Sunstone raises $12m to continue gold-copper hunt in Ecuador
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Sunstone’s ongoing exploration successes at Bramaderos and El Palmar has investors demonstrating their confidence for more by backing a $12m placement.
Existing institutional and sophisticated shareholders and new institutional investors have provided firm commitments for the placement priced at 2.6c per share to fund exploration at the two gold-copper projects in Ecuador.
At the Bramaderos project, drilling will focus on the Limon target where hole LMDD017 returned a 177m intersection grading 1.1 grams per tonne (g/t) gold equivalent from surface.
Assays are pending for a further four holes with drilling ongoing.
Sunstone Metals (ASX:STM) is also continuing drilling at its El Palmar project where drilling at the T2/T3 target has intersected a porphyry copper system with chalcopyrite, transitional potassic alteration, copper-sulphide-bearing A vein and B vein stockworks, and anomalous copper readings in pXRF results.
The presence of magnetite veins at depth also give confidence that this system correlates with a large cluster of magnetic bodies at the T3 target.
“The funds from this raising will be used to advance our highly prospective Limon gold-silver target at Bramaderos towards our stated goal of identifying a 10Moz gold district,” managing director Malcolm Norris said.
“Additional drilling will allow us to build on our existing mineral resources and exploration target.
“At El Palmar, further drilling will allow us to define the extent of mineralisation at the promising T3 target, with the ultimate aim of making a significant copper-gold porphyry discovery to add to the discovery already delivered at the T1 target.
Bramaderos is located in Loja province and is highly prospective for the discovery of large porphyry gold-copper systems, and high-grade epithermal gold systems.
The concession is host to multiple fertile mineralised systems with significant discovery potential.
It also contains the Brama-Alba deposit, which has a Mineral Resource estimate of 156Mt grading 0.53g/t gold equivalent for 2.7Moz of gold equivalent contained resources.
In addition to the MRE of 2.7Moz gold equivalent, Bramaderos also has an Exploration Target of between 255Mt and 360Mt at a grade of 0.4g/t to 0.74g/t gold equivalent for 3.3 to 8.6Moz gold equivalent.
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.