Sunshine Metals (ASX:SHN) has completed a reverse circulation grade control drill program at its Liontown Gold Project in North Queensland.
Final grade control drilling assays returned a shallow, ‘high-grade’ result of 14 metres at 12.38 grams per tonne of gold.
Sunshine initially planned to drill 84 holes, spanning 3.33km. However, the discovery and development company expanded the number of holes to 121 (5.19km) due to early ‘high-grade’ gold and silver results.
The outcome further supports mine planning and improves resource confidence for the proposed open pit.
The Liontown gold panel is estimated to contain a resource of 247 kilotonnes at 7.35g/t of gold, as well as 11g/t of gold for 58.2 kilo ounces (Koz) of gold and 87 Koz of silver.
Further assays from the gold panel are expected to be carried out in May 2026. Assay results will be incorporated in an updated Liontown resource that is due in the June 2026 quarter.
Updated resource and additional metallurgical data will form the basis for a revised Liontown
Mining Study that is due to begin in June 2026.
“We are thrilled to have final assays for the grade control program at Liontown, which targeted the shallow gold component of the resource… [and] the results have been outstanding throughout and have highlighted the gold and silver potential of the open pit,” Sunshine Managing Director Damien Keys says.
“We eagerly await the remaining results which, together with all drilling from these programs, will be used to update and upgrade the resource during this quarter.”
On the sidelines of the Gold Coast Gold Conference last month, Keys revealed the project mining study is complete and drilling results suggest the mineral resource could cover a larger-than-expected area.
“Only 8% of the resource went into the mining study [and] it is the gold and silver rich portion of the deposit that is amenable to our conventional carbon-in-leach gold treatment,” he tells Mining.com.au.
“We have about 75 tunnels’ worth back out of a 120-hole program. The best number there is 30 metres and 6.68 gram per tonnes of gold and 528 g/t of silver … [and] we still have 50-odd holes to release to market as they come back.”
The Liontown gold deposit is expected to create major cash flow. This is partly due to record-high gold spot prices that have jumped 60% to more than US$4,666 ($6,783) an ounce, according to the ABC Bullion website.
“Such a volatile market has been tough but we have landed on $6,500 for gold per ounce, and that is pretty close to the mark in this period of volatility, and shows we can make really good returns — it is fantastic,” he tells this news service.
“[Liontown] has a four-year mine life, generating $163 million of free cash flow at the study parameters after capital [expenses].”
Sunshine Metals is a discovery and development company with assets mostly in North Queensland.
Write to Richard Szabo at Mining.com.au
Images: Sunshine Metals
