Sunshine Metals' Promising Discovery at Highway East
SHN (SHN) Share Update November 2024 Tuesday 12th
Sunshine Metals Discovers Significant Sulphides at Highway East
Sunshine Metals Limited (ASX: SHN) has announced a significant discovery of zinc sulphides at Highway East, part of the Ravenswood Consolidated Project, suggesting potential copper and gold mineralisation similar to the nearby Highway Reward Mine.
Instant Summary:
- Completed RC drill program with 9 holes totaling 1,830m at Truncheon and Highway East.
- Significant zinc sulphide intersection: 14m @ 0.87% Zn from 40m in hole 24HERC002.
- Zinc acts as a pathfinder to copper-gold mineralisation, analogous to Highway Reward Mine.
- Electromagnetic geophysical survey planned for early 2025 to identify chalcopyrite bodies.
Exploration Program and Findings
Sunshine Metals has completed a reverse circulation (RC) drilling program at Truncheon and Highway East, targeting copper and gold mineralisation. The program consisted of 9 holes totaling 1,830 meters. A significant intersection of zinc sulphides was found in hole 24HERC002, with 14 meters at 0.87% zinc from a depth of 40 meters.
This discovery is significant because zinc forms a halo to the chalcopyrite-pyrite mineralisation at the Highway Reward Mine, located 2.7 kilometers west of Highway East. The presence of sphalerite, a zinc sulphide, in four of the six holes drilled at Highway East suggests proximity to copper-gold deposits.
Future Exploration Plans
Sunshine Metals plans to conduct an electromagnetic geophysical survey in early 2025 to differentiate between chalcopyrite and pyrite dominant mineral assemblages. This survey aims to identify potential massive sulphide pipes similar to those at the Highway Reward Mine.
Sunshine's Managing Director, Dr. Damien Keys, expressed optimism about the findings, noting that the drilling has provided the first serious test of the Highway East IP and soil anomaly. The intersection of semi-massive pyrite and zinc mineralisation is considered highly encouraging.
The discovery of zinc sulphides at Highway East is promising for Sunshine Metals, as it suggests the presence of copper and gold deposits similar to those at the Highway Reward Mine. This could lead to increased investor interest and a potential rise in the company's stock value. The planned electromagnetic survey will further refine exploration targets, potentially leading to more discoveries.
Investor Reaction:
Analysts are likely to view this discovery as a positive development for Sunshine Metals, given the potential for significant copper-gold deposits. The company's strategic approach and future exploration plans will be closely watched by investors.
Conclusion:
Sunshine Metals' recent discovery at Highway East could be a game-changer for the company. Investors should keep an eye on upcoming exploration results and the planned geophysical survey in early 2025. This discovery highlights the potential for significant mineral deposits in the Ravenswood Consolidated Project.