Sunshine Metals (ASX:SHN) is moving its focus towards starting metallurgical studies, a resource update and mining studies at the Liontown prospect, part of the Ravenswood Consolidated Project in North Queensland.
Metallurgical testwork is required to upgrade Liontown’s resource from an inferred to indicated category. As part of the recently completed reverse circulation drilling program, metallurgical samples have been collected.
The mining study will be fast tracked and begin next month, once resource and metallurgical updates have been completed.
This news comes after Sunshine intersected further shallow gold mineralisation at Liontown via the completed drilling program.
Some of the assays have been received, including 3m @ 3.05 grams per tonne gold at surface; 5m @ 481g/t gold from 6m; and 3m @ 22.82g/t gold, 351g/t gold from 13m.
Managing Director Damien Keys says Liontown continues to demonstrate “fantastic” gold grades close to the surface.
Sunshine Metals, which has a market capitalisation of $27.13 million, conducted the drilling program to provide samples for testwork and tighten drill spacing to upgrade the existing resource.
Liontown’s resource contains 360,000 tonnes @ 1.8g/t gold and 26g/t silver for 21,000 ounces of gold and 307,000 ounces of silver.
Meanwhile, drilling at the Salla and Plateau targets has been completed. Assays are expected in early July.
At Salla, drilling comprised three holes for 562m, testing a coincident induced polarisation and gravity anomaly. At Plateau, 599m of drilling and metallurgical testing is required, to advance the resource classification.
The Plateau target has an inferred resource of 49,000 ounces @ 2g/t gold.
Sunshine’s strategy is to identify shallow (<50m), oxide gold resources for potential processing. The company aims to rapidly evaluate the commercial potential of these assets.
Sunshine Metals is a gold and copper-focused explorer with a portfolio of projects in Queensland, led by the Ravenswood Consolidated Project.
The company will be attending the Noosa Mining Investor Conference, held between 23-25 July, at the Peppers Noosa Resort.
Mining.com.au is an official media partner of this year’s conference.
Write to Aaliyah Rogan at Mining.com.au
Images: Sunshine Metals
