New Liontown Dome Model Uncovers Six Targets; Drilling Kicks Off February 2025

Reinterpreting Liontown’s Geological Potential

Sunshine Metals Limited (ASX: SHN) has announced a compelling new geological interpretation of the Liontown prospect within its Ravenswood Consolidated Project in Queensland. The company’s geoscience team proposes that the Au-Cu-Zn prospective stratigraphic contact has undergone tight folding, forming a dome approximately 3.5 kilometres in length. This structural reinterpretation significantly reframes the exploration potential of the area, highlighting a sparsely drilled northern margin that could host extensions to the existing Liontown Resource.

Previously, the Liontown Resource was estimated at 6 million tonnes grading 3.6 grams per tonne gold equivalent (approximately 700,000 ounces AuEq). However, only about 2 kilometres of the 8-kilometre prospective contact has been drilled, leaving substantial ground untested. Sunshine Metals has identified six key targets, Tigertown, Cougartown, Cougartown West, Lynx, Liontown North, and Liontown East, situated on or adjacent to this newly interpreted dome structure.

Encouraging Historical Drilling and Upcoming Campaign

Historical drilling at these targets, though limited, has returned encouraging results. Notable intercepts include 17 metres at 3.05 g/t Au from 22 metres at Tigertown and 2 metres at 1.81 g/t Au with 9.54% Zn from 54 metres at Cougartown. Additionally, silver-rich zones have been intersected, with assays up to 796 g/t Ag, underscoring the polymetallic nature of the mineralisation.

Sunshine Metals plans to commence drilling at Tigertown in February 2025, marking the first phase of a broader exploration campaign aimed at testing the dome’s northern margin and other targets. The company’s Managing Director, Dr Damien Keys, emphasised the importance of this reinterpretation, stating that delineating key stratigraphic contacts is critical in volcanogenic massive sulphide (VMS) exploration and that the dome concept opens new avenues for resource growth.

Strategic Location and Project Scale

The Ravenswood Consolidated Project benefits from proximity to established mining infrastructure near Charters Towers, Queensland, a district with a rich history of gold and base metal production exceeding 20 million ounces of gold and 14 million tonnes of VMS ore. Sunshine Metals’ portfolio includes a 7 million tonne VMS resource grading 4.0 g/t Au (904koz AuEq) and 11.1% ZnEq, alongside numerous drill-ready targets. The Liontown dome adds a significant structural dimension to this portfolio, potentially unlocking new zones of mineralisation.

Geophysical data, including induced polarisation (IP) and magnetic surveys, support the dome interpretation, revealing fold closures and zones of low resistivity indicative of deeper weathering along the volcanic-sediment contact. Soil geochemistry further corroborates base metal anomalism at several prospects, reinforcing their priority status for upcoming drilling.

Looking Ahead: Exploration and Resource Growth Potential

Sunshine Metals’ exploration strategy for 2025 includes extending IP surveys to cover the western portions of the dome and conducting detailed mapping and sampling at undrilled targets like Lynx. The company’s methodical approach to testing these targets could materially enhance the resource base and provide new insights into the deposit’s structural controls.

While the reinterpretation is promising, the effectiveness of the drilling program and the eventual impact on resource estimates remain to be seen. The upcoming results from Tigertown will be a critical indicator of the dome’s mineralisation potential and could set the tone for further investment and exploration activity in the region.