Sunstone Metals Restarts El Palmar Drilling to Test 15 to 45Moz Gold Target
Key Takeaways
- Two rigs are now mobilised at El Palmar, with the first drilling and the second due in about one week, but no drill results are reported in this update.
- Four holes totalling roughly 3,650m will test the deep T3 porphyry target and two magnetic anomalies near the Toachi Fault and the T1 pit.
- The 15 to 45Moz AuEq Exploration Target is conceptual and sits far above the current 1.2Moz AuEq Resource from 64Mt at 0.60g/t AuEq.
- Earlier T3 holes returned 190m at 0.58g/t AuEq and 251m at 0.56g/t AuEq, giving the new deep holes a proven signal to follow.
- The updated Bramaderos Resource Estimate is due in the December Quarter, while drill result timing and the outcome of the funding review remain undisclosed.
Drilling restarts at El Palmar with two rigs targeting deep gold-copper porphyry
Sunstone Metals has restarted exploration drilling at the El Palmar gold-copper project in northern Ecuador, with two rigs now mobilised. The first rig is now drilling, and the second is scheduled to start in approximately one week.
The campaign targets the deeper zones that form part of the separate El Palmar JORC Exploration Target. No drill results are reported in this announcement, so this is a start-of-work update, not a discovery.
Two figures are easy to blur here, so it helps to keep them apart. El Palmar’s maiden Mineral Resource is 1.2Moz AuEq (gold-equivalent ounces, which convert copper and silver into a gold-equivalent figure) from 64Mt at 0.60g/t AuEq, and it extends from surface.
The Exploration Target is a different thing: 15 to 45Moz AuEq within 1.0 to 1.2Bt at 0.3 to 0.7g/t gold and 0.1 to 0.3% copper. Two deeper porphyry targets form a substantial part of it.
For you as an investor, the drilling tests whether some of that conceptual upside can move toward Resource growth. Managing Director Patrick Duffy said:
Patrick Duffy, Managing Director
“We are delighted to have drill rigs returning to El Palmar to test a series of high-conviction exploration targets, including the deep gold-copper porphyry target at T3…”
He added that success from the drilling “is expected to strengthen our confidence in these targets and their significant potential to grow the El Palmar Mineral Resource.”
The caveat matters. The potential quantity and grade of the Exploration Target is conceptual in nature, there has been insufficient exploration to estimate a Resource, and it is uncertain if further exploration will result in one.
When big ASX news breaks, our subscribers know first
Four-hole, 3,650m program targets T3, T1 and the Toachi Fault
Four diamond drillholes totalling approximately 3,650m are planned for the next stage of drilling.
What each hole will test
| Hole | Approx. length | Target | Purpose |
|---|---|---|---|
| EPDD029 | **1,400m** | Southwestern side of deep T3 porphyry target | Test the T3 target |
| EPDD030 | **400m** | Strong magnetic anomaly within the Malaute Formation, south of the Toachi Fault Zone | Test the magnetic anomaly |
| EPDD031 | **1,400m** | Northern side of deep T3 porphyry target | Test the T3 target |
| EPDD032 | **450m** | Strong magnetic high anomaly behind the southwestern wall of the modelled T1 pit | Assess potential for gold-copper mineralisation to extend beyond the current pit shell |
Put simply, two long holes probe the deep T3 body, while two shorter holes chase magnetic anomalies that could point to additional mineralised intrusions.
Why T3 matters
T3 is a 750m x 400m magnetic anomaly that straddles the NE-trending Toachi Fault Zone. It has been modelled over a vertical interval of approximately 1,300m, but likely extends below the base of the geophysical magnetic inversion model.
Two earlier Sunstone holes drilled in 2023 into the upper part of this body intersected porphyry gold-copper mineralisation over substantial intervals:
- EPDD026: 190m @ 0.40g/t Au, 0.11% Cu, 0.58g/t AuEq from 1,171m down-hole
- EPDD028: 251m @ 0.37g/t Au, 0.12% Cu, 0.56g/t AuEq from 936m down-hole
These are not new results. They are the evidence base that supports testing the northern and southwestern sides of T3 with the new deep holes.
Understanding porphyry exploration targets
A porphyry gold-copper system is a large body of rock where gold and copper are spread through veins and fractures around an intrusion. These systems tend to be large in volume but modest in grade, which is why the grades here sit below 1g/t.
The difference between a Resource and an Exploration Target is central to how you read this news:
- Mineral Resource: an estimate with sufficient drilling coverage to support classification. El Palmar’s is 1.2Moz AuEq.
- Exploration Target: a conceptual range of quantity and grade, with no assurance it will convert into a Resource.
That is why the T3 drilling matters. Until drilling confirms continuity, the deep targets remain targets.
The next major ASX story will hit our subscribers first
Toachi Fault district and Sunstone’s strategy
El Palmar and the nearby Verde Chico concessions sit adjacent to the Toachi Fault system in northern Ecuador. The system hosts the 3Bt Cascabel Copper Project (recently acquired by Jiangxi Copper for A$1.7bn) and the 1Bt Llurimagua Copper Project. This is neighbourhood context only, not a valuation read-across for Sunstone.
Work is also progressing on an updated Mineral Resource Estimate for the Bramaderos Gold-Copper Project in southern Ecuador, which is on track for delivery in the December Quarter. The existing Bramaderos estimate is 220Mt at 0.50g/t AuEq for 3.6Moz AuEq.
Sunstone also has an ongoing strategic process to determine a preferred long-term funding model. The announcement discloses no outcome.
What to watch:
- The second rig starting, scheduled in approximately one week.
- Drill results from EPDD029 to EPDD032, with no timing disclosed.
- The updated Bramaderos Mineral Resource Estimate in the December Quarter.
Don’t Miss the Next ASX Gold-Copper Breakout
Get FREE breaking ASX mining news delivered within minutes of release, with in-depth analysis already done. Join 30,000+ investors who stay ahead of the market. Click the “Free Alerts” button at Big News Blast to receive gold, copper and other resource alerts the moment news breaks.