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Microcap Sunshine Metals shares soar after thick high grade QLD gold hit

ASX News, Materials
ASX:SHN      MCAP $28.57M
24 November 2023 14:04 (AEST)

Managing Director Damien Keys and Exploration Manager, Matt Price at Keans prospect. Source: Sunshine Gold

Sunshine Metals (SHN) share price soared over 70 per cent on Friday following a 17 metre high grade gold hit.

The RC rig intersect assayed for 22.14 grams per tonne (g/t) of gold, satisfying high grade qualification by anybody’s yardstick.

Sunshine also hit 2 metres at 8.99g/t from 20 metres and a 1 metre pocket at 4.54g/t was also flagged.

These assays came from the Liontown prospect, part of the company’s Ravenswood Consolidated Project.

Feeder system success

The results have Sunshine Metals’ geotechs confident their new geological model for the Liontown project acreage is already paying dividends. Metaphorical, of course.

“The stunning intercepts at Liontown are a great reward for the solid geological work completed by the team,” Sunshine Managing Director Dr Damien Keys said.

“The decision was made to target… feeder zones to the Liontown Resource with a high impact, shallow RC program.”

High grade copper is also believed to be present in considerable volumes underground.

Copper sulphate potential

Sunshine Metals also announced on Friday intersecting chalcopyrite, a common host rock for copper sulphate.

Assays on that material are due back in the coming weeks and months.

The prospective new feeder zones Keys added, have “not been recognised by past explorers.”

JORC upgrade on radar

Drilling results from nearby the successful drill hits reported today – some thirty metres away – will also inform geotechnical understanding of the size and position of underground mineralisation.

Management hinted towards an upgrade of the existing JORC resource at the Liontown prospect.

Sunshine also remains hopeful that the Waterloo and Orient prospects will turn up like-for-like results.

SHN shares last traded at 1.9c.

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