Sunshine Metals has reported outstanding near-surface gold and silver intercepts from its ongoing drilling at the Liontown deposit, signalling a potential upgrade to its resource and mining plans.
- High-grade gold and silver intercepts near surface at Liontown
- Drilling program extended to 121 holes with 68 assay results received
- Initial Mining Study targeting 108,000 ounces gold and 803,000 ounces silver
- Resource upgrade and Mining Study update expected by March 2026
- Intersection of two mineralised horizons remains unmined, indicating resource upside
Exceptional Drilling Results at Liontown
Sunshine Metals Limited (ASX, SHN) has unveiled a series of remarkable high-grade gold and silver intercepts from its ongoing reverse circulation (RC) grade control drilling program at the Liontown deposit, part of the Ravenswood Consolidated Project in North Queensland. The drilling has revealed near-surface mineralisation with grades that significantly outperform the existing resource model, highlighting the potential for a substantial resource upgrade.
Among the standout results are intercepts such as 30 metres at 6.68 grams per tonne (g/t) gold and 396 g/t silver from just 17 metres depth, including a spectacular 3 metres at 52.12 g/t gold and 2,932 g/t silver. These grades are exceptional, especially considering the shallow depth, which bodes well for potential open-pit mining operations.
Expanding the Drilling Program and Resource Implications
Originally planned as an 84-hole program, the drilling has been extended to 121 holes totaling over 5,200 metres, with 82 holes completed and assays received for 68. The program aims to achieve a drill spacing of approximately 12.5 by 12.5 metres, enhancing confidence in resource estimation and mine planning. The intersection of two mineralised horizons, historically mined separately but not at their junction, presents a promising zone for resource growth.
The initial Mining Study underway is considering a resource base of 108,000 ounces of gold at an average grade of 4.37 g/t and 803,000 ounces of silver at 31.6 g/t. This study is on track for delivery in February 2026, with further updates incorporating the latest drilling results expected in March. The high-grade intercepts near surface are anticipated to positively influence the economic outcomes of the study.
Strategic Location and Historical Context
Liontown is situated within a prolific mining district near Charters Towers, Queensland, an area with a rich history of gold production. The deposit itself was historically mined as the Carrington Gold Mine in the early 20th century, producing high-grade gold. Sunshine Metals’ current exploration and resource development efforts build on this legacy, leveraging modern drilling and assay techniques to unlock further value.
Metallurgical test work from related zones has demonstrated rapid gold leaching kinetics with high recovery rates, supporting the feasibility of efficient processing methods. Sunshine Metals is also progressing metallurgical studies to convert inferred resources to indicated status, further de-risking the project.
Looking Ahead, A Busy 2026 for Sunshine Metals
The company has outlined a busy schedule for early 2026, including the release of the initial Mining Study, ongoing drill results, and a resource upgrade for the shallow gold domain at Liontown. Additionally, a magnetic survey at the Sybil project, another promising gold system in the region, is set to commence. These activities underscore Sunshine Metals’ commitment to advancing its portfolio and delivering value to shareholders.
Managing Director Dr Damien Keys expressed enthusiasm about the results, noting the rarity of such high-grade intercepts and the strong potential for resource growth at the intersection of mineralised horizons. The company’s methodical approach to drilling and resource modelling positions it well to capitalise on these findings.
Bottom Line?
With exceptional grades near surface and a robust drilling program underway, Sunshine Metals is poised for a significant resource upgrade that could reshape its mining prospects in 2026.
Questions in the middle?
- How will the updated Mining Study in March 2026 reflect the impact of these high-grade intercepts on project economics?
- What is the potential scale of resource growth at the unmined intersection of the two mineralised horizons?
- How might metallurgical results influence the conversion of inferred resources to indicated status and subsequent mine planning?