Ann: Significant Increase in Liontown Resource, page-16

SUNSHINE METALS (ASX:SHN)

A major resource upgrade at Sunshine’s Liontown deposit in the heart of Queensland’s gold country to the south of Queensland has investors back on the horse at the $17m capped junior explorer.

The gold and base metals hunter has posted a 21% increase in resources at Liontown part of the broader Ravenswood Consolidated project where it holds a commanding land package in the shadow of major gold mines like Mt Leyshon, Ravenswood and Mt Carlton.

READ: Sunshine Metals flexes its gold-copper muscle as Liontown resource upgrade delivers greater certainty

It now boasts 2.94Mt at 10.6% zinc equivalent, with an even bigger 116% lift in indicated resources to 1.85Mt 1t 10.9% ZnEq — 63% of the total resource.

Gold ounces have lifted 10% to 132,000oz, with copper tonnages 60% up at 29,000t.

The broader Ravenswood project contains 5.45Mt of known resources at a 12% ZnEq grade, indicated resources making up 47% of the total. The rise in indicated resources is important, because those have been drilled with enough density to be placed in a mining reserve.

Pic: SHN

Sunshine MD Damien Keys said the resource was a ‘substantial step forward’, based on drilling conducted since 2020 and including ‘high impact, first pass’ drilling that caught the market’s attention late last year.

“Particularly encouraging is the growth in contained copper and gold which we began focusing on since taking control in September 2023. Drilling has recommenced at Liontown targeting an extension to the gold-rich pumice breccia zone hosting intersections including 17m @ 22.05g/t Au (23LTRC002) and 8m @ 10.65g/t Au (LTDD22055),” Dr Keys said.

“A copper-rich lens and/or potential feeder fault zone is also being tested in the footwall zone of the Carrington Lode with nearest holes grading 4.65m @ 5.48% Cu, 2.05g/t Au from 188m & 2.35m @ 3.75% Cu from 197m (LTDD19029) and 6m @ 4.49% Cu from 252m (LTDD19008).

“Aside from the gold-copper footwall lodes currently being drilled, Resource growth opportunities remain in the under-drilled 400m ‘Gap Zone’ between Liontown and the 1.47mt @ 11.0% ZnEq Liontown East resource.

“We are excited with the progress we have made since taking control and look forward to further resource growth in 2024.”

Located near Charters Towers, the Ravenswood district has delivered some 20Moz of gold and 14Mt of VMS ore containing copper, gold, zinc, lead and silver across its history.