Sunshine Metals (ASX:SHN) reports an updated Mining Study for its Liontown Gold Project in North Queensland, delivering ‘stronger’ economics than the February 2026 study.
The study outlines production of about 80,000 ounces of gold (Au) @ 2.59 grams per tonne and 952,000 ounces of silver (Ag) @ 30.99g/t Ag through a multi-stage open pit and underground operation over 66 months.
Net operating cash flow after all capital increases 10% to $179.8 million, while all-in sustaining costs fall 6% to $2,579 per ounce of gold. Gross revenue is forecast at $497.5 million from 79,541 ounces of mined gold and 951,732 ounces of mined silver, with maximum cash drawdown of $5.5 million.
The study assumes gold and silver prices of $6,500 and $100 per ounce, respectively.
Managing Director Damien Keys says the study delivers “stronger economics with modest capital requirements”.
“This updated Liontown Mining Study is another positive step forward for Sunshine in our transition to a sustainable gold and base metals producer and self-funded explorer,” Keys adds.
“Our recent acquisition of the Mt Moss mill and rapid development progress underpin our goal to be a long-term player in the district, on track for first gold in mid-2027.”
The study incorporates the July 2026 mineral resource estimate and considers 1 million tonnes (Mt) @ 3.8g/t Au for 122,600 ounces and 29.9g/t Ag for 975,000 ounces. The production target comprises 84% measured and indicated resources and 16% inferred.
Mining will run through three open pit stages over 27 months, followed by underground extraction from the ‘high-grade’ Au Panel over 42 months. The Au Panel contains 63,800 ounces of Au and 96,700 ounces of Ag.
Underground mining will use longhole stoping on 22m sublevels with cemented rockfill, rockfill, and open stoping with rib pillars. Ore will be processed at the company’s Mt Moss mill, currently under refurbishment.
Metallurgical test work shows rapid leach kinetics, with more than 90% gold recovery in two hours. Combined gravity and leach extractions range 86–96% for gold, depending on the domain.
The study indicates project payback of about four months, with life-of-mine capital totalling $56 million. Mining and environmental approvals are well advanced, and early contractor engagement is underway to support a mid-2027 commencement.
Sunshine plans a Liontown base metal Mining Study in October 2026, targeting the remaining 86% of the broader 7.3Mt resource. The company held $20.6 million cash at 30 June 2026.
Sunshine Metals is an Australian explorer advancing a portfolio of gold and polymetallic assets.
Write to JC Villarba at Mining.com.au
Images: Sunshine Metals
