Sunshine Metals Reports 30m @ 0.58g/t Au at Tigertown, Raises $3M

Exploration Momentum Builds at Ravenswood

Sunshine Metals Ltd (ASX: SHN) has reported a productive quarter ending 31 March 2025, advancing its flagship Ravenswood Consolidated Project in Queensland. Nestled within a prolific mining district that has historically yielded over 20 million ounces of gold and 14 million tonnes of volcanic massive sulphide ore, the project continues to reveal promising shallow oxide gold targets alongside emerging gold-copper sulphide prospects.

The company’s recent reverse circulation (RC) drilling at multiple prospects, including Liontown, Plateau, Tigertown, and Coronation, has delivered encouraging results. Notably, the Tigertown drilling intersected broad, veined intervals with significant gold and silver grades, such as 30 meters at 0.58 g/t gold and 57 g/t silver, including higher-grade zones with zinc and lead mineralisation. These findings validate Sunshine’s strategy to target near-surface oxide mineralisation amenable to low capital expenditure (CAPEX) production.

New Targets and Resource Development

At Coronation, Sunshine has defined a compelling Highway Reward-style gold-copper target following a detailed induced polarisation geophysical survey. The anomaly, coincident with a strong chargeable response and a 1-kilometer-long gold soil anomaly, suggests a significant sulphide accumulation. Early drilling has intersected shallow gold mineralisation, with further RC drilling underway to test extensions and inform deeper sulphide exploration.

Meanwhile, the Liontown and Plateau prospects remain central to Sunshine’s near-term development plans. Both targets host oxide gold resources within 50 meters of surface, with Liontown’s inferred resource standing at 360,000 tonnes at 1.8 g/t gold and 26 g/t silver, and Plateau’s inferred resource at 230,000 tonnes at 2.0 g/t gold. Upcoming drilling campaigns aim to upgrade these resources from inferred to indicated status, supported by metallurgical testing and mining studies scheduled for mid-2025.

Capital Raising and Corporate Efficiency

To underpin its exploration and development activities, Sunshine Metals secured commitments for a $3.0 million placement at $0.006 per share, with Lion Selection Group Limited contributing $0.5 million. The placement includes attaching unlisted options exercisable at $0.015, expiring two years from issue. The company completed the first tranche of this placement and is seeking shareholder approval for the second tranche and related options at a general meeting slated for 20 May 2025.

In a bid to improve operational efficiency, Sunshine relocated its registered office and principal place of business to North Ward, Queensland, achieving approximately 25% cost savings. The company ended the quarter with around $1.0 million in cash, expected to rise to $4.0 million post-placement, providing a solid financial footing for upcoming exploration milestones.

Outlook and Strategic Focus

Sunshine Metals is positioning itself to capitalise on the high-grade potential of its Ravenswood assets by focusing on shallow oxide gold resources that could be rapidly developed with low CAPEX. The company’s methodical approach to resource upgrades, combined with promising drill results and new target generation, suggests a pathway towards near-term cash flow generation.

While no Ore Reserves have yet been declared, the extensive Mineral Resource inventory, including 7 million tonnes at 4.0 g/t gold equivalent, underpins the project’s substantial upside. The coming months will be critical as Sunshine delivers drilling results from Liontown and Plateau, advances metallurgical studies, and initiates mining studies, all of which will shape the project’s development trajectory.