Sunshine Metals Uncovers More Shallow High-Grade Gold at Liontown
Sunshine Metals has reported further shallow, high-grade gold intersections at its Liontown prospect, advancing plans for a resource upgrade and mining studies. The latest drilling results reinforce the company’s strategy to rapidly develop oxide gold resources near surface.
- Completion of 29-hole RC drilling program at Liontown
- Significant shallow gold and silver assay results from final 13 holes
- Existing shallow Inferred Resource targeted for upgrade to Indicated status
- Metallurgical testing and mining studies to commence imminently
- Drilling at Salla and Plateau targets completed; results expected July 2025
Further High-Grade Gold Intersections at Liontown
Sunshine Metals Limited (ASX – SHN) has announced encouraging results from the final batch of assays in its recent reverse circulation (RC) drilling campaign at the Liontown prospect, part of the Ravenswood Consolidated Project in North Queensland. The company completed 29 holes totaling 1,834 metres, focusing on shallow oxide gold mineralisation within 50 metres of surface.
The latest assay results from 13 holes confirm multiple high-grade gold and silver intersections close to surface, including standout intervals such as 3 metres at 22.82 grams per tonne (g/t) gold and 351 g/t silver from 13 metres depth, and 5 metres at 4.67 g/t gold and an exceptional 481 g/t silver from 6 metres. These results complement previously reported high-grade intercepts, reinforcing the prospect’s potential.
Advancing Resource Classification and Metallurgical Studies
The current shallow oxide and transitional Inferred Resource at Liontown stands at approximately 360,000 tonnes grading 1.8 g/t gold and 26 g/t silver, equating to 21,000 ounces of gold and 307,000 ounces of silver. Sunshine’s drilling program has tightened drill spacing to around 25 by 25 metres, a critical step towards upgrading this resource to Indicated status. This upgrade is contingent on metallurgical test work, which is now set to commence using samples collected during drilling.
Managing Director Dr Damien Keys emphasised the significance of these results, stating that Liontown continues to deliver "fantastic gold grades close to the surface." He highlighted the company’s focus on progressing metallurgical studies, updating the resource estimate, and initiating mining studies promptly to accelerate project development.
Complementary Targets and Upcoming Milestones
Beyond Liontown, Sunshine Metals has completed drilling at the Salla gold-copper-zinc and Plateau gold targets, with assay results expected in early July 2025. The Plateau target already hosts an Inferred Resource of 49,000 ounces at 2.0 g/t gold, and Sunshine is earning into this project through a farm-in agreement with Rockfire Resources.
The company’s strategy remains focused on identifying shallow oxide gold deposits suitable for cost-effective processing. Upcoming milestones include the release of metallurgical results and a resource update for Liontown in July, followed by the commencement of mining studies. Additional fieldwork is planned at the Sybil gold project, further expanding Sunshine’s exploration footprint.
Context within the Ravenswood Consolidated Project
Liontown is part of the broader Ravenswood Consolidated Project, a prolific mining district with a history of producing over 20 million ounces of gold and significant base metals. Sunshine’s portfolio includes multiple advanced prospects and base metal resources, positioning the company well to leverage existing infrastructure and regional expertise.
While the drilling results and resource advancement at Liontown are promising, metallurgical test outcomes remain pending and are crucial for confirming the economic viability of the oxide gold resource. Additionally, the presence of historical mined voids intersected during drilling requires careful modelling to refine resource estimates.
Bottom Line?
As Sunshine Metals moves swiftly towards resource upgrades and mining studies, the next few months will be pivotal in defining Liontown’s commercial potential.
Questions in the middle?
- How will metallurgical test results impact the resource upgrade and project economics?
- What is the timeline and expected scale of mining studies following the resource update?
- Could results from Salla and Plateau targets add significant new resources to Sunshine’s portfolio?