Sunshine Metals (ASX:SHN) seeks to determine the metallurgical and physical recoveries of existing oxide gold-silver resources at the Liontown prospect, part of the Ravenswood Project in Queensland.
This work will be achieved through a shallow reverse circulation drilling program, comprising 29 holes for 1,765m. The program will provide samples for metallurgical testwork and upgrade the existing inferred resource to indicated status.
Liontown’s existing resource totals 21,000 ounces of gold and 307,000 ounces of silver @ 1.8 grams per tonne gold and 26/gt silver.
Sunshine, which has a market capitalisation of $15.87 million, expects to complete the program early next month, with assays to be returned in June 2025.
Managing Director Dr Damien Keys says this phase of drilling is critical in determining the metallurgical and physical recoveries of Liontown’s resource.
“Sunshine is committed to fast-tracking development of near-surface gold resources to capitalise on current gold prices,” Keys says.
According to Trading Economics, gold prices reversed early losses, ticking higher to around US$3,350 ($5,209.16) per ounce yesterday (28 April). The precious metals’ spot price currently sits at US$3,327 per ounce, as of 11am (AEST).
At the Coronation deposit, the next phase of work will seek to refine the broad induced polarisation anomalies with electromagnetic surveys.
Sunshine says its strategy involves identifying shallow oxide gold resources for processing at potential nearby toll treating mills. The company is targeting the Tigertown, Coronation, Liontown, and Plateau prospects.
Liontown is the most advanced of the targets, while Plateau represents an advanced target with an inferred resource of 49,000 ounces @ 2g/t gold.
To advance the resource classification, 1,000m of drilling and metallurgical testing is required. This work is expected to begin next month.
Sunshine Metals is a gold and copper-focused explorer with a portfolio of projects in Queensland.
The company will be attending the RIU Sydney Resources Round-up being held from 6-8 May. Mining.com.au is an official media partner at this year’s event.
Write to Aaliyah Rogan at Mining.com.au
Images: Sunshine Metals
