Sunshine Metals (ASX:SHN) anticipates growing and upgrading a substantial portion of the Liontown deposit resource within the Ravenswood Consolidated Project in North Queensland to the indicated category.
The company has compiled drilling data to be incorporated into a resource update for the Liontown deposit.
The $18 million market capitalisation company reports 96 drillholes for 18,150m have been completed since the last resource update on 11 March 2020. Sunshine adds 198 additional intercepts will be included in the December 2023 quarter resource update.
Drilling to date comprises ‘largely’ of infill drilling and Sunshine expects to convert a ‘significant’ portion of the resource from inferred with 68%, to indicated with 32%.
Some of the ‘best’ results from the oxide gold reverse circulation (RC) holes include drillhole LLRC200 with 14m @ 4.12g/t Au, 82g/t Ag from 40m; and drillhole LLRC207 with 4m @ 6.26g/t Au, 167g/t Ag from 25m.
Commenting on the resource update, Sunshine Metals Managing Director Damien Keys says: “A substantial amount of drilling has been completed at Liontown since the Liontown resource was last updated.
The drilling is anticipated to upgrade a substantial portion of the resource to indicated, grow the resource, and will be critical information to guide future Scoping Studies.
Furthermore, the drilling has reaffirmed the continuity of mineralisation towards the ‘gap’ between the Liontown and Liontown East resources, where drilling is too sparse to determine a resource estimate. This area will be a focus for future resource extensional drilling.”
The company notes it will be beginning drilling at the Greater Liontown Project area and Ravenswood Consolidated Project during this month. Alongside completing the Greater Liontown transaction.
This news comes after the company announced in May 2023 that it had agreed to acquire the Greater Liontown Project for $3.25 million in cash, with a further $2 million cash, payable once production milestones are met.
The Ravenswood Consolidated Project is located in the Charters Towers-Ravenswood district of Queensland, Australia.
Sunshine Metals is an ASX-listed explorer, focused on gold, copper, zinc, and molybdenum. As of 30 June 2023, the company had $3.33 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Sunshine Metals
