Shallow High-Grade Gold at Liontown Could Accelerate Sunshine Metals’ Mining Plans

High-Grade Gold Intersections Confirm Strategy

Sunshine Metals Limited (ASX, SHN) has announced outstanding results from its recent reverse circulation drilling program at the Liontown prospect, part of the Ravenswood Consolidated Project in North Queensland. The standout intercept of 10 metres grading 31.91 grams per tonne (g/t) gold from just 41 metres depth, including a remarkable 2 metres at 121.5 g/t, underscores the potential of shallow oxide gold mineralisation.

This drilling campaign, designed to infill and tighten drill spacing across the oxide and transitional resource zones, has returned assays for 16 of 29 holes drilled, covering 1,834 metres. Other notable intersections include 9 metres at 6.31 g/t gold from surface and multiple intervals exceeding 2 g/t gold at shallow depths, reinforcing the prospect’s high-grade nature.

Resource Upgrade and Metallurgical Testing on the Horizon

The current Liontown inferred resource stands at approximately 21,000 ounces of gold and 307,000 ounces of silver at grades of 1.8 g/t gold and 26 g/t silver. Sunshine Metals aims to upgrade this resource to indicated status through ongoing metallurgical test work and the completion of the drilling program. This classification upgrade is critical for advancing the project towards mining feasibility.

Managing Director Dr Damien Keys described the results as a “Back to the Future” moment, recalling Liontown’s early 20th-century mining history where high-grade gold was first extracted. The recent drilling confirms that significant high-grade mineralisation remains near surface, validating Sunshine’s strategy to focus on shallow oxide gold deposits that could be processed efficiently at nearby toll treatment facilities.

Fast-Tracked Mining Studies and Broader Exploration Plans

Following the resource upgrade and metallurgical analysis, Sunshine plans to accelerate open-pit mining studies. The company is also progressing a busy exploration schedule across its broader portfolio, including targets at Salla, Plateau, Mt Pleasant, Coronation, and the newly acquired Sybil epithermal gold system. These activities are supported by recent Queensland government grants under the Collaborative Exploration Incentive program, which provide nearly $400,000 in funding.

Historical mining voids intersected during drilling have been modelled and will be refined to improve resource confidence. Sunshine’s approach to targeting shallow, high-grade oxide gold resources aligns well with current elevated gold prices, aiming to rapidly unlock value from these assets.

Outlook and Strategic Positioning

Sunshine Metals’ Liontown results mark a significant milestone in the company’s development pathway. The combination of high-grade shallow mineralisation, ongoing resource upgrades, and a clear plan to fast-track mining studies positions the company to potentially deliver near-term production opportunities. Meanwhile, the broader Ravenswood Consolidated Project continues to offer substantial upside with its polymetallic volcanogenic massive sulphide (VMS) resources and emerging gold targets.