A new research report has highlighted the world-class potential of Sunstone Metals’ (STM) Bramaderos gold-copper discovery in Southern Ecuador, saying it could host more than 10Moz of gold-equivalent.

Taylor Collison analyst Mark Gordon says the recent hit of 177m at 1.1gpt AuEq at the Limon prospect within Bramaderos had been followed up with a hit of visible gold 660m downhole.

“This indicates the potential for at least a +550m vertical extent of epithermal mineralisation at Limon,” Gordon says in his new report.

“This possibly reflects a telescoped system, with the epithermal mineralisation overprinting the pre-existing porphyry copper-gold mineralisation that has been intersected throughout the prospect.”

Gordon has put a buy recommendation on Sunstone, which has a market capitalisation of just $86m based on its current share price of 3.4c.

He says the follow-up drilling now underway at Limon “could define a sizable gold resource that would provide a +1gpt AuEq kick-starter to an overall project”.

That would then bring the recently defined Bramaderos resource of 2.7Moz of AuEq into play.

“Our view is that the Bramaderos porphyry/epithermal cluster has the potential to host over 10Moz AuEq, with this reinforced by the additional 3.3 Moz to 8.6 Moz AuEq in the exploration target,” Gordon says.

“A sizable, near-surface higher-grade starter resource has the potential to quickly pay off capital and provide significant cash to pay for further development of a longer-term operation that will include lower grade mineralisation down the track.

“This historically has been a typical scenario for porphyry deposits.”

Gordon draws parallels between Bramaderos and the Tujuh Bukit copper-gold project in Indonesia, which coincidentally was discovered by the Sunstone team, including managing director Malcolm Norris, GM-Geology Dr Bruce Rohrlach and GM – Studies and Technical Services Ray Robinson.

Tujuh Bukit has produced ~900,000oz of gold to date at an all-in sustaining cost of ~US$650/oz, at an average of 150,000oz per year.

“Another example of a ~1gpt AuEq project is McPhillamy’s in NSW, which has recently received final approvals,” he says.

“This has the potential to produce ~200,000ozpa of gold at a 7Mtpa throughput through a conventional cyanidation circuit.”




This article was developed in collaboration with Sunstone Metals, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.