Sunstone Metals Expands High-Grade Gold-Silver Zone at Limon Deposit, Ecuador
STM (STM) Share Update August 2024 Monday 5th
Sunstone Metals Expands High-Grade Gold-Silver Zone at Limon Deposit
Sunstone Metals Ltd (ASX: STM) has announced promising new drilling results from its Limon gold-silver deposit in southern Ecuador, highlighting the potential for significant resource expansion.
Instant Summary:
- Drilling expands Central Shoot with notable results, including 21.5m at 1.51g/t gold and 6.9g/t silver.
- High-grade zones identified, such as 4.6g/t gold and 800g/t silver over 0.8m.
- Broad intersection of 246m of gold and silver grading 0.53g/t AuEq from 14m.
- New mineralized zone defined on the south side of Central Shoot.
- Western Target 1 drilling intersects anomalous silver from surface.
- Infill and expansion soil sampling defines new target areas with results up to 3g/t gold.
Detailed Drilling Results
Sunstone Metals continues to expand the Central Shoot at the Limon deposit with strong drilling results. Notable intersections include 21.5 meters at 1.51 grams per tonne (g/t) gold and 6.9 g/t silver from 238.5 meters in drill hole LMDD047. High-grade zones within this intersection include 4.6 g/t gold and 800 g/t silver over 0.8 meters from 27 meters.
These results are part of a broader intersection of 246 meters of gold and silver grading 0.53 g/t gold equivalent (AuEq) from 14 meters, supporting Sunstone's plan to establish a near-surface resource at Limon to support open-pit mining.
New Mineralized Zone and Western Target 1
The results from hole LMDD047 are particularly encouraging as they define a new and significant mineralized zone on the south side of the Central Shoot. This was previously suggested by earlier drilling but is now better defined and understood.
Drilling at the Western Target 1 intersected anomalous silver from surface, highlighting the potential for further growth. Although the zone of very high-grade gold in surface trenching was not intersected, the shallow drilling results allow for a reinterpretation of the structural model, with follow-up drilling planned.
Soil Sampling and Future Drilling
Infill and expansion soil sampling has been ongoing, with significant results including a new gold soil sample greater than 3 g/t located approximately 250 meters east of the Central Shoot. The current 1,500-meter drill program is nearing completion, and additional assay results for seven more drill holes are expected in the coming weeks.
Sunstone Managing Director Patrick Duffy stated that the latest results continue to expand the Limon discovery and show strong potential for ongoing growth. 'We are creating value with virtually every drill hole because we continue to expand the known mineralization and increase our understanding of the Limon system,' Mr. Duffy said.
These results will help underpin a maiden resource estimate at Limon, with the widths, grades, and shallow nature of the mineralization supporting open-pit mining scenarios that will complement the Bramaderos porphyry discoveries.
The latest drilling results from Sunstone Metals are likely to positively impact the company's stock as they indicate significant resource expansion potential at the Limon deposit. The identification of high-grade zones and new mineralized areas supports the company's strategy for open-pit mining, which could enhance the project's economic viability.
Investor Reaction:
Analysts are likely to react positively to these results, given the potential for resource expansion and the strategic importance of the Limon deposit. The ongoing drilling program and upcoming assay results will be closely watched by investors, as they could further validate the project's potential.
Conclusion:
Investors should keep an eye on Sunstone Metals' upcoming assay results and the finalization of the maiden resource estimate at Limon. The company's ability to expand its mineralized zones and define new targets will be crucial for its long-term growth and stock performance.