Sunstone Metals Limited (ASX:STM) Reports Strong Resource Estimates
Key Highlights
Sunstone Metals Limited (ASX:STM) has announced substantial developments regarding its El Palmar and Bramaderos projects. The newly released maiden Mineral Resource estimate at El Palmar indicates 1.2 million ounces of gold equivalent (AuEq), marking a significant step for the company. The exploration target for El Palmar ranges between 15 million to 45 million ounces of gold equivalent.
Additionally, trench sampling at the new Copete gold-copper porphyry target in the Bramaderos Project has confirmed promising surface mineralisation, including intersections of up to 113m at 0.64g/t AuEq. The company continues its discussions for potential partnerships aimed at enhancing exploration efforts and resource expansion.
Projects Overview
At the El Palmar Gold and Copper Project, Sunstone has established a high conviction exploration target of between 1.0 billion to 1.2 billion tonnes at grades of approximately 0.3g/t to 0.7g/t gold and 0.1% to 0.3% copper. This projection implies a potential for 10 million to 27 million ounces of gold and 1.0 to 3.7 million tonnes of copper.
In the Bramaderos Project, the Copete target adds to the existing resource base with new surface samples enhancing the overall gold-copper mineralisation picture. This discovery emphasizes the potential for increasing the current inferred resources of 2.7 million ounces of gold equivalent at the Brama-Alba deposit.
Financial and Operational Updates
Sunstone raised $6.5 million in late 2024 through an institutional share placement and a Share Purchase Plan, bolstering its exploration budget. The company has implemented a strategic reduction in expenditures, which includes a decrease in workforce and office closures, aiming to streamline operations.
Managing Director Patrick Duffy remarked, “We know we have made substantial copper and gold discoveries with huge upside at our two projects. These discussions clearly have the potential to drive rapid value creation by applying significant financial and technical resources to our exploration success.”
As of December 31, 2024, Sunstone’s cash position stood at $2.3 million, providing a foundation to pursue upcoming opportunities and exploration programs.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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