Sunstone Metals (ASX:STM) has identified a ‘large’ and ‘high-grade’ gold-silver target that it says warrants drill testing at its El Palmar Project in northern Ecuador.
The $46.22 million market capitalisation company says the target is interpreted to cover an area of 600m by 400m.
Sunstone completed channel and rock chip sampling at El Palmar that returned values of up to 6.2 grams per tonne (g/t) gold and 269g/t silver from an epithermal vein zone northwest of the T1 deposit along the northwest- and northeast-trending faults in the area.
Sunstone Metals Managing Director Malcolm Norris says these channel and rock chip sampling results highlight ‘high-grades’ and ‘significant’ scale.
“This is a highly promising result with immense upside.
“This is a highly promising result with immense upside”
We will now move quickly to prepare it for drilling in the new year.”
The company says areas with ‘higher-grade’ gold and silver correlate with linear areas of mapped argillic alteration, which suggests a structurally controlled system with multiple target areas across a ‘large’ area.
Following today’s (23 November) announcement, Sunstone’s share price is up 6.66% at $0.016 as of 11:00am AEDT.
Sunstone Metals is a gold and copper explorer focused on its assets in Ecuador. The El Palmar project covers 790 hectares and lies in the Imbabura province.
As of 30 September 2023, the company had $4.9 million cash at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: Sunstone Metals
