(Sharecast News) - Gunsynd announced a positive operational update from its ASX-listed investee company Charger Metals on Tuesday, which explores for lithium and base metals with a focus on Australia.
The AIM-traded firm said Charger had received the required mine management plan (MMP) and Aboriginal Areas Protection Authority (AAPA) certificate approvals to enable it to make final drill preparations at its Bynoe Project in the country's Northern Territory.
It said the provision of vehicle access tracks to drill sites was the immediate priority, with discussions with drilling contractors over rig start dates taking place.
Charger was aiming to drill as many holes at the Bynoe Lithium Project in the current quarter as weather would permit.
Gunsynd said the Bynoe project was one of the principal assets in Charger's portfolio of exploration assets, and was one of the main reasons for its investment decision when it made its first investment in November 2020.
The board said Bynoe is located around 35 kilometres south west of the territory's capital Darwin, with "excellent access" via sealed roads and with nearby infrastructure.
It said it was enclosed by Core Lithium's Finniss Lithium Project, which has a mineral resource of 18.9 million tonnes at 1.32% lithium oxide.
Core Lithium, which has an approximate AUD 2.6bn (£1.47bn) market capitalisation, had started construction and mining at Finniss, and announced that the sale of direct shipping spodumene ore would begin in the December quarter.
Gunsynd said Core Lithium was constructing its lithium processing plant seven kilometres north of Charger's Bynoe project.
The company had announced on 20 September that it participated in the Charger capital raise of AUD 5.5m, consisting of 11 million shares at 50 Australian cents each, supported by existing and new investors.
"The Bynoe project has the potential to unlock enormous value via the maiden drill programme that has been until now held up via regulatory heritage approval process," said Gunsynd director Peter Ruse.
"Charger has two large priority targets in Megabucks and 7-up zones that will be explored via this drilling campaign over the current quarter."
At 1147 GMT, shares in Gunsynd were up 12.47% at 0.45p.
Reporting by Josh White for Sharecast.com.
Gunsynd (GUN)