Sunstone Metals Ltd (ASX:STM) kept busy with strategic talks in the June quarter as interest heats up in the gold and copper space. The company has been in discussions with several parties over potential deals — including corporate transactions and farm-out agreements — and hosted a series of site visits in June and July to move things forward.
At the same time, ongoing exploration work at its Bramaderos and El Palmar projects in Ecuador is highlighting the size and quality of the assets, making them all the more attractive to potential partners.
Bramaderos: Additional mineralised corridors and new trenching results
At the Bramaderos Gold and Copper Project in southern Ecuador, Sunstone reported further epithermal gold-silver mineralisation from surface sampling, with assays returning up to 14.4 grams per tonne (g/t) gold. These new results indicate the presence of multiple high-grade epithermal corridors extending from the Brama-Alba porphyry deposit.
Bramaderos hosts a Mineral Resource Estimate (MRE) of 2.7 million ounces (Moz) gold equivalent (AuEq), supported by a porphyry Exploration Target ranging between 3.3 Moz and 8.6 Moz AuEq. In addition, the nearby Limon epithermal deposit presents an Exploration Target of 0.9–1.7 Moz AuEq, which could support a standalone open-pit operation.
Trenching at the Copete target confirmed significant porphyry gold-copper mineralisation, extending the mineralised surface footprint to 2 kilometres by 1.8 kilometres, reinforcing the potential for a large-scale, open-pit development.
El Palmar: Maiden MRE and large-scale exploration target
At the El Palmar Gold and Copper Project in northern Ecuador, Sunstone delivered a maiden MRE of 1.2 Moz AuEq from the T1 outcropping porphyry target. T1 is considered to be the first of several porphyry systems identified at the project.
A substantial Exploration Target has been established at El Palmar, estimated between 15 Moz and 45 Moz AuEq within 1.0 to 1.2 billion tonnes of mineralised material grading between 0.3 g/t to 0.7 g/t gold and 0.1% to 0.3% copper. This equates to an estimated 10 Moz to 27 Moz of contained gold and 1.0 to 3.7 million tonnes (Mt) of copper.
Corporate update: Strong cash balance and option conversions
As at June 30, 2025, Sunstone held A$2.7 million in cash. The company completed a A$4 million capital raising in March, with the remaining A$3 million received in early April. An additional A$1 million was raised during the quarter through option exercises at A$0.0075 per share.
Post-quarter-end, a further 85 million options were converted to shares, generating an additional A$0.6 million. A total of 425 million in-the-money options remain, potentially contributing a further A$3.2 million in funding.
Next steps in partnership negotiations
Sunstone has attracted interest from both mining and investment groups and continues to facilitate access to its data room and site visits. Discussions now range from corporate-level transactions to project joint ventures or potential combinations with near-development assets.
One advanced opportunity is nearing offer stage, though the company has cautioned there is no guarantee of a finalised or acceptable agreement. All discussions remain subject to confidentiality agreements, and Sunstone will update the market in line with its continuous disclosure obligations.