Sunshine Metals Faces Exploration Risk as Key Assay Results and Surveys Loom

Queensland Government Backs Sunshine Metals

Sunshine Metals Limited (ASX: SHN) has been awarded two significant Collaborative Exploration Incentive (CEI) grants by the Queensland government, totaling $393,795. These grants aim to support innovative exploration efforts at the company’s Ravenswood Consolidated Project, a highly prospective mineral district in Queensland known for its gold and base metal potential.

The first grant, amounting to $162,157, will fund a 650-metre diamond drill hole at Liontown North. This drilling is designed to test a newly interpreted geological fold in the stratigraphic horizon, which has revealed a previously untested 3-kilometre stretch of prospective contact zone exhibiting coincident induced polarisation (IP), electromagnetic (EM), and geochemical anomalies. This represents the first diamond drilling on the northern contact and is expected to refine targeting models for potential extensions to the existing 6 million tonnes at 3.6 grams per tonne gold equivalent resource.

Exploring Copper-Gold Potential in Coronation

The second grant, valued at $231,638, will finance an 840 line-kilometre airborne VTEM Max electromagnetic survey over a 74 square kilometre area in the Coronation region. This survey aims to detect semi-massive to massive copper-gold volcanogenic massive sulphide (VMS) systems analogous to the nearby Highway-Reward mine, which historically produced 3.9 million tonnes at 5.3% copper and 1.1 grams per tonne gold. The survey will help refine drill targets across multiple prospects including Truncheon, Highway East, Coronation, and Coronation South.

Ongoing Drilling and Upcoming Milestones

In addition to the CEI-funded programs, Sunshine Metals plans to commence reverse circulation (RC) drilling at the Salla and Plateau targets in early June 2025. The company has recently completed 29 holes totaling 1,834 metres of oxide gold drilling at Liontown, with assay results expected by late May 2025. These results will feed into metallurgical test work and a resource upgrade scheduled for July, alongside a mining study at Liontown.

Managing Director Dr Damien Keys expressed gratitude for the government’s support, highlighting the strategic importance of Liontown within Queensland’s critical mineral inventory and the quality of Sunshine’s exploration work. The grants provide a timely boost to Sunshine’s exploration momentum, enabling parallel programs that target both shallow gold and deeper copper-gold mineralisation.

Strategic Implications for Sunshine Metals

Sunshine’s Ravenswood Consolidated Project encompasses a diverse portfolio of mineralisation styles, including gold-rich footwall zones and VMS base metal deposits. The company’s innovative geological interpretations, such as the fold closure at Liontown North, could unlock new resource extensions. Meanwhile, the airborne EM survey in Coronation leverages proven exploration techniques that led to the discovery of significant copper-gold deposits nearby.

With multiple drilling campaigns and geophysical surveys underway, Sunshine Metals is positioning itself to significantly advance resource definition and project economics in a district with a rich mining history. The integration of new data from these programs will be critical in shaping the company’s development pathway over the coming months.