Sunshine Metals (SHN.AX) has released an updated resource calculation on the Liontown project in Queensland on the back of a drill program that was predominantly focusing on grade control. The data gathered from this drill program allowed the company to increase the Liontown resource to 7.3 million tonnes at an average grade of 3.19 g/t gold-equivalent (or 10.9% zinc-equivalent) for a total of 745,000 ounces gold-equivalent contained in the resource.
This will pave the way for an updated Liontown mining study, which should be published in August. The initial mine study (published in February 2026) was a small operation with an anticipated production of approximately 75,000 ounces of gold, using a toll milling approach, assuming one of the mills in the vicinity can handle the rock.
The updated mine study will incorporate additional tonnage, but the economic study will likely have to use lower metals prices versus the A$6,500/oz gold price and the A$100/oz silver price used earlier this year.
Disclosure: The author has no position in Sunshine Metals. This post is for educational purposes only; be mindful investing in junior mining stocks is risky and you may lose your entire investment if things go wrong. Please read the disclaimer.
