Sunshine Metals (ASX:SHN) is upbeat about its chances of generating revenue in North Queensland.
Sunshine Managing Director Damien Keys tells this news service on the sidelines of the Gold Coast Gold Conference last week, that the Liontown gold deposit will create major cash flow. This is partly due to record-high gold spot prices that have jumped 60% to more than US$4,666 ($6,783) an ounce, according to the ABC Bullion website.
“Such a volatile market has been tough, but we have landed on $6,500 for gold per ounce and that is pretty close to the mark in this period of volatility and shows we can make really good returns — it is fantastic,” he tells Mining.com.au.
“[Liontown] has a four-year mine life, generating $163 million of free cash flow at the study parameters after capital [expenses].”
Keys reveals the project mining study is complete and drilling results suggest the mineral resource could cover a larger-than-expected area.
“Only 8% of the resource went into the mining study [and] it is the gold and silver rich portion of the deposit that is amenable to our conventional carbon-in-leach gold treatment,” he says.
“We have about 75 tunnels’ worth back out of a 120-hole program. The best number there is 30 metres and 6.68 gram per tonnes of gold and 528 g/t of silver… [and] we still have 50-odd holes to release to market as they come back.”
The company recently secured a $202,235 grant through Round 10 of the Queensland Government’s Collaborative Exploration Initiative. The money will be used to cover drilling expenses.
“The initial cost of drilling is a huge impost on the exploration industry, but we have to do it to move forward,” Keys says.
“Any chance you can get to bring some of these targets online and get in early to test and understand these targets is critical.”
The Gold Coast Gold Conference was held over two days (25–26 March 2026) at the QT Hotel in Surfers Paradise, Queensland.
Mining.com.au was a media partner for the event and attended both days.
Sunshine Metals is a discovery and development company with assets mostly in North Queensland.
Write to Richard Szabo at Mining.com.au
Images: Stuart Shepherd, Mining.com.au
