Nov 12, 2024

Sunstone Metals Hits 113m @ 0.64g/t AuEq at Copete Discovery, Bramaderos Project, Ecuador

Introduction:

Sunstone Metals Ltd (ASX: STM) (Market Cap: $29M | Last Close: $0.007 | Cash: ~$4.9M) has reported significant gold-copper porphyry mineralization from trench sampling at its newly discovered Copete target within the Bramaderos Project in southern Ecuador, highlighted by 113m at 0.64g/t gold-equivalent from surface.

Drill Results:

113m @ 0.64g/t AuEq (0.51g/t Au, 0.07% Cu, 1.2g/t Ag) from surface (within 214m @ 0.50g/t AuEq) [Trench ML-01]

Project Overview:

The Bramaderos Project is located in southern Ecuador. With the addition of the Copete discovery, the Bramaderos cluster of gold-copper mineralized bodies now covers an area of 2km x 1.8km.

The Bramaderos Project currently contains an initial Mineral Resource estimate of 156Mt at 0.53g/t AuEq for 2.7Moz AuEq. Additionally, it has a porphyry Exploration Target of between 3.3Moz and 8.6Moz AuEq within 255Mt to 360Mt at a grade between 0.40 and 0.74g/t AuEq.

Program Details:

The current program focused on trench sampling at the newly identified Copete target. The discovery is located next to the Brama-Alba Resource and the large Melonal target. Copper is interpreted to be leached at surface, with expectations of higher copper grades at depth. The Copete target remains largely under-explored, with no drilling conducted by Sunstone to date.

Understanding These Results:

The trench sampling results confirm significant surface porphyry gold-copper mineralization at Copete. The 113m at 0.64g/t AuEq intersection represents a substantial width of mineralization from surface, indicating potential for bulk tonnage deposits.

The discovery of Copete expands the known mineralized footprint at Bramaderos and suggests potential for a large open pit operation. Higher copper grades are anticipated at depth, based on surface leaching interpretations and individual samples returning up to 0.28% copper over 2m intervals.

Management Commentary:

Sunstone Managing Director Patrick Duffy stated:

“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 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”.

Next Steps & Catalysts:

Sunstone is currently engaged in partnership discussions with third parties for both the Bramaderos and El Palmar projects. These discussions aim to accelerate exploration and resource growth to unlock the full value of the projects.

Future work at Copete is likely to include drilling to test the extent and grade of mineralization at depth, particularly to investigate potentially higher copper grades below the leached surface zone.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,622/oz (November 12, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

Gold and copper continue to be strategic metals with strong long-term demand fundamentals. Ecuador is emerging as a significant jurisdiction for porphyry copper-gold exploration and development, with several discoveries identified in recent years.

Conclusion:

The Copete discovery at Bramaderos represents a significant expansion of the known mineralized footprint, potentially increasing the project's overall resource base. With a growing cluster of porphyry targets and the potential for a large open-pit operation, Bramaderos is positioning itself as a notable gold-copper prospect in Ecuador. Upcoming drilling and partnership discussions could serve as key catalysts for Sunstone Metals in the near term.

Sources:

STM Drill Results Announcement

Additional Figures:

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Nov 21, 2024