Sunshine Metals Faces Resource Conversion and Exploration Risks Ahead

Liontown Resource Upgrade Signals Progress

Sunshine Metals Ltd has reported a significant 14% increase in its Liontown shallow gold resource, now estimated at 108,000 ounces of gold. This upgrade follows 29 reverse circulation drill holes totalling 1,834 metres, which improved geological confidence and tightened drill spacing to approximately 25 by 25 metres. The updated resource underpins a near-term mining study that is considering the extraction of 0.8 million tonnes at 4.3 grams per tonne gold, alongside 803,000 ounces of silver, positioning Sunshine Metals on a clear path towards first production in 2026.

The Liontown deposit, historically mined as the Carrington Gold Mine in the early 1900s, remains open for expansion, with ongoing grade control drilling extended after exceptional near-surface gold and silver results. These results include intercepts such as 4 metres at 17.65 grams per tonne gold and 402 grams per tonne silver, highlighting the potential for economically viable open-pit mining operations.

Sybil Prospect Delivers High-Grade Gold Intercepts

At the 100% owned Sybil prospect, Sunshine Metals completed its maiden diamond drilling program, returning outstanding high-grade gold results from 12 of 14 holes. Notable intercepts include 4.4 metres at 57.51 grams per tonne gold and 4.5 metres at 17.23 grams per tonne gold, confirming the presence of shallow, low-sulphidation epithermal gold mineralisation. These results have refined the geological model, particularly the orientation of the A Vein, and opened up new targets for follow-up drilling planned for early 2026.

The Sybil prospect, located approximately 140 kilometres from Charters Towers, is analogous to the nearby Pajingo epithermal system, which has historically produced around 4 million ounces of gold. The recent drilling success and planned magnetic surveys underscore Sunshine Metals’ commitment to unlocking the prospect’s full potential.

VTEM Max Survey Identifies New VMS Targets

Further bolstering its exploration pipeline, Sunshine Metals has identified seven high-priority volcanogenic massive sulphide (VMS) targets across the Coronation-Highway area through a VTEM Max airborne electromagnetic survey funded by the Queensland Government. These conductive anomalies, including at Coronation and Truncheon East, are prospective for zinc, copper, lead, gold, and silver mineralisation. Early ground-truthing at Truncheon East has already yielded exceptional gold-in-soil grades, suggesting promising follow-up exploration opportunities.

Financial Position and Corporate Developments

Sunshine Metals ended the quarter with approximately $4.6 million in cash reserves. The company raised an additional $139,000 through a placement tranche and received $1.085 million from option exercises. Post-quarter, Sunshine also collected a $634,302 final dividend from Pluton Resources Limited relating to outstanding royalty payments, providing a welcome boost to its financial position. The company continues to manage its portfolio actively, with plans to divest non-core projects such as Investigator and Hodgkinson in due course.

Looking ahead, Sunshine Metals is focused on delivering the Liontown mining study results, extending grade control drilling outcomes, and advancing exploration at Sybil with upcoming magnetic surveys and drilling campaigns. These activities will be critical in validating the company’s near-term production ambitions and unlocking further value from its North Queensland assets.