Sunstone Metals reported strong exploration progress in the June 2026 quarter at its Bramaderos and El Palmar gold-copper projects in Ecuador, highlighted by consistent long mineralised intersections and a $10 million capital raise.
- All 20 drill holes at Bramaderos return long mineralised intersections
- Bramaderos holds a 3.6Moz AuEq resource with substantial exploration targets
- El Palmar drilling to restart targeting deeper porphyry deposits
- Raised $10 million with DGR Global securing a 10% strategic stake
- Cash position at quarter-end was A$1.7 million
Bramaderos Drilling Extends Mineralisation Footprint
Sunstone Metals (ASX:STM) is making steady headway at its Bramaderos gold and copper project in southern Ecuador, with all 20 holes assayed so far in the current drilling campaign returning long mineralised intersections from surface. The recent drilling at the Porotillo, Copete, and Melonal prospects has extended mineralisation over an area exceeding 500 metres by 200 metres beyond the existing 3.6 million ounce gold equivalent (AuEq) resource, underscoring significant growth potential.
This expanded footprint is set to be incorporated into an updated Mineral Resource Estimate (MRE) planned for the second half of 2026, which could materially increase the project's inventory. The ongoing drill program is targeting conversion of a substantial Exploration Target in the Copete-Porotillo complex, estimated at 135 to 180 million tonnes grading 0.40 to 0.60 g/t AuEq, equivalent to 1.7 to 3.5 million ounces AuEq. The mineralisation is hosted in a variety of intrusive and breccia bodies, with stronger zones plunging steeply towards deeper magnetic targets that remain to be tested.
The Bramaderos project benefits from accessible infrastructure, including proximity to the Pan-American Highway, grid power, and nearby commercial airports, alongside strong community support, factors that enhance the economics of future development.
El Palmar Drilling to Resume with Large Targets in Sight
In northern Ecuador, Sunstone is preparing to restart drilling at its El Palmar gold-copper project in the September quarter, focusing on deeper exploration targets adjacent to the Toachi Fault and below the identified starter pit. The current MRE at El Palmar stands at 1.2 million ounces AuEq, based solely on the outcropping T1 porphyry deposit, one of five known targets on the concession.
The broader El Palmar Exploration Target is highly compelling, estimated between 15 and 45 million ounces AuEq within 1.0 to 1.2 billion tonnes of mineralisation at grades ranging from 0.3 to 0.7 g/t gold and 0.1% to 0.3% copper. This target includes near-surface and deep mineralisation extending to 1,500 metres below surface, with potential for copper grades to increase in central porphyry zones. The company is steadily increasing its ownership of El Palmar, currently holding 82.6% with plans to acquire 100% by mid-2027.
Capital Raise Bolsters Exploration and Strategic Backing
Sunstone closed the quarter with a cash balance of approximately A$1.7 million. However, the company successfully completed a $10 million share placement at $0.175 per share in late June, with funds received in early July. This capital injection is earmarked for advancing drilling programs at Bramaderos and El Palmar, metallurgical testing, and increasing the company's stake in El Palmar.
Strategically, Sunstone welcomed DGR Global as a 10% cornerstone investor. DGR brings a strong track record in resource company development, notably with SolGold Plc, which was sold for A$1.7 billion earlier in 2026. DGR’s involvement includes the right to nominate a board representative, signaling a vote of confidence in Sunstone’s Ecuador portfolio and growth strategy.
Metallurgical and Baseline Studies Support Future Development
Following the release of a scoping study for Bramaderos in April 2026, which outlined a low-stripping-ratio mine plan and Ausenco-designed processing plant, Sunstone retracted production and financial forecasts due to a heavy reliance on inferred resources. The company continues to conduct metallurgical and environmental baseline studies to underpin future feasibility work.
Exploration expenditure for the quarter was A$2.7 million, primarily directed towards ongoing diamond drilling and study work. Corporate costs remained tightly managed at A$0.4 million, with director remuneration totaling A$0.2 million.
Outlook Hinges on Resource Upgrades and Deeper Drilling
Sunstone’s next major milestones include the updated Bramaderos MRE expected in the second half of 2026 and the resumption of drilling at El Palmar targeting deeper porphyry systems. These catalysts will be critical in validating the substantial exploration targets that currently remain conceptual. The company’s ability to convert these targets into JORC-compliant resources will be pivotal for advancing project valuation and attracting further investment.
Bottom Line?
Sunstone’s robust drilling results and strategic capital raise set the stage for resource upgrades, but the path to development depends on converting sizeable exploration targets into defined resources.
Questions in the middle?
- Will the upcoming Bramaderos resource update confirm the anticipated growth from Porotillo and Copete drilling?
- How will the deeper targets at El Palmar perform once drilling resumes, and what impact will this have on the project’s scale?
- What role will DGR Global’s strategic involvement play in accelerating Sunstone’s exploration and development plans?