Sunstone Reports 4M Raise and 4Moz AuEq Resources Across Bramaderos and El Palmar

Sunstone Metals’ Strategic Momentum in Ecuador

Sunstone Metals Limited (ASX: STM) has delivered a robust quarterly update for March 2025, highlighting significant progress on both its exploration front and corporate strategy. The company’s focus remains firmly on unlocking the value of its substantial copper-gold discoveries in Ecuador, primarily through advancing potential partnerships and corporate transactions.

The company’s flagship projects, Bramaderos in southern Ecuador and El Palmar in the north, have both yielded maiden Mineral Resource Estimates (MREs) and compelling Exploration Targets, underscoring the scale and quality of these assets.

Resource Milestones and Exploration Potential

At El Palmar, Sunstone announced an inaugural MRE of 1.2 million ounces gold equivalent (AuEq) based on the near-surface T1 gold-copper porphyry target. This estimate is supported by 21 drill holes and trenching, revealing grades around 0.41g/t gold and 0.13% copper. Beyond T1, the company has identified a high-conviction Exploration Target ranging from 15 to 45 million ounces AuEq, spanning 1.0 to 1.2 billion tonnes at grades between 0.3g/t to 0.7g/t gold and 0.1% to 0.3% copper. This target includes multiple porphyry deposits and remains conceptual pending further drilling.

Similarly, the Bramaderos project boasts a JORC-compliant MRE of 2.7 million ounces AuEq at the Brama-Alba deposit, complemented by an Exploration Target of 3.3 to 8.6 million ounces AuEq within 255 to 360 million tonnes. The recent discovery of the Copete gold-copper porphyry target, with significant surface mineralisation confirmed by trench sampling, expands the mineralised footprint to a 1.8km cluster, enhancing the project’s open-pit development potential.

Corporate Developments and Funding

On the corporate front, Sunstone successfully raised $4 million (before fees) through an institutional placement at 0.5 cents per share, with $0.7 million received before quarter-end and the balance in early April. This capital injection supports ongoing exploration and due diligence activities. The company also implemented cost reductions, trimming expenditure by 24% compared to the previous quarter, with cash reserves standing at $0.9 million as of 31 March 2025.

Sunstone is actively engaged in due diligence with multiple parties, including global majors, exploring various transaction structures such as joint ventures, farm-outs, or corporate combinations. Notably, discussions have advanced to a stage where a non-binding indicative offer could be finalised shortly, subject to confirmatory diligence. Additionally, the company is evaluating a potential combination with a privately owned near-term gold development asset to complement its existing portfolio.

Exploration Outlook and Next Steps

Exploration activities during the quarter were focused on surface soil sampling and geological mapping, with drilling programs planned over the next two years, contingent on funding. The Verde Chico project acquisition, adjacent to El Palmar, further expands Sunstone’s landholding in northern Ecuador, enhancing its exploration pipeline.

Sunstone’s strategy to build a world-scale gold and copper resource inventory in Ecuador is supported by robust geological data and a growing interest from strategic partners. The company’s ability to convert Exploration Targets into Mineral Resources through systematic drilling will be critical in defining the full value of its assets.