Sunshine Metals has boosted its Liontown gold-silver resource in Queensland, increasing contained gold by 13%, silver by 21%, and overall tonnes by 28%, underpinning plans for mid-2027 gold production at the Mt Moss facility.
- Liontown Resource upgraded to 7.27Mt at 3.19g/t AuEq for 745koz recoverable
- Gold-dominant Liontown Gold Study Resource totals 1.02Mt at 3.75g/t Au with 75% Measured or Indicated
- Metallurgical tests show 92.3% average gold recovery at 80µm grind
- Ravenswood Consolidated Resource now 8.36Mt at 3.47g/t AuEq for 931koz recoverable
- Mining study update due August 2026; milling to start mid-2027 at Mt Moss
Liontown Resource Expansion Boosts Sunshine Metals’ Gold Prospects
Sunshine Metals (ASX:SHN) has delivered a significant upgrade to its Liontown Project resource in Queensland, lifting contained gold by 13%, silver by 21%, and overall tonnes by 28%. The total Liontown Resource now stands at 7.27 million tonnes grading 3.19 grams per tonne gold equivalent (AuEq), translating to 745,000 recoverable ounces. This upgrade follows an intensive grade control drilling campaign and fresh metallurgical test work.
The gold-focused segment of the resource, dubbed the Liontown Gold Study Resource, comprises just 14% of the total tonnes but accounts for 36% of the contained gold. It now totals 1.02 million tonnes at 3.75g/t gold and 29.9g/t silver, with a robust 75% classified as Measured or Indicated, reflecting increased confidence in the shallow, open-pit accessible zones. Sunshine’s Managing Director Dr Damien Keys highlighted that the improvements in grade and recovery lay a solid foundation for the upcoming mining study update due in August 2026.
Metallurgical Advances and Mining Study Update
Metallurgical test work on open-pit mineralisation, using gravity and conventional bottle roll leaching at an 80-micron grind size, returned an average overall gold recovery of 92.3%. These results underpin the processing assumptions for the Liontown ore, which Sunshine intends to mill at its recently acquired Mt Moss Processing Facility starting mid-2027. The company is incorporating the updated resource and improved recoveries into a revised Liontown Mining Study, which will also factor in owner-operator milling benefits at Mt Moss.
The broader Ravenswood Consolidated Resource, which includes the Waterloo and Orient deposits alongside Liontown, has also been upgraded to 8.36 million tonnes at 3.47g/t AuEq for 931,000 recoverable ounces. This polymetallic resource features a zinc equivalent grade of 11.8%, reflecting the significant base metal content alongside gold and silver.
Extensive Drilling and Geological Modelling Support Upgrade
The resource upgrade is supported by 7,913 metres of reverse circulation drilling completed between November 2025 and March 2026, targeting shallow gold mineralisation. This drilling tightened spacing to approximately 12.5 metres and improved resource confidence, particularly in oxide and transitional zones. The Liontown deposit is a volcanogenic massive sulphide (VMS) system with distinct metal zonation, allowing Sunshine to focus on gold-rich horizons amenable to conventional carbon-in-leach processing.
Notable recent drill intersections include 30 metres at 6.68g/t gold and 528g/t silver, 24 metres at 7.08g/t gold and 305g/t silver, and 20 metres at 5.62g/t gold and 310g/t silver, confirming the high-grade nature of the gold zones. The company’s geological model and mineral resource estimation employ rigorous kriging variance classification and incorporate historical mining voids to enhance accuracy.
Upcoming Exploration and Development Milestones
Sunshine Metals has a busy schedule ahead, with drilling commencing at the Sybil Project in July 2026, followed by the release of the updated Liontown Gold Mining Study in July-August. Engineering and design works for Mt Moss are also expected to complete by August, with refurbishment and gold circuit construction slated for September-October 2026. These activities align with Sunshine’s strategy to accelerate gold production and capitalise on the upgraded resource base.
The company’s broader Ravenswood Consolidated Project benefits from a rich regional geology within the Charters Towers-Ravenswood district, a prolific gold and base metals mining hub. Sunshine’s portfolio also includes advanced prospects at Sybil and Investigator, with ongoing exploration aimed at unlocking further value.
Bottom Line?
Sunshine’s upgraded Liontown resource and metallurgical gains set a clearer path to mid-2027 gold production, but the upcoming mining study and Mt Moss refurbishment will be critical to validate economic viability.
Questions in the middle?
- How will the updated Liontown Mining Study address processing and cost assumptions with owner-operated milling at Mt Moss?
- What is the potential timeline and capital requirement to convert inferred resources to higher confidence categories?
- How might fluctuations in metal prices and recovery rates impact the economic thresholds underpinning the zinc and gold equivalent calculations?