Sunshine Metals (ASX:SHN) has announced further consolidation of the Ravenswood Consolidated Project, acquiring full rights to the Mt Moss Operation, a processing facility adjacent to the Sybil and Liontown deposits.
The Mt Moss Operation is being acquired for a cash consideration of $18 million, with $8 million upfront, and $10 million deferred.
The operation contains a 300 kilotonne per annum (Ktpa) crushing and grinding processing facility which will be transformed into a gold processing facility with the inclusion of leaching, elution, and refining components.
Sunshine notes that Mt Moss is in “excellent condition” and contains 7km2 of highly prospective mining leases and 753km2 of exploration permits.
Mt Moss also comprises a grinding circuit with two ball mills at around 300Ktpa capacity, tailing storage, room at the back-end for the installation of a gold circuit, substantial infrastructure including a full 32-room camp, and proximity to Sybil and Liontown.
Mt Moss also has copper-zinc potential, with intersections from previous drilling including 19.9m @ 4.41% copper from 367.8m, 13m @ 3.78% copper from 282m, 30m @ 12.04% zinc from 26m, and 12m @ 19.09% zinc from 78m.
The refurbishment, construction, and final permitting for Mt Moss is expected to be in place for first gold processing from Liontown in mid-2027.
Managing Director Damien Keys says that the acquisition of Mt Moss is “a truly transformational transaction” as it provides the critical infrastructure needed for a gold processing facility.
“Refurbishment, construction, and final permitting at Mt Moss is expected to be completed for first processing in the June 2027 quarter. We can then conduct incremental gold expansions from our 300Ktpa base as we grow from Liontown, Sybil, Plateau, and our many other gold targets,” Keys says.
“We are now masters of our own destiny and not subject to the vagaries and requirements of toll treatment mills. Sunshine has rapidly become a dominant player in the Charters Towers district with a highly prospective 5,307km2 lease holding, a resource base of 929,000 ounces gold equivalent, and an emerging gold discovery at Sybil.
“Mt Moss is the next step in Sunshine’s rapid progression from explorer to developer. We now have a clear path to production.”
Alongside this acquisition, Sunshine has announced a $22 million capital raising, comprising a $19 million two-tranche placement and a share purchase plan to raise up to $3 million at $0.027 per share.
The company notes that proceeds from the capital raising will be used to fund the acquisition’s upfront cash consideration alongside mine start-up at Liontown, exploration, resource development, and general working capital.
Sunshine Metals is focused on advancing gold and base metals projects in North Queensland.
Write to Amy Rotman at Mining.com.au
Images: Sunshine Metals
