Sunshine Metals Boosts Liontown Gold Resource with Strong High-Grade Drilling Results

Grade Control Drilling Validates Shallow Gold Potential

Sunshine Metals Ltd (ASX:SHN) has wrapped up a 121-hole, 5,195-metre reverse circulation (RC) grade control drilling program at its Liontown open pit in North Queensland, delivering final assays that underscore the project’s high-grade gold and silver potential. The drilling, designed to support mine planning and boost resource confidence, revealed standout intercepts such as 7 metres at 5.87 grams per tonne (g/t) gold from surface including a 1m interval at 30.10g/t, and 3 metres at 25.01g/t gold including 1m at 68.80g/t. These results confirm the shallow oxide gold mineralisation that forms the basis of the proposed open pit mining operation.

Importantly, the program expanded on earlier drilling, increasing hole count from 84 to 121 after initial high-grade results encouraged further infill. The spacing of approximately 12.5m by 12.5m across the pit footprint provides a solid dataset for upgrading the resource classification, a critical step ahead of mining.

High-Grade Au Panel Drilling Supports Underground Resource Growth

Alongside the open pit program, Sunshine Metals reported initial assays from a 30-hole, 2,032-metre drilling campaign targeting the Liontown Au Panel, situated about 150 metres east of the open pit area. This zone, earmarked for underground development in the recent mining study, returned impressive results including 14m at 12.38g/t gold from 79m depth, with a 6m segment at 24.44g/t. Another hole yielded 8m at 5.14g/t gold, highlighting continuity of high-grade mineralisation.

The Au Panel currently hosts a resource of 247,000 tonnes at 7.35g/t gold and 11g/t silver, equating to 58,200 ounces of gold and 87,000 ounces of silver. The new drilling aims to upgrade and extend this resource, with further assays expected in May 2026. These results will feed directly into the updated Liontown resource scheduled for release in the June quarter, setting the stage for a revised mining study.

Resource Upgrade and Revised Mining Study on the Horizon

Sunshine Metals plans to incorporate the full suite of recent drilling results into an updated resource model in mid-2026. This update will underpin a revised Liontown Mining Study, slated to commence in June, which will reassess mine design, production targets, and economic parameters. The company’s Managing Director, Dr Damien Keys, emphasised the significance of the assays, noting the "stellar gold numbers" and the contribution these results make to refining mine planning.

This announcement builds on a series of recent positive developments at Liontown, including the earlier high-grade gold intercepts reported in February and the ongoing resource definition drilling at the Au Panel documented in March. Together, these data points paint a compelling picture of a project with both open pit and underground mining potential.

Broader Project Activity and Next Steps

Beyond Liontown, Sunshine Metals has a busy exploration calendar. May 2026 will see the commencement of a magnetic survey at the Sybil project, located roughly 135km west of Townsville, followed by drilling. Sybil is considered analogous to the nearby Pajingo epithermal gold system and has shown promising results in past sampling.

The company will also present at the RIU Sydney Resources Round Up in early May, providing a platform to update investors and the market on its advancing projects. The combination of ongoing assay results, geophysical surveys, and mining study updates positions Sunshine Metals for a potentially transformative year.