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SUNSTONE METALS LTD Capital/Financing Update 2024
65870_rns_2024-11-17_4a5ca576-4b36-4ff8-8bea-b07e92b9e8df.pdf
Capital/Financing Update
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18 NOVEMBER 2024
Update to gold-copper discovery announcement at Bramaderos; and update to MMC presentation and retraction of information.
Sunstone Metals Ltd (ASX: STM) (Sunstone or the Company) refers the announcement "New gold-copper porphyry discovery at Bramaderos" (Announcement) and "Presentation – MMC El Palmar Tier 1 Au Cu Discovery" (Presentation) lodged with the ASX on 12 November 2024.
The Company provides the following updates to the Announcement and Presentation to include required JORC Code disclosure and information required in ASX compliance guidance.
Updates to both the Announcement & Presentation
- Where an Exploration Target has been quoted in ounces, information on the associated tonnage range and grade ranges have been included with the statement;
- Where a Mineral Resource has been quoted in gold equivalent ounces, the associated tonnage and grade are also quoted;
- A detailed description of the basis for the Exploration Target, including specific description of the level of exploration activity has been included for all Exploration Targets. The Company notes that this information is consistent with prior information released via the ASX.
Announcement specific updates
- A description of the photos provided at Figure 2 has been included to describe the nature of the mineralisation shown;
- The comment noting that "In Sunstone's opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold" has been included to clarify the basis of the gold equivalent formulas;
Presentation specific updates
- Detailed information has been provided where peer comparison information has been provided in graphical form. This information includes the class of Ore Reserve or Mineral Resource displayed, calculation basis for gold equivalents, and market capitalisation; and
- The "EV/Resource value for ASX gold equities" which referenced an analyst's report from October 2024 has been updated for current market capitalisation.
Retraction
Following discussions with the ASX, the Company has amended the graph on page 16 of the Presentation. The ASX interpreted this to infer that the Limon Exploration Target would convert to a Mineral Resource, however without further drilling, it is not known how much of the Exploration Target, if any, would convert to a Mineral Resource.
The graph has been amended to clarify that there is only the potential for the Mineral Resource at Bramaderos to increase by converting the Exploration Target through further drilling.
The prior graph inferring the Limon Exploration Target would convert to a mineral resource is therefore retracted, and investors should not rely on the prior graphic representation.
This announcement has been approved by the Board.
For further information, please visit www.sunstonemetals.com.au
Mr Patrick Duffy Managing Director Sunstone Metals Ltd Tel: 07 3368 9888 Email: [email protected] Media: Paul Armstrong Read Corporate +61 8 9388 1474
12 NOVEMBER 2024
Bramaderos Gold-Copper Project, Southern Ecuador New gold-copper porphyry discovery points to more growth at Bramaderos
The Copete discovery takes the Bramaderos mineralised cluster to 2km x 1.8km, highlighting scope for large open pit operation
Key Points
- Trench sampling results from the new Copete gold-copper porphyry target at Bramaderos have confirmed significant surface porphyry gold-copper mineralisation:
- o 113m at 0.64g/t gold-equivalent2(0.51g/t gold, 0.07% copper, and 1.2g/t silver) in trench ML-01, within
- o 214.0m at 0.50g/t gold equivalent2 (0.37g/t gold, 0.08% copper, and 1.1g/t silver)
- It is interpreted that copper is leached at surface and that higher grades of copper are expected in drilling
- The Copete discovery is next to the Brama-Alba Resource and the large Melonal target
- The Bramaderos cluster of gold-copper mineralised bodies at surface now covers 2km x 1.8km, highlighting the potential for a large open pit operation
- Bramaderos, along with the El Palmar project in northern Ecuador, is currently the subject of partnership discussions with third parties
- These discussions are aimed at accelerating exploration and Resource growth to help unlock the full value of the projects
Sunstone Metals Ltd (ASX: STM) is pleased to announce that it has discovered another significant gold-copper porphyry at its Bramaderos Project in southern Ecuador.
The Copete discovery is in addition to the previously released porphyry Exploration Target of 3.3 – 8.6Moz AuEq within 255Mt to 360Mt at a grade between 0.40 and 0.74g/t AuEq 1,2 at Bramaderos and therefore presents significant scope for that Bramaderos Exploration Target to be increased. The potential tonnage, grade and quantity 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 Copete discovery means Sunstone has now outlined a 1.8km-long cluster of porphyry gold-copper mineralised intrusions across the Melonal – Copete trend. This trend runs parallel to the Brama-Alba trend and is located only a few hundred meters to the south (see Figures 1 and 2).
REGISTERED OFFICE Sunstone Metals Limited L31, 120 Collins St +61 3 7044 2627 ASX: STM Australia sunstonemetals.com.au
ABN 68 123 184 412 Melbourne V 3000 [email protected]
The Copete target remains largely under-explored, with no drilling by Sunstone – but now with a coherent and wide mineralised trench intersection, a 3-D modelled magnetic anomaly plunging to the SE comparable to that seen at Brama and mapped stockwork veining interpreted to represent the upper levels of an intact porphyry system (see Figure 2).
It is interpreted that copper is leached at surface, and that higher grades of copper are expected in drilling. This is supported by individual 2m intervals returning up to 0.28% copper (ML-01c 31-33m grading 0.45g/t gold, 2.4g/t silver and 0.28% copper).
Sunstone Managing Director Patrick Duffy said*, "The Copete porphyry is another exciting new discovery that adds to the large-scale potential at Bramaderos, and we don't expect it to be the last.*
"Copete is located next to the 2.7Moz AuEq2 Brama-Alba Resource (156Mt at 0.53g/t AuEq) and the large Melonal exploration target, which further highlights the potential scale of the opportunity at Bramaderos.
"Taken together, it reinforces that Bramaderos is a world-class multi-decade mining opportunity and increases the Project's value to third parties looking for hard-to-find gold and copper projects with genuine scale".
Figure 1: Plan map showing the distribution of porphyry gold-copper targets at Bramaderos that are associated with gold anomalism in soil samples (backdrop to image)
Figure 2: Northwest to Southeast tending long section on the Melonal – Copete porphyry cluster. The long section graphic shows three porphyry systems that plunge steeply southeast to sub-vertical based on 3-D modelling of magnetics data. Multiple datasets define the porphyry centers, and include anomalous soil geochemistry, mapping of alteration mineralogy, modelling of magnetics data, limited drilling at Melonal, and mapping of surface stockwork vein intensity. The photographs of outcrops below the cross section show the intensity of stockwork veining at each porphyry center, and is related to veins/meter statistics on the cross section. The stockwork veining is dominated by quartz, and has minor oxidised quartz-magnetite and likely oxidised pyrite veins. The photographs are not of specific mineralisation, but of altered rocks typical of upper-level porphyry systems. The veins/meter measurements are based on field observations and measurements of number of veins per meter of rock exposed in trenches and channels.
| Trench | Length(m) | Au(g/t) | Cu(%) | Ag(g/t) | Au-Eq(Au-Ag-Cu) (g/t) | Comments |
|---|---|---|---|---|---|---|
| ML-01 | 214 | 0.37 | 0.08 | 1.1 | 0.50 | Local higher-grade copper;peak gold over 2m is 2.2g/t |
| includes | 113 | 0.51 | 0.07 | 1.2 | 0.64 |
Table 1: Assay results from the recent trench sampling program at Copete.
Figure 3: Location of Sunstone's Bramaderos, El Palmar and Verde Chico projects, Ecuador.
Mr Patrick Duffy, Managing Director of Sunstone Metals Ltd., has authorised this announcement to be lodged with the ASX.
For further information, please visit www.sunstonemetals.com.au Mr Patrick Duffy Managing Director Sunstone Metals Ltd Tel: 03 7044 2627 Email: [email protected] Media: Paul Armstrong Read Corporate +61 8 9388 1474
About Sunstone Metals
Sunstone Metals Limited ("Sunstone" or "Company") is an ASX-listed mineral exploration company with two world-class gold and copper projects in Ecuador:
- The Bramaderos Project, located in Southern Ecuador, has both at-surface and deeper porphyry goldcopper systems and contains an initial Mineral Resource estimate of 156Mt at 0.53g/t AuEq for 2.7Moz AuEq1,2 .
| JORCClassification | Tonnage (Mt) | Au (g/t) | Cu (%) | Ag (g/t) | AuEq2 (g/t) | AuEq2 (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 |
Additionally, the Bramaderos Project has a porphyry Exploration Target7 of between 3.3Moz and 8.6Moz AuEq within 255Mt to 360Mt at a grade between 0.40 and 0.74g/t AuEq1,2 , and the Limon epithermal gold-silver Exploration Target7 of 0.9 - 1.7Moz AuEq4 within 30Mt - 44Mt at a grade between 0.9 - 1.2g/t AuEq3,4 .
- The El Palmar Project is located in northern Ecuador, 60km north-west of Ecuador's capital Quito. The property sits on the regionally significant Toachi Fault Zone that hosts a number of world-class copper porphyry systems. The Project has both at-surface and deeper porphyry gold-copper systems and an initial Mineral Resource estimate of 64Mt at 0.60g/t AuEq5,6 for 1.2Moz AuEq6 .
| Average Grade | Material Content | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| JORC Classification | TonnageMt | AuEq6(g/t) | Au(g/t) | Ag(g/t) | Cu(ppm) | Cu(%) | AuEq6(Koz) | Au(Koz) | Ag(Koz) | Cu(Kt) |
| Indicated | 5 | 0.63 | 0.42 | 0.81 | 1,456 | 0.15 | 100 | 100 | 100 | 7 |
| Inferred | 59 | 0.59 | 0.40 | 0.65 | 1,290 | 0.13 | 1,100 | 700 | 1,200 | 70 |
| TOTAL | 64 | 0.60 | 0.41 | 0.66 | 1,301 | 0.13 | 1,200 | 800 | 1,300 | 80 |
Additionally, the El Palmar Project has a porphyry Exploration Target7 of between 15Moz and 45Moz AuEq within 1.0 to 1.2Bt at a grade between 0.3 - 0.7g/t gold and 0.1 – 0.3% copper5 .
1 Refer ASX Announcement on 13 December 2022.
2 The gold equivalent calculation formula for porphyry gold-copper-silver mineralisation at Bramaderos 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
3 Refer ASX Announcement on 5 February 2024.
4 The gold equivalent calculation formula for the Limon epithermal gold-silver mineralisation 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 over 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
5 Refer ASX Announcement on 22 October 2024.
6 The gold equivalent calculation formula for porphyry gold-copper-silver mineralisation at El Palmar 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 applied were US$1,800/oz gold, US$4.50/lb copper and US$22/oz silver. Recoveries are estimated at 90% for gold, 78% for copper (excluded for oxide material), 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
7 The potential quantity and grade of the Exploration Target is conceptual in nature. There has been insufficient exploration to estimate a Resource for the exploration target area reported. It is uncertain if further exploration will result in the estimation of a Resource.
Strategy
The porphyry projects at Bramaderos and El Palmar have the potential to evolve into multi-decade goldcopper mining centres. At Bramaderos, the Limon epithermal deposit has been prioritised as a potential nearsurface high-grade gold-silver development opportunity. This strategy allows for a scalable operation to be established first before developing the much larger porphyry gold-copper-silver opportunities at Bramaderos.
The Company continues to evaluate potential new opportunities to continue to grow our business in Ecuador, where clear shareholder value can be demonstrated. It is also evaluating potential partnerships for its projects where this may maximise the value of the portfolio.
Track Record
The team at Sunstone has been involved in significant discoveries of porphyry and epithermal copper-gold mineralisation at Tujuh Bukit in Indonesia and Cascabel in Ecuador, and the successful development of the King of the Hills Gold Mine in Western Australia and Koniambo Nickel Mine and Smelter in New Caledonia. The Company continues to attract specialist resources executives and is well-placed to repeat that success at Bramaderos and El Palmar.
Excellent infrastructure
All projects are supported by established infrastructure close to power, road and rail infrastructure and ports.
Community support
The Board and Management Team take their responsibilities to the host communities seriously and have endeavoured to implement the highest ESG standards throughout our business. Sunstone released its inaugural Sustainability Report in 2023, which details the level of support and engagement with local communities and project stakeholders.
Information on Exploration Targets
Bramaderos
The Bramaderos porphyry Exploration Target within the Bramaderos concession is estimated from 3 areas – the extensions to the Brama-Alba system that are not captured in the Mineral Resource estimate (MRE), and mineralisation drilled at the targets of Melonal and Limon porphyry mineralisation.
The Exploration Target does not include known porphyry mineralisation at Sandia, Porotillo, Playas, Copete or Yeso. It was decided to not include these areas because Sunstone has not yet completed any or sufficient drilling in these areas. Some historical drilling has been completed at Porotillo. Further work in these areas will be undertaken and they are expected to contribute to an expanded Exploration Target in future.
Several areas of mineralisation have been identified outside of the area of the MRE. The MRE captured all material within a 'Mineralisation Wireframe', and within an economically modelled pit. Some drill holes that intersected mineralisation are outside the mineralisation wireframe, and either within or outside the pit. Inadequate drilling exists in these areas to show continuity. Furthermore, the effect of the reasonable prospects of economic extraction was to exclude 14% of material. This material has been captured in the Exploration Target.
Six domains were identified as having clear potential for additional mineralisation and these were reviewed either on a depth slice basis, or a block basis. Volumes were calculated and grade was assigned based on nearby data and on comparison with the overall Brama-Alba grade.
The Melonal target is a continuation of the Brama-Alba system. It is geologically grouped with Brama-Alba. Recent drilling by Sunstone, and historical drilling from 2007, has confirmed that the Melonal target is mineralised, and that mineralisation is hosted in rocks the same as those drilled at the nearby Brama-Alba deposit. The mineralised rocks are coincident with a discrete sub-vertical magnetic anomaly measuring up to 400m in diameter, and with a vertical extent of over 1,000m. The Exploration Target for Melonal was
considered to a depth of 500m. The Melonal target straddles the approved Bramaderos-01 and Bramaderos-02 concessions.
Sunstone has drilled 8 effective diamond holes at the Limon porphyry target. Mineralisation has been intersected in a number of holes. A trench (LM_TR_01) was completed at Limon prior to drilling in an area of outcropping stockwork veining and minor secondary copper mineralisation. It returned 97m at 0.73g/t gold and 0.23% copper. A recent hole drilled under the trench has intersected similar stockwork veined intrusive and contains chalcopyrite.
This area around Trench TR_LM_01 has been included in the porphyry Exploration Target where more drilling is required to allow inclusion in a Mineral Resource estimate.
This target area will be further explored with drilling programs to be executed over the next two years, subject to the Company's funding ability.
Limon epithermal
The Limon epithermal Exploration Target was estimated on target prospects where there was a combination of diamond drilling (by Sunstone), geological mapping, trenching, geochemistry (soils) and to a lesser extent geophysical data (magnetics) which could support the geological and mineralisation concept model.
The Limon alteration area has been covered with soil sampling on a 50m x 50m grid. This survey is an important exploration method which identified several gold-in soil anomalies that are primary targets for drilling. The soil geochemical data is further interpreted using related element associations typical of epithermal systems, such as areas of somewhat coincident gold, silver, zinc, lead, copper, tellurium and arsenic. Target areas have also been strengthened using alteration mineralogy from a hand-held Terraspec instrument. These data assist in mapping the alteration zones most likely to be associated with epithermal mineralisation.
Drilling at Limon has also intersected a high sulphidation system in holes LMDD004 and 006, which included intersections of 13.3m at 0.43% copper and 0.11g/t gold, within 59.6m at 0.16% copper.
Standard geological mapping and rock chip sampling has also been undertaken across the Limon target area.
The volume ranges for the initial Exploration Target in the Central Shoot were estimated using cross sections and 3-D modelling in Leapfrog software, based upon an analysis of drilling, mineralised rock types, grade distribution, potential for extrapolation of mineralisation continuity and interpreted geological risk.
The volume ranges for the other components were estimated from geological interpretation and guided by extent of surface geochemical anomalism, supplemented by preliminary drilling. A conservative approach was taken to the potential distribution of gold and silver bearing veins.
This target area will be further explored with drilling programs to be executed over the next two years, subject to the Company's funding ability.
El Palmar
The Exploration Target within the El Palmar concession is estimated from within the T1, T2 and T3 areas.
The Exploration Target does not include interpreted or known porphyry mineralisation at the T4 and T5 target areas. It was decided to not include these areas because Sunstone has not yet completed any drilling at T4 and has conducted only minor drilling at T5. Further work in these areas will be undertaken and they are expected to contribute to an expanded Exploration Target in future.
The components of the exploration target are based on a combination of diamond drilling conducted by Codelco (during 2012) and by Sunstone (during 2022 and 2023), ground magnetics, multi-element soil sampling, multi-element rock chip and channel sampling, mulit-element trench sampling and deep magnetic inversion anomalies modelled from ground magnetic data.
Wireframes of the areas within the Exploration Target areas were created in Leapfrog software using data interpreted from the Mineral Resource block model, iso-surface contours of modelled magnetic intensities,
and grade ranges in available diamond drill holes. The volumes were multiplied by a specific gravity of 2.72g/cc (the average density of the T1 resource) to determine the tonnage range of the target. Grade ranges were determined with reference to drill intersection and surface rock chip assays.
The next step in testing these targets is primarily diamond drill testing. The targets have been adequately defined, but drill programs still require detailed planning regarding the number of drill holes, their azimuths, dips, and final depths. Drilling of these targets will be undertaken over the next two years, subject to the company's funding availability.
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 fulltime 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.
The information in this report that relates to Exploration Targets is based upon information reviewed by Mr Malcolm Norris who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Norris is a fulltime 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". Mr Norris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
The information relating to the Bramaderos Mineral Resource is extracted from the ASX announcement on 13 December 2022. The information relating to the El Palmar Mineral Resource is extracted from the ASX announcement on 22 October 2024. The company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements 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 for their respective Mineral Resource estimates have not been materially modified from the original market announcements.
| TABLE 1 – Section 1: Sampling Techniques and Data | |||
|---|---|---|---|
| Criteria | JORC 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 new results announced here are from trenchsamples. The trench sampling was carried out along ~1-2m intervals from the base of an excavated trench. |
| •Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used. | • Sample recovery was good. | |
| •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. | • Trench, rock chip and channel sampling points havebeen guided by geological mapping. Thetrenchsamples from Copete 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). | • Previous drilling by Sunstone at the Bramaderos projectcomprises diamond core drilling and has drilled tovarious depths up to 1200m. The diamond core wasdrilled delivering either HTW (70.9mm) or NTW(56mm) core. Drill core is oriented using a Reflex ACTII 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 Bramaderosdrilling was measured for each drill run and capturedin a digital logging software package. The data hasbeen reviewed and core recovery was approximately100% throughout. |
| •Measures taken to maximise sample recovery and ensurerepresentative nature of the samples. | • Core recovery at Bramaderos was good, no extrameasures were taken to maximise sample recovery. | |
| •Whether a relationship exists between sample recoveryand 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 geologicallyand geotechnically logged to a level of detail to supportappropriateMineralResourceestimation,miningstudies and metallurgical studies. | •Trench, channel and rock chip samples were loggedfor lithology, weathering, structure, mineralogy,mineralisation, colour, and other features. Logging andsampling were carried out according to Sunstone'sinternal protocols and QAQC procedures whichcomply with industry standards. |
| •Whether logging is qualitative or quantitative in nature.Core (or costean, channel, etc.) photography.•The total length and percentage of the relevant | •Trench, channel and rock chip samples are logged forlithology,weathering,structure,mineralogy,mineralisation, colour, and other features.Trenches are logged in full, from start to finish of the | |
| intersections logged.•If core, whether cut or sawn and whether quarter, half or | excavation.•Newtrenchsamplingonlyreportedinthis | |
| Sub-samplingtechniques | all core taken. | announcement. |
| and sample | •If non-core, whether riffled, tube sampled, rotary split,etc. and whether sampled wet or dry. | •N/A. |
| preparation | •Forallsampletypes,thenature,qualityandappropriateness of the sample preparation technique. | • Surface samples from Copete were sent to the LAC yAsociados Cia. Ltda. Sample Preparation Facility inCuenca, Ecuador for sample preparation. The standardsample preparation for trench samples (Code PRP-910)is: Drying the sample, crushing to size fraction 70%<2mm and splitting the sample to a 250g portion byriffle or Boyd rotary splitter. The 250g sample is thenpulverised to >85% passing 75 microns and then splitinto two 50g pulp samples. Then one of the pulpsamples was sent to the MS Analytical Laboratory in |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Vancouver (Unit 1, 20120 102nd Avenue, Langley, BCV1M 4B4, Canada) for gold and base metal analysis.• The sample preparation is carried out according toindustry standard practices using highly appropriate | ||
| sample preparation techniques. | ||
| •Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples. | • SunstoneusedanindustrystandardQAQCprogramme 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.Fieldduplicates 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 fromduplicatesamplesarecomparedwiththecorresponding routine sample to ascertain whether thesampling is representative. | |
| •Whether sample sizes are appropriate to the grain size ofthe 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. FAS111 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 multielement 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 ~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, andperformanceissuesarecommunicatedtothelaboratory 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. | •Twin holes have not been drilled in these areas. |
| •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. | |
| Location ofdata points | •Accuracy and quality of surveys used to locate drill holes(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. | •Ecuador projection parameters: |
| Criteria | JORC Code explanation | Commentary | ||
|---|---|---|---|---|
| Parameter | Value | |||
| Reference Ellipsoid | International 1924 | |||
| Semi Major Axis | ||||
| Inverse Flattening (1/f) | ||||
| Type of Projection | UTM Zone -17S (DatumPSAD56) | |||
| Central Meridian: | -81.0000 | |||
| Latitude of Origin | 0.0000 | |||
| Scale on Central Meridian | 0.9996 | |||
| False Northing | 10000000 | |||
| False Easting | 500000 | |||
| •Quality and adequacy of topographic control. | • 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 trench samples were collected from the base of ahand-excavated trench from the Bramaderos Copetetarget, and with sample length generally around 2.0m. | ||
| 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 in | •Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to whichthis is known, considering the deposit type. | •were appropriate for the interpreted geologyproviding representative samples. | Trench, channel orientations and rock chip locations | |
| relation togeologicalstructure | •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. | • 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 heavilyAnalytical is accredited to ISO/IEC 17025 2005Accredited Methods. | scrutinised in order to maintain their accreditation. MS | |
| Audits orreviews | •The results of any audits or reviews of samplingtechniques and data. | • Sunstone's sampling techniques and data have beenaudited multiple times by independent miningaudits have concluded that the sampling techniquesand data management are to industry standards.• All historical data has been validated to the bestdegree possible and migrated into a database. | consultants during various project assessments. These |
| 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 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 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 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 an |
| 87.5% 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 gold-coppersystems plus epithermal gold-silver-polymetallic veins.The setting at the Bramaderos project is a volcanic arcsetting of Cretaceous age 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 1-2 for the location of trench, channel androckchip sampling, and soil survey coverage at Copeteand 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 the 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. | |
| •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. |
| Criteria | JORC Code explanation | Commentary |
|---|---|---|
| Relationshipbetweenmineralisationwidths andinterceptlengths | •If the geometry of the mineralisation with respect to thedrill-hole angle is known, its nature should bereported.•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'). | •Figures 1-2 show the interpreted strike orientation of themineralised lodes based on mapping and interpretationof detailed magnetic data.•True widths of mineralised lodes are not known at thisstage. |
| Diagrams | •Appropriate maps and sections (with scales) andtabulations 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 1-2 for maps showing the distribution ofsamples. |
| Balancedreporting | •Where comprehensive reporting of all ExplorationResults is not practicable, representative reporting ofboth low and high grades and/or widths should bepracticed to avoid misleading reporting of ExplorationResults. | •Figures 1-2 show the current interpretations of geology. |
| Othersubstantiveexplorationdata | •Other exploration data, if meaningful and material,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,geotechnicalandrockcharacteristics; potential deleterious or contaminatingsubstances. | •Figures 1-2 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. testsfor lateral extensions or depth extensions or largescale step-out drilling). | •The planned exploration program is outlined in theannouncement. |
| •Diagrams clearly highlighting the areas of possibleextensions,includingthemaingeologicalinterpretations and future drilling areas, provided thisinformation is not commercially sensitive. | •See Figures 1-2 which show areas for furtherexploration. |
El Palmar A Major Tier 1 Au-Cu Discovery
Melb Mining Club Patrick Duffy, MD & CEO 12 November 2024
Disclaimer
DISCLAIMER
To the maximum extent permitted by law, no representation, warranty or undertaking, express or implied, is made and, to the maximum extent permitted by law, no responsibility or liability is accepted by Sunstone or any of its officers, employees, agents or consultants or any other person as to the adequacy, accuracy, completeness or reasonableness of this Presentation. To the maximum extent permitted by law, no responsibility for any errors or omissions from this Presentation whether arising out of negligence or otherwise is accepted.
This Presentation contains general information about Sunstone Metals Limited (Sunstone) which is in the business of exploring for minerals which is a speculative and risky venture. It does not purport to contain all the information that a prospective investor may require. The Presentation should not be considered as an offer or invitation to subscribe for or purchase of any securities in Sunstone and no agreement to subscribe for securities will be entered into on the basis of this Presentation. Potential investors should conduct their own investigation and analysis and should check the accuracy, reliability, and completeness of the information provided and obtain independent and specific advice from appropriate professional advisors.
FORWARD-LOOKING STATEMENTS
This Presentation includes certain statements that may be deemed "forward-looking statements". All statements in this Presentation, other than statements of historical facts, that address future activities and events or developments that Sunstone expects, are forward looking statements.
Although Sunstone believes the expectations expressed in such forwardlooking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, continued availability of capital and financing, and general economic, market or business conditions.
Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in forward-looking statements.
A compelling major Gold & Copper opportunity
- Scope for Tier-1 scale global opportunity El Palmar
- Maiden MRE1 of 1.2Moz AuEq2
- Maiden Exploration Target of 15M – 45M oz's AuEq3
- Potential to start as a large open pit mine, sitting above and adjacent to other large porphyry systems
Targeting 10+Moz Au-Cu-Ag camp Bramaderos
- Brama-Alba porphyry MRE of 2.7Moz AuEq4
- Strategy to develop higher-grade at-surface Limon mine, unlocking multi-decade gold-copper porphyry systems at Bramaderos
- Accelerating drilling at Limon plan to establish inaugural MRE in CY25
Well funded Major catalysts to deliver re-rate
- Maiden El Palmar Mineral Resource Estimate & Exploration Target
- Ongoing exploration activities at Ecuador porphyry projects
- Advancing partnership opportunities at both El Palmar and Bramaderos
1 See ASX announcement 22 Oct 2024 2 64Mt at 0.60g/t AuEq for 1.2Moz AuEq 3 1.0 -1.2Bt at grade between 0.3-0.7 g/t Au and 0.1-0.3% copper 4 156Mt at 0.53g/t AuEq for 2.7Moz AuEq
ASX:STM
Refer slides 24 to 26 for full JORC details
Strategy: grow Resources and pursue partnerships
Proven team of exploration and development experts, with considerable success to date
Establish MRE, evaluate strategic options El Palmar
- Maiden El Palmar MRE adding ounces to Sunstone's Resource base
- The Oct-24 Exploration Target1 has demonstrated the potential at El Palmar to become a major global gold-copper mine
- Significant appeal with upside now clearly evident
Brama-Alba Porphyry MRE 2.7Moz Au-eq Bramaderos 2
- World class gold and copper porphyry opportunity
- Exploration Target of over 10Moz's Au-eq3
- Adjacent large Melonal Porphyry target permitted for drilling
- Establish maiden Limon MRE in 2025
Unlock value Pursue strategic partner(s)
- Advancing partnership opportunities
- Any future potential transactions would be designed to accelerate exploration and Resource growth to help unlock the full value of Sunstone's projects
1 See ASX announcement 22 Oct 2024 2 156Mt at 0.53g/t AuEq for 2.7Moz AuEq. See slides 24 - 26 for full JORC details
3 Bramaderos porphyry target of 255-360Mt at grade between 0.40-0.74 g/t AuEq for 3.3-8.6Moz AuEq, plus Limon epithermal target of 30-44Mt at grade between 0.9-1.2g/t Au Eq for 0.8-1.7oz AuEq
Board/Mgmt Team with exceptional track record
Ex-Red 5, Glencore and Xstrata, Mr Duffy brings international leadership and capital markets experience with a successful mine development track record
Bruce Rohrlach GM - Exploration
Ex-WMC, Intrepid and SolGold, Dr Rohrlach has been part of several major porphyry discoveries and oversees all exploration programs at Sunstone
Ex-WMC, Intrepid and SolGold, Mr Norris has been part of several major global porphyry discoveries and brings mineral exploration and management expertise
Lucas Welsh CFO & Company
Secretary (Jul-24) Former CFO of St Barbara, Mr Welsh is a specialist resources financial executive with international mining, capital markets and
governance expertise
Neal O'Connor Non-Executive Director (Apr-24)
Former Xstrata Copper Chief Legal Counsel, Mr O'Connor has extensive experience developing South American mining operations and infrastructure
Ray Robinson GM – Studies & Tech Services
Ex-PanAust, Placer Dome and Intrepid, Mr Robinson has extensive mining studies and operations experience, and oversees all study programs at Sunstone
Mr Stroud is Director – Corporate Finance at Morgans and brings extensive capital markets knowledge and investor relationships
Rodrigo Izurieta Country Manager
5
Based in Quito, Ecuador, and US-educated, Mr Izurieta is highly respected with deep relationships in the local mining industry and government
ASX:STM
Ecuador – rapidly emerging mining jurisdiction…
Pro-responsible mining government
- President actively encouraging responsible mining
- Single national mining department
Forms part of the worlds most endowed copper gold belt
- 2 world-class operating mines Fruta del Norte, Mirador
- All majors present (BHP, Anglo, Barrick, Codelco) Significant corporate activity
- Investment agreements signed for the most advanced projects including
- SolGold Cascabel Copper/Gold Project
- Adventus El Domo Curipamba Copper/Gold Project
- Dundee Loma Larga Gold Project
- FY24 transaction highlights include:
- Solgold US$750m financing for Cascabel Project
- Hancock US$120m 49% JV earn-in with ENAMI
- Silvercorp US$200m merger with Adventus 100km
6
Ecuador – …with a low-cost strategic advantage
Ecuador has two world-class, lowest cost-quartile operating mines
- Fruta del Norte Gold Mine (Lundin Gold)
- Mirador Copper Mine (Chinese-owned)
Low mining input costs are a competitive advantage
- Energy and Labour both significantly lower than Australia and Canada
- Potential for Sunstone's projects to be in the lowest cost quartile
- Complimented by very low stripping ratios
Hydro provides base energy load for the country (>90%)
- Potential for low-cost, low-carbon emission mining Ecuador's currency is USD
- Provides protection against inflation
Source:
1.El Palmar & Verde Chico, northern Ecuador
3,671 Ha under two concessions
- 3-hour drive from Quito
- Fully permitted for drilling
- Access to water and power
- Remote agricultural communities are supportive of the project
8
8
1.El Palmar & Verde Chico, northern Ecuador
Highly prospective mineralised district related to the Toachi Fault Zone
Tier 1 regional deposits
- 2.7Bt Alpala copper-gold porphyry deposit (0.53% CuEq) at Cascabel
- 0.53Bt Tandayama-America copper-gold porphyry deposit (0.36% CuEq) at Cascabel
- 1Bt Llurimagua copper-moly porphyry deposit (1.0% CuEq)
Hancock investing US$120m to earn 49% into JV with state-owned ENAMI in northern Ecuador (adjacent to El Palmar)
1. El Palmar: clear potential to be a Tier 1 deposit
Maiden Mineral Resource estimate (MRE) of 1.2Moz AuEq1 establishes a strong platform on which to build a world-scale resource inventory
- Pit-constrained MRE is based solely on the outcropping T1 gold-copper porphyry deposit
- 64Mt at 0.60g/t AuEq for 1.2Moz AuEq1
- o Cut-off grade of 0.4g/t AuEq
- T1 is only one of several gold-copper porphyry deposits at El Palmar
- 64Mt at 0.60g/t AuEq for 1.2Moz AuEq1
Gold and copper Exploration Target of 15M - 45Moz AuEq1
- 1.0Bt to 1.2Bt at a grade between 0.3g/t to 0.7g/t gold and 0.1% to 0.3% copper
- Contained metal of between 10Moz and 27Moz gold and 1.0Mt to 3.7Mt copper
- Estimated from only three deposits
- immense potential to further grow El Palmar
1 See slides 24-26 for full JORC details
1. El Palmar: Maiden MRE of 1.2Moz AuEq1
T1 has the potential to be advanced as a large open pit opportunity before undertaking exploration and development of the deeper porphyry opportunities
Based on only 17,699 meters of drilling
Significant potential to expand the T1 MRE and pit shell:
- Areas within the pit shell still to be drilled
- Targets adjacent to and directly below the pit shell will expand the pit size over time
- Expectation of a very low mine stripping ratio
Future mining will benefit from significant copper and silver byproduct credits
1 64Mt at 0.60g/t AuEq for 1.2Moz AuEq. See slides 24-26 for full JORC details
1. El Palmar: Exploration Target 15-45 Moz AuEq1
Prepared in accordance with JORC code and is in addition to the maiden MRE of 1.2Moz AuEq2
The areas of mineralisation captured in the Exploration Target are of high conviction, geologically robust domains consistent with high aspect ratio, clustered porphyry goldcopper deposits.
There is potential for the copper content to increase in areas interpreted to be central to the porphyry systems.
The Exploration Target has been estimated from only three deposits, meaning there is still immense potential to grow El Palmar, including the untested magnetic anomalies not in the Exploration Target (see Figure on right)
1 1.0 -1.2Bt at grade between 0.3-0.7 g/t Au and 0.1-0.3% copper. See slides 24-26 for full JORC details 2 64Mt at 0.60g/t AuEq for 1.2Moz AuEq.
ASX:STM
1. Tier 1 potential – what does this mean?
15M – 45M oz AuEq El Palmar Exploration Target demonstrates potential to rank alongside Tier 1 global gold-copper mines
"Porphyry grades" of these mines are economically attractive because of:
- 1. Bulk mining/processing at scale
- 2. Low strip ratios
- 3. Lower input costs in the host jurisdiction
Compares favourably with two of Australia's premier mines (owned by Newmont) and Lundin Mining's three South American flagship mines
Source: Company Public MROR Statements and announcements - refer slide 28.
ASX:STM #: Inclusive of Ore Reserves (to be consistent with peer comparisons)
1. Verde Chico is complimentary to El Palmar
Potential to define both porphyry copper-gold and epithermal gold opportunities
Exploration at Verde Chico has commenced with initial follow-up to the known high-grade gold mineralisation
Historical exploration from the 1990's includes:
- Perdida vein 6.5m @ 25.11 g/t Au
- Peligrosa vein 24m @ 21.2 g/t Au, 19m @ 7.72 g/t Au, 25m @ 10.24 g/t Au
- Gato vein 39m @ 3.08 g/t Au
- Pavas vein 26.5 @ 2.28 g/t Au, 10m @ 11.72 g/t Au
- Oso Hormiguero vein 29m @ 8.26 g/t Au, 11m @ 9.08 g/t Au
- Falla vein 8m @ 7.28 g/t Au
2.Bramaderos, Southern Ecuador
4,984 ha concessions at ~900m above sea level (asl) The project is supported by excellent infrastructure Adjacent to the Pan American Highway ~100km's from Loja Airport 93% of Ecuador's power is generated from renewables
Potential for low-carbon footprint mining
2.Bramaderos – targeting 10M+oz AuEq
Background image is gold-in-soils
ASX:STM
Immediate priority is to establish a high-grade Mineral Resource Estimate for the Limon epithermal system
Bramaderos Project, Au-Equivalents (Moz's)
1 156Mt at 0.53g/t AuEq for 2.7Moz AuEq
2 30-44Mt at grade between 0.9-1.2g/t Au Eq for 0.8-1.7oz AuEq
3 255-360Mt at grade between 0.40-0.74 g/t AuEq for 3.3-8.6Moz AuEq
2.Brama-Alba + Limon – mineralisation from surface
Brama-Alba: 1.6km long mineralised porphyry system
- Outcropping gold-copper-silver
- MRE undertaken by Tier 1 consultants CSA
- Attractive mining metrics
- Very low strip ratio
- Higher grade domains close to surface
- Significant upside to grow the porphyry resource and define higher grades
Limon: 1.7km x 1.0km epithermal gold-silver system
- Outcropping gold-silver with high-grade domains
- Potential for a significant deeper gold-copper-silver porphyry
2. Limon high-grade at-surface discovery
ASX:STM
Limon is a very significant discovery delivers the potential at-surface highergrade front end for a larger multi-decade development at Bramaderos
- Hills in background • Large 1.7km x 1.0km alteration zone of epithermal gold-silver-base metal mineralisation
- Evidence of multiple epithermal vein occurrences approx. 600m from Central Shoot drilling
- Current interpretation of mineralised structures trending NW and NE, and higher grades developed at the intersections of these structures
- Large porphyry target (>600m diameter) below epithermal system to be drilled at a later stage
18 1 ASX announcement 22 May 2024
2. Limon drilling to establish maiden Resource1
2. Pathway to a multi-decade mining centre
Bramaderos is a world-class gold and copper discovery with multiple pathways to establishing a large 10M+oz AuEq mining centre in southern Ecuador
Stage 1: Establish Limon epithermal as a highergrade gold-silver mine Lower capital cost development
Stage 2: Grow Brama-Alba, Melonal and Copete porphyries from surface Open Pits to feed largetonnage milling operation
Limon to provide the revenue and balance sheet to fund larger gold-copper porphyry development
Stage 3: Convert porphyry targets at Playas, Porotillo, Limon Future exploration growth opportunity
Momentum in Gold and Copper markets
Geopolitical and macroeconomic factors will continue to drive up the price of gold
Regional conflicts, trade restrictions, shift from USD Inflation subsiding, USD rate cuts are imminent
World is faced with enormous challenge to satisfy future global copper demand has been decades in the making
New copper supply coming from difficult jurisdictions Net Zero Transition requires huge increase in copper
Significant room for value appreciation
Sunstone is a gold and copper company in the world-class Ecuador Andean Copper Belt
| ASX | STM |
|---|---|
| Shares on Issue | 5,123M |
| Market Capitalisation 1 | A$41.0M2 |
| Cash and Equities 2 | A$4.9M1,3 |
| Enterprise value | A$36.1M |
| Share ownershipInstitutional & | 1STM raised $6.5m viaPlacement and SPP inSept / October 2024 |
| Family Office35%Other59%Board &Management6% | 2based on share price of A$0.0083At30 September 2022, includes $4.0mfrom SPP received in Oct-244Source: Company public reports andannouncements; refer slide 29 |
Three clear catalysts to drive share price:
-
- Maiden El Palmar MRE and Exploration Target
-
- Advance discussions with strategic partners for assets
-
- Maiden MRE in 2025 at Limon
Exemplary reputation, strong community support
Sunstone appreciates the strong community support that it has at its projects and takes its environmental, social and governance issues very seriously.
Inaugural Sunstone Sustainability Report released 27 November 2023
- Significant environmental monitoring programs across all projects
- Involved in various high-impact community programs at Bramaderos and El Palmar
- Undertakes considerable training programs across a large range of skills for workers and the communities in which we operate
- Sunstone works with the local communities to assist where possible, for example, during the pandemic
- Employment and skills development for local communities
Drilling is fully permitted and environmentally compliant at Bramaderos and El Palmar
About Sunstone Metals
Sunstone has an advanced portfolio of exploration projects in Ecuador. The portfolio comprises:
1. The Bramaderos Gold-Copper Project
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). The Bramaderos gold-copper project is located in Loja province, southern Ecuador, and is highly prospective for the discovery of large porphyry gold-copper systems, and high-grade epithermal gold systems. The Bramaderos concession is host to multiple fertile mineralised systems with significant discovery potential.
The Brama-Alba porphyry gold-copper-silver 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 porphyry gold-copper-silver 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 13 December 2022).
An Exploration Target for the Limon epithermal gold-silver deposit was released on 9 November 2023 (also refer to ASX release dated 5 February 2024) consisting of between approximately 30 and 44 million tonnes at a grade of between 0.9 and 1.2g/t AuEq*, for between 0.9 and 1.7mill oz AuEq*. 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 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 gold equivalent calculation formula for porphyry gold-copper-silver mineralisation 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 (see ASX release dated 13 December 2022)
* The gold equivalent calculation formula for epithermal gold-silver mineralisation 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 over 90% for gold and 90% for silver from metallurgical studies (see ASX release dated 9 November 2022).
In Sunstone's opinion all the elements included in the metal equivalents calculation have reasonable potential to be recovered and sold.
| JORC Classification | 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 |
About Sunstone Metals
Sunstone has an advanced portfolio of exploration projects in Ecuador. The portfolio comprises:
2. The El Palmar Gold-Copper Project
Sunstone holds 74.5% 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.
The El Palmar porphyry gold-copper-silver deposit within the El Palmar concession contains an initial Mineral Resource estimate of 64Mt at 0.60g/t AuEq for 1.2Moz AuEq*. In addition to this is the El Palmar Exploration Target of between 15Moz and 45Moz AuEq* within 1.0Bt to 1.2Bt at a grade between 0.3g/t to 0.7g/t gold and 0.1% to 0.3% copper for contained metal of between 10Moz and 27Moz gold and 1.0 to 3.7Mt copper (see ASX release dated 22 October 2024). 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 applied were US$1,800/oz gold, US$4.50/lb copper and US$22/oz silver. Recoveries are estimated at 90% for gold, 78% for copper (excluded for oxide material), 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.
| Average Grade | Material Content | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| JORCClassification | TonnageMt | AuEq(g/t) | Au(g/t) | Ag(g/t) | Cu(ppm) | Cu(%) | AuEq(Koz) | Au(Koz) | Ag(Koz) | Cu(Kt) | ||
| Indicated | 5 | 0.63 | 0.42 | 0.81 | 1,456 | 0.15 | 100 | 100 | 100 | 7 | ||
| Inferred | 59 | 0.59 | 0.40 | 0.65 | 1,290 | 0.13 | 1,100 | 700 | 1,200 | 70 | ||
| TOTAL | 64 | 0.60 | 0.41 | 0.66 | 1,301 | 0.13 | 1,200 | 800 | 1,300 | 80 |
Competent Persons Statement
Competent Persons Statement - Bramaderos
The information in this report that relates to Mineral Resources is based on information compiled by Mr Aaron Meakin. Mr Aaron Meakin is a full-time employee of CSA Global Pty Ltd and is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Mr Aaron Meakin has sufficient experience 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 the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Aaron Meakin consents to the disclosure of the information in this report in the form and context in which it appears.
Competent Persons Statement – El Palmar
The information in this report that relates to Mineral Resources is based on information compiled by Mr Rob Spiers. Mr Rob Spiers is a full-time employee of Spiers Geological Consultants (SGC) and is a Member of the Australasian Institute of Geoscientists (AIG). Mr Rob Spiers has sufficient experience 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 the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Rob Spiers consents to the disclosure of the information in this report in the form and context in which it appears.
Exploration Target Competent Person – Bramaderos and El Palmar
The information in this report that relates to exploration results and exploration targets and 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.
See ASX announcements
22 October 2024 – El Palmar MRE and Exploration Target 21 August 2024 - More Limon high grade gold and silver in drilling 6 August 2024 - High-grade results expand size of Limon 17 July 2024 - El Palmar trenching enhances significant Resource potential 6 June 2024 - Limon drilling to start in known high-grade areas Limon 22 May 2024 - Visible gold in trenches 15 May 2024 - El Palmar significant gold-copper mineralisation at surface 18 April 2024 - Limon large mineralised system, multiple high-grade clusters 5 February 2024 – Limon Exploration Target – Additional JORC Information 31 January 2024 - Limon gold-silver discovery grows 19 December 2023 – Limon gold-silver discovery grows significantly 27 November 2023 – Sustainability Report released 23 November 2023 – El Palmar gold target, Verde Chico work commencing
ASX announcements (continued)
9 November 2023 – Large Limon Exploration Target 18 October 2023 – Limon – Bumper results, greatly expands scale 12 October 2023 – Limon drilling growing scale 18 September 2023 – High grade, near surface gold at Limon 11 September 2023 - El Palmar 2nd hole confirms T3 strongly mineralised porphyry 15 August 2023 - Limon gold discovery continues to grow 3 July 2023 – High grade gold and silver at Limon, Bramaderos 20 June 2023 – El Palmar T3 gold-copper porphyry discovery 28 April 2023 – El Palmar drilling intersects porphyry copper system 14 April 2023 – Limon emerging as major discovery with visible gold in hole 29 March 2023 – Limon epithermal drilling results 18 January 2023 – Limon delivers porphyry discovery 13 December 2022 – Bramaderos MRE and Exploration Target
Information on Exploration Targets
Bramaderos
The Bramaderos porphyry Exploration Target within the Bramaderos concession is estimated from 3 areas – the extensions to the Brama-Alba system that are not captured in the Mineral Resource estimate (MRE), and mineralisation drilled at the targets of Melonal and Limon porphyry mineralisation.
The Exploration Target does not include known porphyry mineralisation at Sandia, Porotillo, Playas, Copete or Yeso. It was decided to not include these areas because Sunstone has not yet completed any or sufficient drilling in these areas. Some historical drilling has been completed at Porotillo. Further work in these areas will be undertaken and they are expected to contribute to an expanded Exploration Target in future.
Several areas of mineralisation have been identified outside of the area of the MRE. The MRE captured all material within a 'Mineralisation Wireframe', and within an economically modelled pit. Some drill holes that intersected mineralisation are outside the mineralisation wireframe, and either within or outside the pit. Inadequate drilling exists in these areas to show continuity. Furthermore, the effect of the reasonable prospects of economic extraction was to exclude 14% of material. This material has been captured in the Exploration Target.
Six domains were identified as having clear potential for additional mineralisation and these were reviewed either on a depth slice basis, or a block basis. Volumes were calculated and grade was assigned based on nearby data and on comparison with the overall Brama-Alba grade.
The Melonal target is a continuation of the Brama-Alba system. It is geologically grouped with Brama-Alba. Recent drilling by Sunstone, and historical drilling from 2007, has confirmed that the Melonal target is mineralised, and that mineralisation is hosted in rocks the same as those drilled at the nearby Brama-Alba deposit. The mineralised rocks are coincident with a discrete sub-vertical magnetic anomaly measuring up to 400m in diameter, and with a vertical extent of over 1,000m. The Exploration Target for Melonal was considered to a depth of 500m. The Melonal target straddles the approved Bramaderos-01 and Bramaderos-02 concessions.
Sunstone has drilled 8 effective diamond holes at the Limon porphyry target. Mineralisation has been intersected in a number of holes. A trench (LM_TR_01) was completed at Limon prior to drilling in an area of outcropping stockwork veining and minor secondary copper mineralisation. It returned 97m at 0.73g/t gold and 0.23% copper. A recent hole drilled under the trench has intersected similar stockwork veined intrusive and contains chalcopyrite.
This area around Trench TR_LM_01 has been included in the porphyry Exploration Target where more drilling is required to allow inclusion in a Mineral Resource estimate.
This target area will be further explored with drilling programs to be executed over the next two years, subject to the Company's funding ability.
Limon epithermal
The Limon epithermal Exploration Target was estimated on target prospects where there was a combination of diamond drilling (by Sunstone), geological mapping, trenching, geochemistry (soils) and to a lesser extent geophysical data (magnetics) which could support the geological and mineralisation concept model.
The Limon alteration area has been covered with soil sampling on a 50m x 50m grid. This survey is an important exploration method which identified several gold-in soil anomalies that are primary targets for drilling. The soil geochemical data is further interpreted using related element associations typical of epithermal systems, such as 27
areas of somewhat coincident gold, silver, zinc, lead, copper, tellurium and arsenic. Target areas have also been strengthened using alteration mineralogy from a hand-held Terraspec instrument. These data assist in mapping the alteration zones most likely to be associated with epithermal mineralisation.
Drilling at Limon has also intersected a high sulphidation system in holes LMDD004 and 006, which included intersections of 13.3m at 0.43% copper and 0.11g/t gold, within 59.6m at 0.16% copper.
Standard geological mapping and rock chip sampling has also been undertaken acrossthe Limon target area.
The volume ranges for the initial Exploration Target in the Central Shoot were estimated using cross sections and 3-D modelling in Leapfrog software, based upon an analysis of drilling, mineralised rock types, grade distribution, potential for extrapolation of mineralisation continuity and interpreted geological risk.
The volume ranges for the other components were estimated from geological interpretation and guided by extent of surface geochemical anomalism, supplemented by preliminary drilling. A conservative approach was taken to the potential distribution of gold and silver bearing veins.
This target area will be further explored with drilling programs to be executed over the next two years, subject to the Company's funding ability.
El Palmar
The Exploration Target within the El Palmar concession is estimated from within the T1, T2 and T3 areas.
The Exploration Target does not include interpreted or known porphyry mineralisation at the T4 and T5 target areas. It was decided to not include these areas because Sunstone has not yet completed any drilling at T4 and has conducted only minor drilling at T5. Further work in these areas will be undertaken and they are expected to contribute to an expanded Exploration Target in future.
The components of the exploration target are based on a combination of diamond drilling conducted by Codelco (during 2012) and by Sunstone (during 2022 and 2023), ground magnetics, multi-element soil sampling, multielement rock chip and channel sampling, mulit-element trench sampling and deep magnetic inversion anomalies modelled from ground magnetic data.
Wireframes of the areas within the Exploration Target areas were created in Leapfrog software using data interpreted from the Mineral Resource block model, iso-surface contours of modelled magnetic intensities, and grade ranges in available diamond drill holes. The volumes were multiplied by a specific gravity of 2.72g/cc (the average density of the T1 resource) to determine the tonnage range of the target. Grade ranges were determined with reference to drill intersection and surface rock chip assays.
The next step in testing these targets is primarily diamond drill testing. The targets have been adequately defined, but drill programs still require detailed planning regarding the number of drill holes, their azimuths, dips, and final depths. Drilling of these targets will be undertaken over the next two years, subject to the company's funding availability.
Peer Comparison Data (page 13)
| Mineral Resources | Measured | Indicated | Inferred | Total | ||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Tonnes | Grade | Grade | Grade | Grade | Gradeg/t | OuncesMoz | Tonnes | Grade | Grade | Grade | Grade | Gradeg/t | OuncesMoz | Tonnes | Grade | Grade | Grade | Grade | Gradeg/t | OuncesMoz | Tonnes | Grade | Grade | Grade | Grade | Gradeg/t | OuncesMoz | |||
| Company | Mine | Stage | Mt | g/t Au | g/t Ag | Cu % | Mo % | AuEq | AuEq | Mt | g/t Au | g/t Ag | Cu % | Mo % | AuEq | AuEq | Mt | g/t Au | g/t Ag | Cu % | Mo % | AuEq | AuEq | Mt | g/t Au | g/t Ag | Cu % | Mo % | AuEq | AuEq |
| Newmont | Cadia Hill | Pre-development* | 310 | 0.7 | - | 0.2 | 0.9 | 9 | 14 | 0.49 | - | 0.2 | 0.9 | 0 | 28 | 0.2 | - | 0.1 | 0.4 | 0 | 352 | 0.6 | - | 0.2 | - | 0.9 | 10 | |||
| Newmont | Boddington | Producing | 98 | 0.6 | - | 0.1 | 0.7 | 2 | 170 | 0.54 | - | 0.1 | 0.7 | 4 | 5 | 0.5 | - | 0.1 | 0.6 | 0 | 273 | 0.5 | - | 0.1 | - | 0.7 | 6 | |||
| Lundin Mining | Candelaria Open Pit | Pre-development | 477 | 0.1 | 1.4 | 0.4 | 0.7 | 10 | 53 | 0.08 | 0.95 | 0.3 | 0.4 | 1 | - | - | - | - | - | - | 530 | 0.1 | 1.4 | 0.4 | - | 0.6 | 11 | |||
| Lundin Mining | Chapada Open Pit | Pre-development | 509 | 0.1 | - | 0.3 | 0.7 | 11 | 411 | 0.11 | - | 0.2 | 0.6 | 8 | - | - | - | - | - | - | 920 | 0.1 | - | 0.2 | - | 0.6 | 19 | |||
| Lundin Mining | Caserones | Pre-development | 391 | - | - | 0.3 | 0.0 | 0.4 | 5 | 1,111 | - | - | 0.3 | 0.0 | 0.3 | 12 | 186 | - | - | 0.2 | 0.0 | 0.3 | 2 | 1,688 | - | - | 0.3 | 0.0 | 0.4 | 19 |
| Hudbay | Constancia | Producing | 78 | 0.0 | - | 0.2 | 0.1 | 0.5 | 1 | 93 | 0.04 | - | 0.2 | 0.1 | 0.6 | 2 | 30 | 0.1 | - | 0.2 | 0.1 | 0.6 | 1 | 201 | 0.0 | - | 0.2 | 0.1 | 0.6 | 4 |
| Xanadu | Kharmagtai | Pre-development | - | - | - | - | - | - | 890 | 0.21 | - | 0.3 | 0.6 | 17 | 590 | 0.2 | 0.3 | 0.5 | 10 | 1,480 | 0.2 | - | 0.3 | - | 0.6 | 27 | ||||
| Solgold | Cascabel | Pre-development | 1,576 | 0.4 | 1.2 | 0.4 | 1.1 | 57 | 1,437 | 0.20 | 0.71 | 0.3 | 0.7 | 32 | 607 | 0.2 | 0.6 | 0.3 | 0.7 | 13 | 3,620 | 0.3 | 0.9 | 0.3 | - | 0.9 | 102 | |||
| Ore Reserves | Proven | Probable | Total Ore Reserves | Total Ore Reserves and Mineral Resources | ||||||||||||||||||||||||||
| Tonnes | Grade | Grade | Grade | Grade | Grade | Ounces | Tonnes | Grade | Grade | Grade | Grade | Grade | Ounces | Tonnes | Grade | Grade | Grade | Grade | Grade | Ounces | Tonnes | Grade | Grade | Grade | Grade | Grade | Ounces | |||
| (g/tAuEq) | (MozAuEq) | (g/tAuEq) | (MozAuEq) | (g/tAuEq) | (MozAuEq) | (g/tAuEq) | (MozAuEq) | |||||||||||||||||||||||
| Company | Mine | Stage | (000's) | (g/t Au) | (g/t Ag) | (Cu %) | (Mo g/t) | (000's) | (g/t Au) | (g/t Ag) | (Cu %) | (Mo g/t) | (000's) | (g/t Au) | (g/t Ag) | (Cu %) | (Mo g/t) | (000's) | (g/t Au) | (g/t Ag) | (Cu %) | (Mo g/t) | ||||||||
| Newmont | Cadia Hill | Pre-development* | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 352 | 0.6 | - | 0.2 | - | 0.9 | 10 | ||
| Newmont | Boddington | Producing | 215 | 0.7 | - | 0.1 | 0.8 | 6 | 193 | 0.64 | - | 0.1 | 0.8 | 5 | 408 | 0.7 | - | 0.1 | - | 0.8 | 10 | 681 | 0.6 | - | 0.1 | - | 0.8 | 17 | ||
| Lundin Mining | Candelaria Open Pit | Pre-development | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 530 | 0.1 | 1.4 | 0.4 | - | 0.6 | 11 | ||
| Lundin Mining | Chapada Open Pit | Pre-development | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 920 | 0.1 | - | 0.2 | - | 0.6 | 19 | ||
| Lundin Mining | Caserones | Pre-development | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 1,688 | - | - | 0.3 | 0.0 | 0.4 | 19 | ||
| Hudbay | Constancia | Producing | 466 | 0.0 | - | 0.3 | 0.1 | 0.6 | 9 | 62 | 0.03 | - | 0.2 | 0.1 | 0.5 | 1 | 528 | 0.0 | - | 0.3 | 0.1 | 0.6 | 10 | 729 | 0.0 | - | 0.2 | 0.1 | 0.6 | 14 |
| Xanadu | Kharmagtai | Pre-development | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 1,480 | 0.2 | - | 0.3 | - | 0.6 | 27 | ||
| Solgold | Cascabel | Pre-development | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 3,620 | 0.3 | 0.9 | 0.3 | - | 0.9 | 102 |
| Recovery percentages | |||||||
|---|---|---|---|---|---|---|---|
| Company | Mine | Source | Gold equivalent formula | Au | Ag | Cu | Mo |
| Newmont | Cadia Hill | Newcrest 1997 Annual Report | 0.76 | - | 0.85 | - | |
| Newmont | Boddington | Newmont 2023 Reserves and Resources Results | Gold equivalent ounces and grade arecalculated using United States dollar pricing | 0.83 | - | 0.78 | - |
| Lundin Mining | Candelaria Open Pit | 31 December 2023 Mineral Resources Estimate | for Gold ($2,000/oz.), Copper ($9,500/t), | 0.92 | 0.70 | 0.80 | - |
| Lundin Mining | Chapada Open Pit | 31 December 2023 Mineral Resources Estimate | Silver ($50.00/oz.) and Molybdenum | 0.57 | 0.80 | 0.83 | - |
| Lundin Mining | Caserones | 31 December 2023 Mineral Resources Estimate | ($20,000/t), and metallurgical recoveries foreach metal on a site by site basis, as metal | - | - | 0.83 | 0.60 |
| Hudbay | Constancia | 31 December 2023 Mineral Resources Estimate | x [(metal price x metal recovery) / (gold | 0.86 | - | 0.88 | 0.60 |
| Xanadu | Kharmagtai | ASX announcement, 21 August 2024 | price x gold recovery)] from the respectiveResource and Reserve statements. | 0.81 | - | 0.82 | - |
| SolgoldCascabel | Cascable feasibility update, 16 February 2024 | 0.73 | - | 0.88 | - |
* Cadia Hill Mineral Resource ounces are shown pre-development in 1997 to provide a relevant comparison with El Palmar.
** Ore Reserves have been added to companies as indicated to provide a like-for-like comparison with other deposits.
https://operations.newmont.com/\_doc/Newmont-2023-Reserves-and-Resources-Release.pdf
https://hudbayminerals.com/investors/reserves-and-resources/default.aspx
https://lundinmining.com/operations/reserves-and-resources/
https://solgold.com.au/solgold-plc-announces-completion-of-new-cascabel-pre-feasibility-study/
https://www.xanadumines.com/kharmagtai/resources/
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02841127-2A1542184
Peer Comparison Data (page 22)
| Ordinay Fully | Mineral | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASX | Share price | Paid Shares on | Date of | Market Cap | Enterprise | Resource | EV/ | |||
| Ticker | Company Name | ($/share)* | issue (M) | Appendix 2A | ($M) | Net Debt | Value | Moz AuEq | Oz AUEq | Comments |
| STM | Sunstone Metals | 0.007 | 5,149 | 01-Nov-24 | 36 | (3) | 33 | 3.9 | 9 | Net Debt Source: 30 June 2024 Annual Report |
| XAM | Xanadu Mines | 0.055 | 1,816 | 07-Nov-24 | 100 | (5) | 95 | 14.1 | 7 | Net Debt Source: 30 June 2024 Interim Financial Report; Mineral Reourse adjusted for XAM's 38.25% share |
| CEL | Challenger Gold | 0.051 | 1,532 | 08-Nov-24 | 78 | 10 | 88 | 7.0 | 13 | Net Debt Source: 30 June 2024 Interim Financial Report |
| ALK | Alkane Resources | 0.470 | 605 | 18-Oct-24 | 284 | 3 | 288 | 16.3 | 18 | Net Debt Source: 30 June 2024 Annual Report |
| TTM | Titan Minerals | 0.415 | 196 | 06-Nov-24 | 81 | 2 | 83 | 3.5 | 24 | Net Debt Source: 30 June 2024 Interim Financial Report; USD amounts translated at 0.65 |
| STK | Strickland Metals | 0.078 | 2,207 | 27-Sep-24 | 172 | (25) | 148 | 4.8 | 31 | Net Debt Source: 30 June 2024 Annual Report |
| BGD | Barton Gold Holdings | 0.250 | 219 | 29-May-24 | 55 | (4) | 50 | 1.6 | 31 | Net Debt Source: 30 June 2024 Annual Report |
| STN | Saturn Metals | 0.215 | 309 | 23-Aug-24 | 66 | (4) | 62 | 1.8 | 34 | Net Debt Source: 30 June 2024 Annual Report |
| Measured | Indicated | Inferred | Total Mineral Resources | |||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ASX | Tonnes | Grade | Grade | Grade | Gradeg/t | OuncesMoz | Tonnes | Grade | Grade | Grade | Gradeg/t | OuncesMoz | Tonnes | Grade | Grade | Grade | Gradeg/t | OuncesMoz | Tonnes | Grade | Grade | Grade | Gradeg/t Au | OuncesMoz | ||||
| Ticker | Company Name | Mt | g/t Au | g/t Ag | Cu % | AuEq | AuEq | Mt | g/t Au | g/t Ag | Cu % | AuEq | AuEq | Mt | g/t Au | g/t Ag | Cu % | AuEq | AuEq | Mt | g/t Au | g/t Ag | Cu % | Eq | AuEq | |||
| STM | Sunstone Metals | - | - | - | - | - | - | 14 | 0.4 | 1.0 | - | 0.5 | 0.3 | 206 | 0.4 | 1.1 | - | 0.4 | 3.6 | 220 | 0.4 | 1.1 | - | 0.6 | 3.9 | |||
| XAM | Xanadu Mines | - | - | - | - | - | - | 1,300 | 0.2 | - | 0.2 | 0.5 | 22.8 | 900 | 0.1 | - | 0.2 | 0.5 | 14.1 | 2,200 | 0.2 | - | 0.2 | 0.5 | 36.9 | |||
| CEL | Challenger Gold | - | - | - | - | - | - | 48 | 1.1 | 5.3 | - | 1.2 | 1.8 | 281 | 0.4 | 2.9 | 0.1 | 0.6 | 5.2 | 329 | 0.5 | 3.2 | 0.1 | 0.7 | 7.0 | |||
| ALK | Alkane Resources | 3 | 2.6 | - | - | 2.6 | 0.2 | 553 | 0.4 | - | - | 0.6 | 11.1 | 263 | 0.4 | - | - | 0.6 | 5.2 | 820 | 0.4 | - | - | 0.6 | 16.3 | |||
| TTM | Titan Minerals | - | - | - | - | - | - | 18 | 2.1 | 14.7 | - | 2.4 | 1.4 | 25 | 2.3 | 16.4 | - | 2.6 | 2.2 | 44 | 2.2 | 15.7 | - | 2.5 | 3.5 | |||
| STK | Strickland Metals | - | - | - | - | - | - | - | - | - | - | - | - | 164 | 0.6 | 4.0 | 0.1 | 0.9 | 4.8 | 164 | 0.6 | 4.0 | 0.1 | 0.9 | 4.8 | |||
| BGD | Barton Gold Holdings | - | - | - | - | - | - | 27 | 1.0 | - | - | 1.0 | 0.8 | 25 | 0.9 | - | - | 0.9 | 0.8 | 52 | 0.9 | - | - | 0.9 | 1.6 | |||
| STN | Saturn Metals | 5 | 0.6 | - | - | 0.6 | 0.1 | 54 | 0.5 | - | - | 0.5 | 0.9 | 47 | 0.6 | - | - | 0.6 | 0.8 | 105 | 0.5 | - | - | 0.5 | 1.8 |
| Recovery percentages | |||||||
|---|---|---|---|---|---|---|---|
| ASXTicker | Company Name | Stage of project | Mineral Resource Source | Gold equivalent formula | Au | Ag | Cu |
| XAM | Xanadu Mines | Pre-development | ASX Announcement, 14 October 2024 | Gold equivalent ounces and grade are | 78% | n/a | 90% |
| CEL | Challenger Gold | Pre-development | 31 December 2023 Annual Report | calculated using United States dollar pricing for | 85-95% | 60-90% | 85% |
| ALK | Alkane Resources | Tomingley: production/development; Boda & Kaiser: (14.7Moz AuEq) pre-developmemt | 30 June 2024 Annual Report | Gold ($2,000/oz.), Copper ($9,500/t), Silver | 71-81% | n/a | 81-87% |
| TTM | Titan Minerals | Pre-development | ASX Announcement, 24 October 2024 | ($50.00/oz.) and Molybdenum ($20,000/t), and | 93% | 70% | n/a |
| STK | Strickland Metals | Pre-development | 30 June 2024 Annual Report | metallurgical recoveries for each metal on a siteby site basis, as metal x [(metal price x metal | 80% | 80% | 80% |
| BGD | Barton Gold Holdings | Pre-development | 30 June 2024 Annual Report | recovery) / (gold price x gold recovery)] from the | n/a | n/a | n/a |
| STN | Saturn Metals | Pre-development | 30 June 2024 Annual Report | respective Resource and Reserve statements. | n/a | n/a | n/a |
* Share price at close of trading 14 November 2024
Ecuador
| Capital | Quito |
|---|---|
| Population | 18,320,382 (2024) |
| Form Of Government | Multiparty republic with one legislative house (National Assembly) |
| Official Language | Spanish |
| Total Area (Sq Km) | 256,700 |
| Length | 650km (~Sydney to Cobar, or ~Perth to Kalgoorlie) |
| Monetary Unit | US dollars |
| Density: Persons Per Sq Km | 71.4 |
| Urban-Rural Population | Urban: 63% • Rural: 37% |
| Literacy Rate | Male: (2016) 95.4% • Female: (2016) 93.3% |
| Gross National Income Per Capita (US$) | $6,391 |
| Mining Exports (US$) | $3.32 billion in 2023; $2.78 billion (+25% on 2021, 2021 figure was +541% vs 2019)(by comparison 2022 mining exports from Peru $37.7 billion) |
| Exports Top 4 in order | Oil, Prawns, Bananas, Metals |
CALL +61 3 7044 2627
EMAIL [email protected]
WEB ASX:STM sunstonemetals.com.au
