Sunstone’s Exploration Targets Pose Funding and Execution Challenges Ahead

El Palmar: A Platform for World-Scale Discovery

Sunstone Metals has reported a significant milestone with the release of its maiden Mineral Resource Estimate (MRE) at the El Palmar gold-copper project in northern Ecuador. The initial resource of 1.2 million ounces gold equivalent (AuEq) is based solely on the outcropping T1 porphyry target, one of five identified gold-copper porphyry deposits within the concession. This resource is supported by 21 drill holes and trenching, demonstrating a low strip ratio and strong potential for open pit mining.

Beyond the MRE, Sunstone has defined a high-conviction Exploration Target ranging from 15 million to 45 million ounces AuEq. This target, spanning 1.0 to 1.2 billion tonnes at grades between 0.3 to 0.7 g/t gold and 0.1% to 0.3% copper, underscores the project's potential to evolve into a world-class deposit. However, the company cautions that this target remains conceptual pending further exploration.

Bramaderos: New Discovery and Expanding Potential

At the Bramaderos project in southern Ecuador, Sunstone announced a new gold-copper porphyry discovery at the Copete target. Trench sampling revealed substantial mineralisation, including 113 meters at 0.64 g/t gold equivalent and 214 meters at 0.50 g/t AuEq. These results suggest a robust surface system with copper likely leached at surface, indicating higher grades may be encountered in upcoming drilling campaigns.

The Copete discovery extends the known mineralised cluster at Bramaderos to a 1.8-kilometer trend, adjacent to the existing Brama-Alba resource of 2.7 million ounces AuEq. The project also hosts a porphyry Exploration Target estimated between 3.3 and 8.6 million ounces AuEq, with additional epithermal targets at Limon. These findings collectively highlight Bramaderos as a significant exploration and development opportunity.

Strategic Partnerships and Financial Position

Sunstone is actively engaged in partnership discussions and due diligence processes aimed at accelerating exploration and resource growth at both El Palmar and Bramaderos. These talks are expected to bring in substantial financial and technical resources to unlock the full value of the projects.

Financially, the company strengthened its position by raising $6.5 million through a combination of institutional placement and a Share Purchase Plan in late 2024. Concurrently, Sunstone implemented cost reductions including workforce downsizing in Ecuador, management consolidation, and closure of its Brisbane office. As of December 31, 2024, the company held $2.3 million in cash, positioning it to fund near-term exploration and partnership activities.

Outlook and Next Steps

Sunstone Metals’ recent progress marks a pivotal phase in its exploration journey. The maiden resource at El Palmar and the new discovery at Bramaderos provide a solid foundation for future growth. The company’s focus will now be on advancing drilling programs to test the extensive Exploration Targets and finalising partnerships to enhance project development.

Investors and analysts will be watching closely as Sunstone navigates these next steps, balancing exploration success with financial discipline in a competitive sector.