Sunshine Metals (ASX:SHN) has announced a scoping study for the initial open pit and underground at Liontown, part of the Ravenswood Consolidated Project in North Queensland.
The scoping study outlines an initial production target of approximately 75,000 ounces @ 2.96 grams per tonne gold and 654,000 ounces silver @ 25.73g/t silver, at 73% indicated and 27% inferred resources.
Recently reported thick, ‘high-grade’ gold and silver intercepts are not included in the mining study, so the company notes that the initial production target is subject to potential growth following a mineral resource update expected in April 2026.
The scoping study outlines robust financials with a net operating cashflow of $162.7 million, with a consideration of $6,500 per ounce gold and $100 per ounce silver. Gross revenue of approximately $458 million is expected.
Managing Director Damien Keys says that this initial study outlines the strong potential for “high-grade, near-surface gold and silver mineralisation” at Liontown.
“The study outlines compelling economics, modest capital requirements and the potential for early cashflow generation, providing a solid foundation for our strategy to transition Sunshine into a self-funded explorer and sustainable gold and base metals producer,” Keys says.
“With the study complete, we are advancing discussions with third-party partners regarding funding, development, haulage, and processing options. This approach is aimed at accelerating the pathway to first production, targeted for late 2026, while preserving capital and maintaining focus on resource growth across the broader Liontown system.”
The study also outlines a maximum cash drawdown of approximately $4.6 million and an all-in sustaining cost of $2,741 per ounce of gold.
Mining and environmental approvals are underway, with early contractor engagement also in process to support the potential commencement of work in late 2026.
Sunshine Metals is advancing exploration and development projects in North Queensland, with a focus on the Ravenswood Consolidated Project.
Write to Amy Rotman at Mining.com.au
Images: Sunshine Metals
