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SUNSTONE METALS LTD Capital/Financing Update 2023
65870_rns_2023-10-17_d4dda28c-82b1-4827-8f99-cb70b6caf230.pdf
Capital/Financing Update
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18 OCTOBER 2023
Limon Gold-Silver Discovery, Southern Ecuador Outstanding 269m intersection at 1.05g/t AuEq* with high-grade zones up to 66g/t Au
Latest exceptional results double known width of Limon central shoot to 125m; Mineralisation in central shoot outlined over +100m strike and to 250m deep; Exploration Target set for this quarter
Key Points
- Drilling doubles known true width of Limon central shoot to ~125m; Limon sits within the wider Bramaderos project
- Results from hole LMDD040 include:
- o 269m at 1.05g/t AuEq* (0.82g/t gold and 18.5g/t silver) from 74m, including:
- 124m at 1.93g/t AuEq* (1.54g/t gold and 31.8g/t silver) from 190m, including:
- 11.0m at 14.15g/t AuEq* (12.33g/t gold and 149.3g/t silver) from 280m
- 124m at 1.93g/t AuEq* (1.54g/t gold and 31.8g/t silver) from 190m, including:
- o 269m at 1.05g/t AuEq* (0.82g/t gold and 18.5g/t silver) from 74m, including:
- Peak assays in LMDD040 at 283-284m of 66g/t gold and 898g/t silver
- Central shoot measuring ~125m by >100m, by > 250m
- Central shoot is surrounded by additional multiple mineralised structures, with significant grade, over an extent of 800m x 300m and open
- Intersections in the central shoot to date include:
- o 176.7m at 1.09g/t AuEq* from 6.8m in LMDD017
- o 185m at 2.85g/t AuEq* from 90m in LMDD026, including
- 31m at 12.93g/t AuEq* from 146m
- o 243m at 1.32g/t AuEq* from 46m in LMDD030
- o 180.1m at 0.96g/t AuEq from 6m in LMDD038
Sunstone Metals Ltd (ASX: STM) is pleased to report an outstanding 269m-long intersection of 1.05g/t AuEq at its Limon gold-silver discovery in southern Ecuador.
_____________________________________________________________________________ *The gold equivalent calculation formula is AuEq(g/t) = Au(ppm) + (Ag (ppm)/82). The prices used were US$1,800/oz gold and US$22/oz silver. Recoveries are estimated at 90% for gold and 90% for silver from metallurgical studies. In Sunstone's opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold.
1 See qualifying statements in the About Sunstone Metals section on page 12.
The result increases the size of the Limon discovery significantly as it doubles the known true width of the central shoot to ~125m. Drill hole LMDD040 was drilled at right angles to many of the previous holes and therefore has a significant impact on the scale of the high-grade Limon gold-silver mineralisation. The lateral scale of the central shoot at Limon is currently more than 100m with a vertical extent of at least 250m (Figures 1, 2 and 3). The central shoot is in turn, based on drilling to date, surrounded by additional multiple mineralised structures, with significant grade, over an extent of at least 800m x 300m (Figures 3 and 4; see ASX announcement dated 12 October 2023).
More broadly the drilled gold-silver epithermal system is within the 1.7km x 700m Limon alteration zone, which hosts potential for additional gold-silver mineralised bodies (Figure 4).
Sunstone Managing Director Malcolm Norris said the latest results showed Limon was a large, shallow discovery which is continuing to grow.
"This latest intersection significantly expands the dimensions of Limon, which now has key scale similarities with many open pit gold operations," Mr Norris said.
"We have numerous wide intersections of more than 1g/t AuEq with zones of high-grade mineralisation. These zones are returning very high peak gold and silver assays which show Limon is a multi-ounce per tonne system in some areas.
"These results will help underpin the Limon Exploration Target planned for later this quarter. We believe this will demonstrate the potential for a substantial open pit development at Limon, which will in turn pave the way for a very large gold-copper-silver development across the wider Bramaderos project which houses the Limon, Brama, Alba, and Melonal mineralised systems".
Figure 1: Cross-section 1 - SSW-NNE cross-section through the Limon epithermal system, showing the main central shoot is around 125m wide in true width, with mineralisation extending to surface and open to depth down plunge. See Figure 3 for location of sections.
Figure 2: Cross-section 2 – WNW-ESE cross-section through the Limon epithermal system, showing mineralisation extending to surface and open to depth down the plunge of the shoot which trends off section. See Figure 3 for location of sections.
Limon is a significant discovery and it continues to grow with every round of drilling and assays. There is now abundant evidence to demonstrate that the orebody has every potential to deliver a significant standalone operation or a starter pit opportunity for the large-tonnage Bramaderos porphyry development.
The Limon epithermal gold and silver deposit is not included in the December 2022 2.7Moz AuEq Mineral Resource estimate or the 3.3 – 8.6Moz AuEq Exploration Target at Bramaderos (see 'About Sunstone' on page 12 of this announcement).
The current drill program has been completed and the rigs are now on stand-by while all assays are received, compiled, and interpreted. Additional assays will be received during November.
The Limon target area is located 2.7km north-east of the Brama-Alba-Melonal gold-copper deposits. The Bramaderos Project currently hosts a porphyry Mineral Resource estimate of 2.7Moz AuEq at Brama-Alba, and an Exploration Target of between 3.3Moz and 8.6Moz AuEq within 255 to 360Mt at a grade between 0.40 and 0.74g/t AuEq (Figure 3; see ASX announcement dated 13 December 2022, and qualifying statements in the 'About Sunstone Metals' section on page 10 of this announcement).
Figure 3: Limon epithermal gold-silver system in plan view, showing multiple mineralised structures in green. Highgrade domains are at intersections of NE and WNW trending structures. Several additional targets have been defined based on gold-in soil and zinc-in-soil anomalies, and structural interpretation. See Figure 4 for a broader context within the very large Limon target area.
Figure 4: Limon gold in soils map showing extensive anomalous gold over an area of 1.7km x 700m. The black circled areas have seen partial testing. Red circled areas show the multiple epithermal gold-silver targets, and most are scheduled for trenching during 2023.
About Bramaderos
The Bramaderos project straddles the Pan American highway (Figure 4), and is close to available hydroelectric power, supporting the economics of potential development opportunities. Ecuador sources 93% of its power from renewables and is ideally placed to participate in the global demand for clean energy sourced metals. The project is also supported by nearby commercial airports and significant cities (Loja, population 200,000) and has strong community support. The project area is covered by 3 valid concessions and exploration plans are in place to continue to explore multiple gold-silver epithermal and gold-coppersilver porphyry opportunities.
| From | To (m) | Interval | AuEq | Au | Ag | Zn | Cu | ||
|---|---|---|---|---|---|---|---|---|---|
| Drill Hole | EOH (m) | (m) | (m) | (g/t) | (g/t) | (g/t) | (%) | (%) | |
| LMDD040 | 407.50 | 15.0 | 17.0 | 2.0 | 1.05 | 1.01 | 2.9 | 0.03 | 0.02 |
| 74.0 | 343.0 | 269.0 | 1.05 | 0.82 | 18.5 | 0.29 | 0.02 | ||
| incl. | 78.0 | 80.0 | 2.0 | 1.80 | 0.92 | 72.2 | 0.89 | 0.15 | |
| and | 190.0 | 314.0 | 124.0 | 1.93 | 1.54 | 31.8 | 0.15 | 0.01 | |
| incl. | 191.0 | 217.0 | 26.0 | 1.53 | 1.21 | 26.1 | 0.27 | 0.01 | |
| incl. | 212.3 | 213.0 | 0.7 | 9.73 | 8.53 | 98.2 | 0.08 | 0.01 | |
| and | 256.0 | 265.5 | 9.5 | 1.07 | 0.69 | 30.9 | 0.06 | 0.01 | |
| and | 280.0 | 291.0 | 11.0 | 14.15 | 12.33 | 149.3 | 0.02 | 0.00 | |
| incl. | 283.0 | 285.0 | 2.0 | 72.04 | 62.95 | 745.5 | 0.01 | 0.00 | |
| and | 304.0 | 314.0 | 10.0 | 1.37 | 0.66 | 58.0 | 0.09 | 0.01 | |
| and | 328.0 | 332.5 | 4.5 | 0.64 | 0.52 | 9.8 | 0.29 | 0.10 | |
| 364.8 | 365.8 | 1.0 | 0.26 | 0.14 | 10.1 | 0.03 | 0.54 | ||
| LMDD039 | 340.84 | 72.0 | 75.0 | 3.0 | 0.21 | 0.17 | 3.4 | 0.002 | 0.00 |
| 88.0 | 90.0 | 2.0 | 0.35 | 0.27 | 6.9 | 0.03 | 0.00 | ||
| 94.5 | 99.0 | 4.5 | 1.20 | 0.94 | 21.3 | 2.57 | 0.27 | ||
| 177.0 | 179.0 | 2.0 | 0.59 | 0.47 | 9.7 | 1.11 | 0.02 | ||
| 183.0 | 188.0 | 5.0 | 0.35 | 0.31 | 3.1 | 0.07 | 0.00 | ||
| 207.0 | 209.0 | 2.0 | 0.60 | 0.51 | 7.5 | 0.59 | 0.01 | ||
| 211.0 | 212.0 | 1.0 | 1.11 | 1.05 | 4.9 | 0.53 | 0.00 | ||
| 279.0 | 280.0 | 1.0 | 0.59 | 0.56 | 2.7 | 0.37 | 0.01 | ||
| 282.0 | 284.0 | 2.0 | 0.42 | 0.22 | 16.3 | 1.59 | 0.02 | ||
| LMDD038 | 312.58 | 6.0 | 186.1 | 180.1 | 0.96 | 0.87 | 7.7 | 0.22 | 0.01 |
| incl. | 6.0 | 74.0 | 68.0 | 0.57 | 0.51 | 4.8 | 0.29 | 0.03 | |
| incl. | 29.0 | 34.0 | 5.0 | 1.07 | 1.04 | 2.4 | 0.41 | 0.07 | |
| incl. | 51.6 | 59.6 | 8.0 | 1.13 | 1.06 | 5.5 | 0.05 | 0.00 | |
| incl. | 61.6 | 64.0 | 2.5 | 1.14 | 1.05 | 7.4 | 0.44 | 0.01 | |
| incl. | 69.0 | 71.0 | 2.0 | 1.09 | 0.81 | 23.2 | 1.13 | 0.07 | |
| 82.0 | 86.0 | 4.0 | 0.26 | 0.22 | 3.1 | 0.86 | 0.01 | ||
| 98.0 | 186.1 | 88.1 | 1.50 | 1.36 | 11.6 | 0.17 | 0.00 | ||
| incl. | 99.0 | 107.0 | 8.0 | 4.43 | 3.72 | 58.5 | 0.79 | 0.01 | |
| incl. | 102.0 | 107.0 | 5.0 | 6.27 | 5.29 | 80.6 | 1.07 | 0.01 | |
| and | 112.0 | 122.6 | 10.6 | 1.78 | 1.59 | 15.4 | 0.05 | 0.00 | |
| and | 136.0 | 144.0 | 8.0 | 2.10 | 2.07 | 2.1 | 0.01 | 0.00 | |
| incl. | 138.0 | 140.0 | 2.0 | 6.53 | 6.48 | 4.3 | 0.03 | 0.00 | |
| and | 150.0 | 166.0 | 16.0 | 2.83 | 2.66 | 14.3 | 0.14 | 0.00 | |
| incl. | 158.0 | 163.4 | 5.3 | 5.74 | 5.41 | 27.4 | 0.16 | 0.00 | |
| incl. | 158.0 | 159.0 | 1.0 | 16.51 | 15.30 | 98.8 | 0.24 | 0.00 | |
| LMDD037 | 303.17 | 33.0 | 40.0 | 7.0 | 0.20 | 0.19 | 0.6 | 0.00 | 0.01 |
220.0 221.0 1.0 0.26 0.26 0.1 0.00 0.01
18.0 22.0 4.0 0.17 0.15 1.5 0.49 0.05 40.0 44.0 4.0 0.19 0.18 0.7 0.08 0.02 180.3 186.3 6.0 0.20 0.19 0.8 0.01 0.11
LMDD036 235.70 7.0 8.0 1.0 0.54 0.52 1.8 0.12 0.02
Table 1: Summary of mineralised epithermal intersections in selected Limon drill holes. AuEq is calculated using gold and silver only, there is no contribution from base metals.
| LMDD035 | 237.48 | 51.0 | 146.0 | 95.0 | 0.58 | 0.52 | 4.5 | 0.04 | 0.02 |
|---|---|---|---|---|---|---|---|---|---|
| 71.8 | 77.8 | 6.0 | 3.30 | 2.70 | 48.9 | 0.10 | 0.03 | ||
| 98.0 | 101.1 | 3.1 | 0.99 | 0.98 | 1.1 | 0.03 | 0.01 | ||
| 120.0 | 128.0 | 8.0 | 1.02 | 1.01 | 1.2 | 0.01 | 0.00 | ||
| 183.0 | 204.1 | 21.1 | 0.54 | 0.52 | 1.3 | 0.12 | 0.00 | ||
| LMDD033 | 277.86 | 0.0 | 10.0 | 10.0 | 0.21 | 0.17 | 3.2 | 0.01 | 0.01 |
| 16.0 | 20.0 | 4.0 | 0.29 | 0.28 | 1.1 | 0.06 | 0.01 | ||
| 261.4 | 272.0 | 10.6 | 2.34 | 2.33 | 0.6 | 0.01 | 0.02 | ||
| 261.4 | 262.5 | 1.1 | 2.48 | 2.47 | 0.9 | 0.01 | 0.09 | ||
| 270.0 | 272.0 | 2.0 | 9.35 | 9.35 | 0.1 | 0.01 | 0.00 | ||
| LMDD032 | 343.26 | 6.0 | 215.0 | 209.0 | 0.58 | 0.51 | 5.7 | 0.23 | 0.02 |
| 26.0 | 41.0 | 15.0 | 0.77 | 0.65 | 9.8 | 0.35 | 0.08 | ||
| 76.0 | 84.0 | 8.0 | 1.50 | 1.40 | 8.5 | 0.30 | 0.03 | ||
| 106.0 | 115.0 | 9.0 | 1.05 | 0.94 | 8.6 | 0.15 | 0.00 | ||
| 141.0 | 145.0 | 4.0 | 1.10 | 1.03 | 5.4 | 0.07 | 0.00 | ||
| 155.0 | 167.2 | 12.2 | 1.76 | 1.59 | 13.8 | 0.23 | 0.01 | ||
| 159.9 | 165.8 | 5.8 | 2.66 | 2.50 | 13.0 | 0.31 | 0.00 | ||
| 176.4 | 188.5 | 12.2 | 1.38 | 1.23 | 12.1 | 0.07 | 0.00 | ||
| 184.5 | 188.5 | 4.0 | 2.98 | 2.68 | 24.6 | 0.10 | 0.00 | ||
| LMDD031 | 397.13 | 6.0 | 161.0 | 155.0 | 0.47 | 0.37 | 7.9 | 0.59 | 0.03 |
| incl. | 17.4 | 20.3 | 2.9 | 1.61 | 1.32 | 24.0 | 2.13 | 0.09 | |
| and | 41.0 | 49.0 | 8.0 | 1.99 | 1.69 | 24.3 | 0.61 | 0.03 | |
| and | 106.5 | 125.0 | 18.5 | 1.17 | 0.89 | 22.9 | 0.26 | 0.04 | |
| 175.0 | 181.0 | 6.0 | 0.22 | 0.17 | 4.0 | 0.89 | 0.05 | ||
| 195.0 | 200.2 | 5.2 | 0.12 | 0.05 | 5.7 | 0.94 | 0.04 | ||
| 295.2 | 328.7 | 33.5 | 0.15 | 0.11 | 3.4 | 1.83 | 0.05 | ||
| LMDD030 | 406.25 | 46.0 | 289.0 | 243.0 | 1.32 | 1.11 | 16.9 | 0.36 | 0.02 |
| 48.0 | 224.0 | 176.0 | 1.49 | 1.27 | 18.0 | 0.22 | 0.01 | ||
| 152.0 | 194.0 | 42.0 | 3.90 | 3.37 | 43.3 | 0.29 | 0.01 | ||
| LMDD026 | 334.30 | 90.0 | 275.0 | 185.0 | 2.85 | 2.67 | 15.0 | 0.50 | 0.02 |
| 106.0 | 207.0 | 101.0 | 4.88 | 4.65 | 18.9 | 0.14 | 0.00 | ||
| 146.0 | 177.0 | 31.0 | 12.93 | 12.53 | 32.7 | 0.16 | 0.00 | ||
| 171.4 | 179.0 | 7.6 | 42.69 | 42.15 | 43.9 | 0.26 | 0.01 | ||
| 201.0 | 207.0 | 6.0 | 2.60 | 2.38 | 18.2 | 0.19 | 0.00 | ||
| 235.0 | 252.0 | 17.0 | 1.01 | 0.59 | 34.3 | 1.81 | 0.10 | ||
| 268.0 | 275.0 | 7.0 | 1.11 | 0.92 | 15.6 | 2.78 | 0.20 | ||
| LMDD017 | 214.92 | 6.8 | 183.5 | 176.7 | 1.09 | 0.97 | 10.1 | 0.20 | 0.11 |
| incl. | 81.2 | 96.2 | 15.0 | 4.00 | 3.91 | 7.69 | 0.34 | 0.01 | |
| incl. | 81.2 | 82.9 | 1.7 | 22.28 | 22.20 | 6.8 | 0.09 | 0.00 | |
| and | 157.5 | 183.5 | 26.0 | 2.46 | 2.02 | 36.2 | 0.14 | 0.00 |
Figure 5: Bramaderos concession showing the location of Limon and other gold-copper porphyry (yellow) and goldsilver epithermal targets (orange). The background image is gold-in-soil highlighting the potential scale increase to be delivered with more drilling at Bramaderos across multiple targets. Drilling activity during 2023 has been focussed on the Limon gold-silver epithermal opportunity.
Figure 6: Location of Sunstone's Bramaderos and El Palmar projects, Ecuador.
| Drill HoleNumber | Easting(PSAD56) | Northing(PSAD56) | RL (m) | Dip(degrees) | Azimuth (PSAD56 Grid)(degrees) | EOH (m) |
|---|---|---|---|---|---|---|
| LMDD030 | 635020.368 | 9551070.371 | 919.359 | -70 | 303 | 406.25 |
| LMDD031 | 635021.456 | 9551070.536 | 919.286 | -80 | 330 | 397.13 |
| LMDD032 | 634842.587 | 9551146.089 | 863.942 | -55 | 105 | 343.26 |
| LMDD033 | 634717.431 | 9551358.275 | 902.284 | -45 | 199 | 277.86 |
| LMDD034 | 634842.333 | 9551145.384 | 863.91 | -55 | 120 | 346.10 |
| LMDD035 | 634889.235 | 9550978.497 | 887.91 | -50 | 330 | 237.48 |
| LMDD036 | 634848.567 | 9551146.506 | 863.756 | -45 | 263 | 235.70 |
| LMDD037 | 634889.702 | 9550976.625 | 887.794 | -65 | 286 | 303.17 |
| LMDD038 | 634842.58 | 9551146.291 | 863.798 | -55 | 95 | 312.58 |
| LMDD039 | 635139.27 | 9550960.247 | 899.685 | -45 | 142 | 340.84 |
| LMDD040 | 635004.168 | 9551183.445 | 945.382 | -63 | 202 | 407.5 |
| LMDD041 | 635085 | 9550855 | 901 | -45 | 152 | 398.43 |
| LMDD042 | 634572 | 9551431 | 877 | -35 | 264 | 359.26 |
| LMDD043 | 635072 | 9551003 | 898 | -35 | 290 | 370.03 |
Table 2: Limon drill hole location details for LMDD030 – 043. Collars for holes up to LMDD040 have been surveyed with differential GPS.
For further information, please visit www.sunstonemetals.com.au
Mr Malcolm Norris Managing Director Sunstone Metals Ltd Tel: 07 3368 9888 Email: [email protected]
Media: Paul Armstrong Read Corporate +61 8 9388 1474
About Sunstone Metals
Sunstone has an advanced portfolio of exploration projects in Ecuador. The portfolio comprises:
- The Bramaderos Gold-Copper Project where Sunstone owns an 87.5% interest, and SolGold Canada, Inc. (formerly Cornerstone Capital Resources) a subsidiary of SolGold, holding 12.5% (loan carried through to start of commercial production) (see ASX announcement dated 10th April 2017, 28th August 2019, and 7 January 2020). The Bramaderos gold-copper project is located in Loja province, southern Ecuador, and is highly prospective for the discovery of large porphyry goldcopper systems, and high-grade epithermal gold systems. The Bramaderos concession is host to multiple fertile mineralised systems with significant discovery potential.
The Brama-Alba deposit, within the Bramaderos concession contains an initial Mineral Resource estimate of 156Mt at 0.53g/t AuEq for 2.7Moz gold-equivalent*. In addition to this is the Bramaderos project Exploration Target of between 3.3Moz and 8.6Moz AuEq within 255 to 360Mt at a grade between 0.40 and 0.74g/t AuEq (see ASX release dated December 13, 2022).
| JORCClassification | Tonnage(Mt) | Au(g/t) | Cu(%) | Ag(g/t) | AuEq(g/t) | AuEq(Mozs) |
|---|---|---|---|---|---|---|
| Indicated | 9 | 0.38 | 0.09 | 1.1 | 0.53 | 0.2 |
| Inferred | 147 | 0.35 | 0.11 | 1.3 | 0.53 | 2.5 |
| Total | 156 | 0.35 | 0.11 | 1.3 | 0.53 | 2.7 |
The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement for the Mineral Resource estimate and Exploration Target referred to above and, that all material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.
The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Mineral Resource for the target area reported. It is uncertain if further exploration will result in the estimation of a Mineral Resource.
*The gold equivalent calculation formula is AuEq(g/t) = (Au grade x Au price x Au recov / 31.1035) + (Ag grade x Ag price x Ag recov / 31.1035) + (Cu grade x Cu price x Cu recov / 100)) / (Au price x Au recov / 31.1035). The prices used were US$1,800/oz gold and US$9,500/t copper and US$22/oz silver. Recoveries are estimated at 89% for gold, 85% for copper, and 60% for silver based on metallurgical studies. In Sunstone's opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold.
- The El Palmar Copper-Gold Project where Sunstone holds 70% of the highly prospective 800ha El Palmar gold-copper porphyry project in Ecuador. Sunstone can acquire 100% through a Staged Acquisition Agreement. A Staged Acquisition Agreement to acquire the nearby Verde Chico Project has also been signed. The El Palmar and Verde Chico gold-copper projects are located in Imbabura province, northern Ecuador, within the same geological belt that includes the giant Alpala, Tandayama-America and Llurimagua porphyry copper-gold and copper-molybdenum deposits.
Competent Persons Statement
The information in this report that relates to exploration results is based upon information reviewed by Dr Bruce Rohrlach who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Rohrlach is a full-time employee of Sunstone Metals Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Dr Rohrlach consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Mr Malcolm Norris, Managing Director of Sunstone Metals Ltd., has authorised this announcement to be lodged with the ASX.
| ORC Code explanation | Commentary | |
|---|---|---|
| Samplingtechniques | • Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industry standardmeasurement tools appropriate to the minerals underinvestigation, such as downhole gamma sondes, orhandheld XRF instruments, etc.). These examples shouldnot be taken as limiting the broad meaning of sampling. | • The results announced here are from diamond drillingsamples. The drill core sampling was carried out usinghalf core, generally at 1-2m intervals. |
| Include reference to measures taken to ensure sample$\bullet$representivity and the appropriate calibration of anymeasurement tools or systems used. | · Core recovery was good, and core aligned prior tosplitting. | |
| Aspects of the determination of mineralisation that areMaterial to the Public Report. In cases where 'industrystandard' work has been done this would be relativelysimple (e.g. 'reverse circulation drilling was used toobtain 1 m samples from which 3 kg was pulverised toproduce a 30 g charge for fire assay'). In other cases,more explanation may be required, such as where thereis coarse gold that has inherent sampling problems.Unusual commodities or mineralisation types (e.g.submarine nodules) may warrant disclosure of detailedinformation. | · Diamond drilling, rock chip and channel samplingpoints have been guided by geological mapping. Thedrill samples from Limon were dried, crushed to 70%passing 2mm, Split 1000g and pulverised to 85%passing 75microns. A 20g portion of this sample wasused for multi-element analysis (IMS-230) and a 30gsample for Fire Assay Au (FAS-111). | |
| Drillingtechniques | · Drill type (eg core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc) anddetails (e.g. core diameter, triple or standard tube, depthof diamond tails, face-sampling bit or other type,whether core is oriented and if so, by what method, etc). | • Current drilling by Sunstone is diamond core drillingand has drilled to various depths up to 720m. Thediamond core was drilled delivering either HTW(70.9mm) or NTW (56mm) core. Drill core is orientedusing a Reflex ACT II tool for bottom of hole. |
| Drill samplerecovery | Method of recording and assessing core and chip samplerecoveries and results assessed. | · Diamond core recovery data for the Limon drillingwas measured for each drill run and captured in adigital logging software package. The data has beenreviewed and core recovery was approximately 100%throughout. |
| Measures taken to maximise sample recovery and ensurerepresentative nature of the samples. | • Core recovery at Limon was good, no extra measureswere taken to maximise sample recovery. | |
| Whether a relationship exists between sample recovery$\bullet$and grade and whether sample bias may have occurreddue to preferential loss/gain of fine/coarse material. | · No relationship between sample recovery and gradehas been established. | |
| Logging | Whether core and chip samples have been geologically$\bullet$and geotechnically logged to a level of detail to supportappropriate Mineral Resource estimation, miningstudies and metallurgical studies. | • Drill samples, trench samples and rock chips werelogged for lithology, weathering,structure,mineralogy, mineralisation, colour, and other features.Logging and sampling were carried out according toSunstone's internal protocols and QAQC procedureswhich comply with industry standards. |
| Whether logging is qualitative or quantitative in nature.Core (or costean, channel, etc.) photography. | • Drill samples, and trench and rock chip samples arefor lithology,weathering,loggedstructure,mineralogy, mineralisation, colour, and other features. | |
| The total length and percentage of the relevant$\bullet$intersections logged. | • The drill holes and trenches are logged in full, fromstart to finish of the excavation. | |
| Sub-samplingtechniquesand sample | • If core, whether cut or sawn and whether quarter, half orall core taken. | • Half core was used to provide the samples that weresubmitted for assay. Quarter core samples were taken$\sim$ 1 in every 28 samples for duplicate sampling. Theremaining core is left in the core trays. |
| preparation | • If non-core, whether riffled, tube sampled, rotary split,etc. and whether sampled wet or dry. | $\bullet$ N/A. |
| • For all sample types, the nature, quality andappropriateness of the sample preparation technique. | • Surface and drill core samples from Limon were sent tothe LAC y Asociados Cia. Ltda. Sample PreparationFacility in Cuenca, Ecuador for sample preparation.The standard sample preparation for drill core samples(Code PRP-910) is: Drying the sample, crushing to sizefraction $70%$ <2mm and splitting the sample to a $250g$portion by riffle or Boyd rotary splitter. The 250gsample is then pulverised to $>85%$ passing 75 microns |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| and then split into two 50g pulp samples. Then one ofthe pulp samples was sent to the MS AnalyticalLaboratory in Vancouver (Unit 1, 20120 102ndAvenue, Langley, BC V1M 4B4, Canada) for gold andbase metal analysis.• The sample preparation is carried out according toindustry standard practices using highly appropriatesample preparation techniques. | ||
| Quality control procedures adopted for all sub-sampling$\bullet$stages to maximise representivity of samples. | standard QAQC• Sunstone usedan industryprogramme involving Certified Reference Materials"standards" and blank samples, which were introducedin the assay batches.• Standards (Certified Reference Materials) or analyticalblanks were submitted at a rate of 1 in 28 samples.Field duplicates were also taken at a rate ofapproximately 1 in 28 samples.• The check or duplicate assay results are reported alongwith the sample assay values in the final analysisreport. | |
| Measures taken to ensure that the sampling isrepresentative of the in-situ material collected, includingfor instance results for field duplicate/second-halfsampling. | • For diamond core, the routine sample procedure is toalways take the half/quarter core to the right of theorientation line (looking down hole) or the cut line (incases where the orientation line was not reliable).• Once assay results are received the results fromduplicate samplesare compared withthecorresponding routine sample to ascertain whether thesampling is representative. | |
| Whether sample sizes are appropriate to the grain size of$\bullet$the material being sampled. | Sample sizes are considered to be appropriate for thestyle of sampling undertaken and the grainsize of thematerial, and correctly represent the style and type ofmineralisation at the exploration stage. | |
| Quality ofassay data andlaboratorytests | • The nature, quality and appropriateness of the assayingand laboratory procedures used and whether thetechnique is considered partial or total. | Sunstone uses a fire assay gold technique for Auassays (FAS-111) and a four acid multi elementtechnique (IMS-230) for a suite of 48 elements. FAS-111 involves Au by Fire Assay on a 30-gram aliquot,fusion and atomic absorption spectroscopy (AAS) attrace levels. IMS-20 is considered a near total 4 acidtechnique using a 20g aliquot followed by multi-element analysis by ICP-AES/MS at ultra-trace levels.• This analysis technique is considered suitable for thisstyle of mineralisation. |
| • For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determining theanalysis including instrument make and model, readingtimes, calibrations factors applied and their derivation,etc. | Handheld XRF data, together with detailed geologicallogging, are used as a guide to areas of potentialmineralisation and samples from these areas are sentfor laboratory analysis as described above. | |
| · Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy (i.e.lack of bias) and precision have been established. | Standards, blanks and duplicates are inserted $\sim$ 1/28samples. The values of the standards range from lowto high grade and are considered appropriate tomonitor performance of values near cut-off and nearthe mean grade of the deposit.• The check sampling results are monitored, andperformance issues are communicated tothelaboratory if necessary. | |
| Verification ofsampling and | The verification of significant intersections by eitherindependent or alternative company personnel. | • Procedure checks have been completed by theCompetent Person for exploration results for thisannouncement. |
| assaying | The use of twinned holes.٠ | Twin holes have not been drilled in these areas.$\bullet$ |
| Documentation of primary data, data entry procedures,data verification, data storage (physical and electronic)protocols. | • Sunstone sampling data were imported and validatedusing Excel. | |
| • Discuss any adjustment to assay data. | • Assay data were not adjusted. Core loss intervals are |
| Criteria | JORC Code explanation | C ommentarv | |||
|---|---|---|---|---|---|
| assigned assay values of zero where present. | |||||
| Location ofdata points | Accuracy and quality of surveys used to locate drill holes$\bullet$(collar and down-hole surveys), trenches, mine workingsand other locations used in Mineral Resource estimation. | Sample co-ordinates are located by GPS and for trenchsamples measured along the length of the trench. | |||
| Specification of the grid system used.$\bullet$ | Ecuador projection parameters: | ||||
| ParameterValue | |||||
| Reference EllipsoidInternational 1924 | |||||
| Semi Major Axis | |||||
| Inverse Flattening $(1/f)$ | |||||
| UTM Zone -17S (DatumType of ProjectionPSAD 56 ) | |||||
| Central Meridian:$-81.0000$ | |||||
| Latitude of Origin0.0000 | |||||
| Scale on Central Meridian0.9996 | |||||
| False Northing10000000 | |||||
| False Easting500000 | |||||
| Quality and adequacy of topographic control.٠ | • The topographic control was compared againstpublished maps and satellite imagery and found to begood quality. | ||||
| Data spacingand | Data spacing for reporting of Exploration Results. | • The drill core samples were collected from diamonddrill holes from the Limon target, and with samplelength generally ranging between $1.0 - 2.0$ m. | |||
| distribution | Whether the data spacing, and distribution is sufficientto establish the degree of geological and gradecontinuity appropriate for the Mineral Resource and OreReserve estimation procedure(s) and classificationsapplied. | • The data from these samples does not contribute to anyresource estimate nor implies any grade continuity. | |||
| • Whether sample compositing has been applied. | • No sample compositing was done. | ||||
| Orientation ofdata inrelation togeological | Whether the orientation of sampling achieves unbiased$\bullet$sampling of possible structures and the extent to whichthis is known, considering the deposit type. | Drilling orientations were appropriate for the$\bullet$interpreted geology providing representative samples.Trench orientations and rock chip locations wereappropriate for the interpreted geology providingrepresentative samples. | |||
| structure | If the relationship between the drilling orientation andthe orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material. | • No sampling bias is expected at this stage. | |||
| Samplesecurity | The measures taken to ensure sample security.$\bullet$ | • Sunstone sampling procedures indicate individualsamples were given due attention.• Sample security was managed through sealedindividual samples and sealed bags of multiplesamples for secure delivery to the laboratory bypermanent staff of the joint venture.• MS Analytical is an internationally accreditedlaboratory that has all its internal procedures heavilyscrutinised in order to maintain their accreditation. MSAnalytical is accredited to ISO/IEC 17025 2005Accredited Methods. | |||
| Audits orreviews | The results of any audits or reviews of sampling$\bullet$techniques and data. | • Sunstone's sampling techniques and data have beenaudited multiple times by independent miningconsultants during various project assessments. Theseaudits have concluded that the sampling techniquesand data management are to industry standards.• All historical data has been validated to the best |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| degree possible and migrated into a database. |
TABLE 1 – Section 2: Exploration Results
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Mineraltenement andland tenurestatus | •Type, reference name/number, location and ownershipincluding agreements or material issues with thirdparties such as joint ventures, partnerships, overridingroyalties, nativetitle interests,historicalsites,wilderness or national park and environmentalsettings. | •The Bramaderos Exploration Concession is located inthe Loja Province of southern Ecuador. The concessionwas granted to La Plata Minerales S.A. ("PLAMIN") inJanuary 2017. PLAMIN is a subsidiary of SunstoneMetals Ltd. The concession is subject to a Joint Venturebetween SolGold Canada Inc. (12.5%) and SunstoneMetals Ltd. (87.5%). There are no declared wildernessareas or national parks within or adjoining the concessionarea. There are no established native title interests. |
| •The security of the tenure held at the time of reportingalong with any known impediments to obtaining alicence to operate in the area. | •The Bramaderos Exploration Concession was granted toLa Plata Minerales S.A. ("PLAMIN") in January 2017.PLAMIN is now a subsidiary of Sunstone Metals Ltd.The Bramaderos Concession is subject to a Joint Venturebetween Sunstone Metals and SolGold. Sunstone has an87.5% interest in the JV. SolGold's 12.5% interest is loancarried. | |
| Explorationdone by otherparties | •Acknowledgment and appraisal of exploration by otherparties. | •The historic exploration at Bramaderos was completedby various groups over the period 1970-1984, 2001-2002and 2004-2007. Most of the readily available historicdata has been acquired and compiled into databases anda GIS project. Exploration by other parties has includedstream sediment surveys, geological mapping, rock chipsampling (888 samples) and grid-based soil sampling(1324 samples), trenching and channel sampling (17trenches), ground magnetic surveys (31 line kilometres),electrical IP surveys and diamond drilling (10426m). |
| Geology | •Deposittype,geologicalsettingandstyleofmineralisation. | •The deposit style being explored for includes intrusionrelated and stockwork hosted porphyry Au-Cu systemsplus epithermal gold-silver-polymetallic veins. Thesetting at Limon is a volcanic arc setting of Cretaceousage intrusions. |
| Drill holeInformation | •A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for all Materialdrill holes:a. easting and northing of the drill hole collarb. elevation or RL (Reduced Level – elevation abovesea level in metres) of the drill hole collarc.dip and azimuth of the holed. down hole length and interception depthe.hole length. | •Details of the samples discussed in this announcementare in the body of the text.•See Figures 1-3 for the location of soil sampling anddrilling activities at Limon, and nearby areas. |
| •If the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understanding ofthe report, the Competent Person should clearlyexplain why this is the case. | •Information included in announcement. | |
| Dataaggregationmethods | •In reporting Exploration Results, weighting averagingtechniques,maximumand/orminimumgradetruncations (e.g. cutting of high grades) and cut-offgrades are usually Material and should be stated. | •Weighted averages were calculated over reportedintervals according to sample length.•No grade cut-offs were applied. |
| •Where aggregate intercepts incorporate short lengthsof high-grade results and longer lengths of low-graderesults, the procedure used for such aggregationshould be stated and some typical examples of suchaggregations should be shown in detail. | •No aggregating of intervals undertaken at this stage. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| • The assumptions used for any reporting of metalequivalent values should be clearly stated. | Preliminary metallurgical studies are indicating astandard grind with a flotation circuit. Stage one willrecover copper and the majority of gold as a saleableconcentrate. Stage two is a finer grind with a cyanideleach for gold on site. Current, overall estimatedrecoveries for the combined process are 86% for copperand 89% for gold. | |
| Relationshipbetween | • If the geometry of the mineralisation with respect to thedrill-hole angle is known, its nature should bereported. | Figures 1-4 show the interpreted strike orientation of themineralised lodes based on mapping and interpretationof detailed magnetic data. |
| mineralisationwidths andinterceptlengths | • If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (e.g. 'down hole length, true width not known'). | True widths of mineralised lodes are not known at this$\bullet$stage. |
| Diagrams | Appropriate maps and sections (with scales) and$\bullet$tabulations of intercepts should be included for anysignificant discovery being reported. These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views. | See Figures 1-4 for maps showing distribution ofsamples. |
| Balancedreporting | Where comprehensive reporting of all Exploration$\bullet$Results is not practicable, representative reporting ofboth low and high grades and/or widths should bepracticed to avoid misleading reporting of ExplorationResults. | Figures 1-4 show the current interpretations of geology. |
| Othersubstantiveexplorationdata | Other exploration data, if meaningful and material,$\bullet$should be reported) including (but not limited to):geological observations; geophysical survey results;geochemical survey results; bulk samples - size andmethod of treatment; metallurgical test results; bulkdensity, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminatingsubstances. | Figures 1-5 above show various datasets that are beingused to identify target areas and to guide current andfuture drilling. |
| Further work | The nature and scale of planned further work (e.g. tests$\bullet$for lateral extensions or depth extensions or large-scale step-out drilling). | The planned exploration program is outlined in theannouncement. |
| • Diagrams clearly highlighting the areas of possibleextensions,includingthegeologicalmaininterpretations and future drilling areas, provided thisinformation is not commercially sensitive. | See Figures 1-5 which show areas for furtherexploration. |