Liontown Mining Study Projects A$163M Cashflow from 75Koz Gold Production

Overview of the Liontown Mining Study

Sunshine Metals Limited has delivered a scoping-level Mining Study for its Liontown Gold Operation, part of the Ravenswood Consolidated Project in North Queensland. The study, based on the November 2025 Mineral Resource, sets an initial production target of approximately 75,000 ounces of gold at an average grade of 2.96 grams per tonne and 654,000 ounces of silver at 25.73 grams per tonne. This production is planned through a combination of staged open pit and underground mining operations.

The study’s financial projections are encouraging, with gross revenue estimated at around A$458 million and net operating cashflow of approximately A$163 million, assuming gold and silver prices of $6,500 and $100 per ounce respectively. Capital requirements are modest, with a maximum expected cash drawdown of just A$4.6 million and an all-in sustaining cost (AISC) of A$2,741 per ounce of gold, positioning the project as economically attractive.

Operational and Regulatory Progress

Mining and environmental approvals are well advanced, with the project benefiting from existing mining leases and standard environmental authority conditions. Sunshine is targeting a potential commencement of mining activities in late 2026, supported by early contractor engagement. The company is actively pursuing discussions with third-party partners for funding, haulage, and processing arrangements, aiming to accelerate the pathway to production while preserving capital.

The Liontown deposit itself is a volcanogenic massive sulphide (VMS) system with a total Mineral Resource of 6.3 million tonnes containing gold, silver, copper, zinc, and lead. The Mining Study focuses on the gold-rich portion of the resource, which represents roughly 8% of the total resource tonnage, with plans to leverage infrastructure for future base metal extraction.

Upcoming Resource Update and Opportunities

Importantly, the current Mining Study does not incorporate recent exceptional grade control drilling results, which have revealed thick, high-grade gold and silver intercepts. These results are expected to be integrated into an updated Mineral Resource and Mining Study scheduled for release in April 2026. This update could significantly enhance the project’s economics and production profile.

Additional opportunities identified include optimisation of pit shells and underground extraction methods, potential efficiency gains through mining contract tender rates, and evaluation of the polymetallic underground resource for longer-term value. The underground mine is also planned to serve as a platform for further exploration and resource infill drilling, underscoring Sunshine’s commitment to resource growth.

Cautionary Notes and Market Implications

The Mining Study is preliminary and incorporates both Indicated (73%) and Inferred (27%) Mineral Resources, with the latter carrying a lower geological confidence. Sunshine cautions investors that further technical and economic studies are required to confirm Ore Reserves and the economic viability of the project. Funding assumptions underpinning the study are reasonable but not guaranteed, and processing agreements remain under negotiation.

Nevertheless, the study’s robust financial metrics at conservative metal prices provide a strong platform to attract investment and support Sunshine’s strategy to transition into a self-funded explorer and sustainable producer. The company’s focus on advancing regulatory approvals and resource growth positions Liontown as a compelling project in the North Queensland mining landscape.