Sunshine Metals Accelerates Liontown Drilling to Upgrade Shallow Oxide Gold Resources

Drilling Commences at Liontown

Sunshine Metals Limited (ASX: SHN) has initiated a reverse circulation (RC) drilling program at its Liontown prospect, part of the Ravenswood Consolidated Project in Queensland. The 29-hole campaign, totaling 1,765 meters, aims to upgrade the existing shallow oxide gold and silver resource from Inferred to Indicated status. This upgrade is critical for advancing metallurgical test work and underpinning future mining studies.

The current Liontown oxide resource stands at 360,000 tonnes grading 1.8 g/t gold and 26 g/t silver, equating to approximately 21,000 ounces of gold and 307,000 ounces of silver. The drilling will tighten drill spacing to about 25 by 25 meters, providing more confidence in resource continuity and quality. Assay results are expected in June 2025, following completion of drilling in early May.

Strategic Focus on Shallow Oxide Gold

Sunshine’s strategy is clear: accumulate shallow oxide gold resources within 50 meters of surface that can be processed efficiently at nearby toll treating mills. The proximity of toll mills at Black Jack and Pajingo offers a cost-effective pathway to production without the need for immediate capital-intensive infrastructure. Alongside Liontown, the company is prioritizing other oxide gold prospects including Plateau, Tigertown, and Coronation.

Plateau, with an inferred resource of 49,000 ounces at 2.0 g/t gold, is set for its own drilling and metallurgical testing program commencing in May 2025 under a farm-in agreement with Rockfire Resources. Tigertown remains an advanced exploration target where initial drilling will assess shallow gold potential, with positive results expected to trigger further studies.

Encouraging Results and Exploration at Coronation

Recent shallow RC drilling at Coronation has returned broad zones of anomalous gold and base metal mineralization, including zinc and lead. Although the shallow gold grades were lower than initial intercepts, the presence of a strong chargeability response from induced polarization (IP) surveys suggests potential massive sulphide mineralization at depth, analogous to the nearby Highway-Reward deposit.

Sunshine plans to follow up with electromagnetic (EM) surveys to refine these sulphide targets, which could represent significant copper-gold mineralization. This exploration complements the oxide gold focus and adds a valuable base metal dimension to the Ravenswood project portfolio.

Geological and Operational Context

The Liontown and surrounding prospects are hosted within a volcanogenic massive sulphide (VMS) system, a prolific style of mineralization known for copper, zinc, lead, gold, and silver. Historical underground workings at Liontown, mined in the early 1900s, intersected high-grade gold zones, which current drilling aims to delineate and incorporate into the resource model.

Sunshine holds secure tenure over the project area, with mining leases and exploration permits in good standing. The company also manages royalty obligations to Osisko Ventures and Guandong Guangxin Mine Resources Group, which are standard for the region.

Looking Ahead

Sunshine Metals is entering a busy phase with multiple milestones expected over the coming months. Key upcoming events include assay results from Liontown drilling, commencement of Plateau drilling, metallurgical test outcomes, and initiation of a mining study at Liontown. These developments will be pivotal in validating the commercial potential of Sunshine’s shallow oxide gold strategy and advancing the Ravenswood Consolidated Project towards production.