Sunshine Metals (ASX:SHN) has announced the identification of shallow oxide gold resources at its Liontown prospect within the Ravenswood Consolidated Project in North Queensland. A recent reverse circulation drilling program, encompassing 29 drillholes over 1,834 meters, has yielded promising results, including an intersection of 10 meters at 31.91 grams per tonne gold from 41 meters, with a notable 2-meter section grading 121.5 grams per tonne gold from 46 meters. The drilling has tightened the oxide and transitional resource spacing to approximately 25m x 25m.
The company anticipates receiving assays from the remaining 13 drillholes in early June 2025. Following the completion of all assays, metallurgical samples will undergo analysis to facilitate an upgrade from inferred to indicated resource status. Historical mined voids, averaging 1-2 meters in width, were encountered during the drilling process, aligning with predicted locations. A refined void model will be constructed as part of the resource upgrade, scheduled for July 2025, paving the way for fast-tracked mining studies upon completion of metallurgical and resource upgrades.
Managing Director Damien Keys expressed enthusiasm over the “stunning” gold intersection, highlighting the historical significance of the Liontown mine, which commenced operations in 1905 and yielded an estimated 28,000 ounces of gold at a grade of 22 g/t. Sunshine Metals aims to capitalize on the current high gold prices, currently at US$3,377 per ounce (a 28.7% year-to-date increase), by evaluating the commercial potential of its assets and identifying shallow resources to meet market demand. The rise in gold prices is attributed to factors such as trade uncertainties between the US and China and the ongoing global cost of living crisis.
