Sunstone Metals Ltd (ASX:STM) has received a ‘speculative buy’ recommendation from Taylor Collison, after a potential ‘game-changing’ epithermal intersection at the Bramaderos Porphyry Copper-Gold Project in southern Ecuador.
The company delivered a high/intermediate sulphidation epithermal gold intersection in hole LMDD017 of 176.7 metres at 0.97 g/t gold, 10 g/t silver and 0.2% zinc from the Limon prospect, one of the priority targets at Bramaderos.
Sunstone’s shares are currently trading at $0.031 with a market cap of $89.36 million.
Key points
Key points from the Taylor Collinson research report include:
- Quality assets in a highly prospective region: Ongoing work has demonstrated the potential to continue to deliver positive results, with the projects located within the highly productive cordillera of western South America, the world’s largest copper-producing region.
- A solid base to build upon: The MRE and exploration target at Bramaderos forms a solid base for the company to build upon, with the MRE limited to just two of the many prospects at the project.
- Personnel with the right experience: The key personnel in Sunstone have extensive successful and applicable experience, including being involved in the Tujuh Bukit (Indonesia) and Cascabel (Ecuador) porphyry discoveries – this experience is now being applied successfully to Sunstone’s projects.
- Well served by infrastructure: All projects are in areas of good transport and utility infrastructure and are located at relatively low RLs (up to 1,500 metres) and manageable topography in the Cordillera Occidental of Ecuador – the tenements cover a mixture of farming and wooded land, with the company having good relationships with locals.
- Ongoing news flow: Ongoing activities should produce steady and positive newsflow.