Sunshine Metals (ASX:SHN) has identified shallow oxide gold resources at its Liontown prospect in the Ravenswood Consolidated Project in North Queensland.
A reverse circulation drilling program spanned 29 drillholes over 1,834m to identify shallow oxide gold resources. Sunshine has received 16 assays with results including 10m @ 31.91 grams per tonne gold from 41m with 2m @ 121.5g/t gold from 46m.
The company shares that the oxide and transitional resource has tightened in drill spacing to approximately 25m by 25m, following the completion of this program.
Results from the remaining 13 drillholes are expected to return in early June 2025.
Metallurgical samples will be sent for analysis once all assays have been received. Metallurgical test work is required for an upgrade from inferred to indicated resource.
Historical mined voids have been intersected in the recent drilling. The voids were 1-2m wide (true thickness) on average and were intersected in predicted locations.
A refined void model will be constructed as part of the resource upgrade which is due in July 2025. Sunshine says mining studies will be fast-tracked once metallurgical and resource upgrades have been completed.
Managing Director Damien Keys is pleased to return a “stunning” intersection of gold given the longevity of mining operations at Liontown.
“Liontown began as a gold mine in 1905 with an estimated 28koz of gold mined at a grade of 22g/t,” Keys says.
“It is certainly reassuring that the first miners did not take all of the high-grade gold mineralisation!”
Given the current height of gold prices, Sunshine aims to identify shallow resources to meet demand by evaluating the commercial potential of its assets.
As of today (3 June), the price of gold is marked at US$3,377 ($5,200.25) per ounce, indicating a 28.7% increase over the past year to date. Doubts between the US and China’s trading future, along with the global cost of living crisis, has encouraged a stronger inflation rate, as reported by Mining.com.au.
Sunshine Metals is an Australian exploration company focused on the development of its portfolio of projects spanning Queensland.
Write to Maddison Elliott at Mining.com.au
Images: Sunshine Metals
