX folklore in my opinion, and its a shame you wern't there to collect