Liontown’s Silver Surge Could Reshape Sunshine Metals’ 2026 Production Plans

Exceptional Drilling Results Spark Program Expansion

Sunshine Metals Ltd (ASX – SHN) has announced a significant extension to its reverse circulation (RC) grade control drilling program at the Liontown deposit, part of its Ravenswood Consolidated Project in North Queensland. The decision follows the receipt of outstanding near-surface gold and silver assay results from 68 holes completed to date, with 37 additional holes now approved to further delineate high-grade mineralisation.

The standout intercepts include 4 metres grading 17.65 grams per tonne (g/t) gold and 402 g/t silver from just 25 metres depth, alongside other impressive hits such as 8 metres at 6.16 g/t gold and 37 g/t silver. Notably, some intervals contain stope fill material, indicating proximity to historical mining voids, which Sunshine is carefully integrating into its resource models.

Silver Emerges as a Key Value Driver

While gold has traditionally been the primary focus at Liontown, recent drilling has revealed some of the highest silver grades recorded at the deposit, including spectacular intercepts of up to 1,870 g/t silver over 5 metres and 1,321 g/t silver over 8 metres. This discovery has prompted Sunshine’s management to refine its Gold Mining Study to incorporate these high-grade silver zones, recognising silver’s growing importance amid tightening global supply concerns.

Currently, the Liontown Resource hosts approximately 5.5 million ounces of silver at an average grade of 27.1 g/t, with the mining study considering 803,000 ounces at a higher grade of 31.6 g/t. The company’s Managing Director, Dr Damien Keys, emphasised the strategic timing of this development, noting that the combined scale, grade, and shallow nature of the gold-silver mineralisation present a compelling opportunity for production commencement in 2026.

Resource Growth and Study Progress

The ongoing drilling program is focused primarily on the eastern end of the shallow oxide gold resource, which remains open for expansion. Sunshine has completed 68 of the planned 84 holes, totaling 2,657 metres, and the recent extension adds approximately 1,890 metres of drilling to test further high-grade zones.

The Liontown Gold Mining Study is progressing on schedule, with delivery expected in January 2026. The study currently considers a resource of 0.8 million tonnes at 4.3 g/t gold for 108,000 ounces of gold and 31.6 g/t silver for 803,000 ounces of silver. Metallurgical test work has demonstrated rapid gold leach kinetics with high recovery rates, supporting the economic viability of the deposit.

Historical Context and Future Outlook

Liontown has a rich mining history dating back to the early 1900s, with previous underground mining producing high-grade gold. Sunshine’s modern exploration and resource modelling have built on this legacy, integrating extensive historical and recent drilling data to refine the resource estimate and mining plans.

Looking ahead, Sunshine plans to release further drilling results throughout January and February 2026, alongside the completion of the Gold Mining Study. The company is positioning itself to become a gold and silver producer within the year, capitalising on the robust grades and strategic location near established mining infrastructure in Queensland.