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Sunshine Metals’ (ASX:SHN) latest drilling results from its QLD-based Ravenswood Project have seen a surge in liquidity for the nanocap stock, pushing it into the ranks of most popular stocks on HotCopper for Tuesday.
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Using Cboe live pricing data at 2pm AEST, shares had surged 15.8% – to 1.1cps. Beware the ides of the nanocap; Sunshine has two billion stocks on issue.
Still, it’s clear Sunshine has engendered a fresh wave of interest. Across the last four weeks, on average, Sunshine traded 5.5M shares each day.
On Tuesday, heading into afternoon trades, over 35.8M shares in Sunshine Metals had swapped hands. That’s how you get a 33% rise, even if only to 1.2cps. (Thank the amount of shares on issue for that one.)
While the company headlined its Tuesday news with the fact it hit 10m of gold at 31.9g/t gold from 41m depth at its Liontown prospect, part of Ravenswood, this finance journo can’t help but feel another result is probably of more immediate interest.
That was a 9m intersection hitting 6.3g/t gold from surface at Liontown – offering the tantalising prospect that relatively high-grade gold could be sitting there just waiting for auger drills.
Far more data is needed to confirm that theory, but this journo has seen enough to know the shallower the grade, the better.
(Then again, 40m is relatively shallow too, all things considered.)
To date, today’s data reflects roughly half of the assays pending – another 13 are still waiting to come back to the company.
Probably most noteworthy is that the company’s chief, Dr. Damien Keys, added an exclamation mark to his disclosure commentary.
“The stunning intersection of gold in the shallows of the Liontown Resource is a “Back to the Future” moment,” Keys wrote.
(Let’s be fair: It’s a pretty good movie.)
“Liontown began as a gold mine in 1905 with an estimated 28koz of gold mined at a grade of 22g/t. It is certainly reassuring that the first miners did not take all of the high-grade gold mineralisation!”
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Whether enthusiasm persists likely depends on the look and feel of future gold grade readouts – also on investors’ radars will be updated JORC resource(s), metallurgical testwork results, and a plan to fast-track further mining studies.
Still: The stock might need either more liquidity or a consolidation to truly entice the masses.
SHN last traded at 1.1cps in early afternoon trade.
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