Sunshine Metals has reported standout drilling results from its Liontown Gold Panel, including 22 metres at 20.25 grams per tonne gold, underpinning a resource update and revised mining study planned for mid-2026.
- 22m at 20.25g/t gold intercept at Liontown
- Resource update and mining study revision due June 2026
- $22 million capital raise underway including $3 million SPP
- Acquisition of Mt Moss processing facility progressing
- Operational milestones scheduled through late 2026
High-Grade Drilling Confirms Underground Potential
Sunshine Metals (ASX:SHN) has delivered a punchy set of final assays from its resource definition drilling at the Liontown Gold Panel, part of its Ravenswood Consolidated Project in North Queensland. The highlight is a thick 22-metre intercept grading 20.25 grams per tonne (g/t) gold from 69 metres depth, including extremely high-grade intervals such as 8 metres at 39.58g/t and 4 metres at 29.45g/t. This continues a string of impressive results that bolster confidence in the underground mining potential of the Liontown deposit.
The Liontown Gold Panel currently hosts a resource of 247,000 tonnes at 7.35g/t gold and 11g/t silver, containing 58,200 ounces of gold and 87,000 ounces of silver. Sunshine plans to incorporate these latest assay results into an updated resource estimate scheduled for the June 2026 quarter, which will feed directly into a revised mining study due shortly thereafter. This updated study aims to refine the economic case for underground extraction and integrate additional metallurgical data.
Capital Raise Supports Expansion and Production Plans
Backing these drilling results, Sunshine is in the midst of a $22 million capital raising package to fund the acquisition of the Mt Moss processing facility and advance its gold production ambitions for 2027. Part of this raise is a $3 million Share Purchase Plan (SPP) open to eligible shareholders until 22 May 2026, offering an opportunity to participate on the same terms as sophisticated investors. The funds will underpin not only the Mt Moss acquisition but also ongoing exploration and development across the Ravenswood Consolidated Project.
The Mt Moss acquisition, a key strategic move, is expected to complete in May 2026, with the camp opening in June and construction commencing by September. This facility will provide Sunshine with a processing hub to complement its mining operations, including Liontown and the newly added Sybil gold system. The company’s busy schedule through 2026 also includes magnetic surveys and drilling at Sybil’s Francis Creek prospect, resource upgrades, and base metal mining study initiation.
Robust Economics from Liontown Mining Study
The February 2026 Liontown Mining Study, which did not incorporate the most recent high-grade drilling, outlined a robust project economics scenario. It targeted initial production of approximately 75,000 ounces of gold at an average grade of 2.96g/t and 654,000 ounces of silver at 25.73g/t, generating an estimated net operating cashflow of around A$163 million at gold and silver prices of A$6,500/oz and A$100/oz respectively. The study envisaged a multi-staged open pit and underground operation with an all-in sustaining cost of A$2,741 per ounce.
Given that the recent drilling intercepts, including the 22m at 20.25g/t Au, were not included in the study, the upcoming resource update and mining study revision are expected to enhance the project’s economic profile. This aligns with Sunshine’s strategy to underpin its Mt Moss acquisition and accelerate gold production timelines.
Drilling Program and Resource Confidence
The latest drilling program comprised 30 reverse circulation holes totaling 2,032 metres, spaced at 25m by 25m, targeting the uppermost two levels of underground development and extensions beyond the current resource. The program successfully upgraded resource confidence and extended mineralisation westward, delivering multiple high-grade intercepts beyond the previous grade control drilling area.
These results build on earlier Sunshine intercepts such as 17m at 22.14g/t Au and 20m at 18.21g/t Au, reinforcing the continuity and scale of the high-grade gold system. The company’s technical team and external consultants have verified the data and are incorporating it into the updated resource model. The drilling and sampling followed rigorous industry standards, with detailed logging, quality control, and independent assays.
Sunshine’s Managing Director, Dr Damien Keys, highlighted the significance of these results in extending a thick zone of high-grade mineralisation that will feed into the upcoming resource and mining study updates, which are critical to underpinning the Mt Moss processing facility acquisition and the company’s production ambitions.
Strategic Position in Ravenswood Gold District
Sunshine’s Ravenswood Consolidated Project is strategically located near the Charters Towers mining hub, an area with a rich history of gold and base metal production exceeding 20 million ounces of gold. The project encompasses multiple gold and base metal prospects, including the Liontown Dome and the recently acquired Sybil epithermal gold system. Sybil’s Francis Creek prospect has delivered encouraging high-grade gold results, adding to Sunshine’s growth pipeline.
Alongside gold, Sunshine holds a significant zinc-copper-lead VMS resource within Ravenswood, with grades equivalent to 929,000 ounces of gold equivalent. The company’s integrated approach to gold and base metal exploration and development positions it well for diversified growth in the region.
Sunshine’s ongoing work includes magnetic surveys and drilling at Sybil, resource and mining study updates at Liontown, and advancing Mt Moss construction. These initiatives are timed to support a target gold production start in 2027, leveraging both new and existing infrastructure.
The current capital raising and resource update represent critical milestones in Sunshine’s transition from exploration to production, with the recent drilling results providing tangible evidence of the project’s high-grade potential and economic viability.
These developments follow Sunshine’s recent $22M capital raise and build upon the strong foundation laid by the Liontown Mining Study that highlighted robust cashflow potential from shallow gold and silver resources. The company’s methodical approach to resource definition, combined with strategic asset acquisitions, underscores its commitment to unlocking value from the Ravenswood district.
Bottom Line?
Sunshine Metals’ latest high-grade drilling at Liontown strengthens its underground mining case ahead of a pivotal resource update and capital raise close.
Questions in the middle?
- How will the updated Liontown resource and mining study reshape Sunshine’s production timeline and economics?
- What is the market appetite for the $3 million Share Purchase Plan amid broader capital raising efforts?
- To what extent will the Mt Moss processing facility acquisition accelerate Sunshine’s transition to gold producer?