Global copper demand is rising sharply, driven by the accelerating shift towards renewable energy, electric vehicles and energy storage systems. Studies predict a 70% increase in global copper demand by 2050, with annual growth potentially doubling to 1 million tonnes until 2035.
Source: Sprott
At the same time, gold prices remain elevated, driven by macroeconomic uncertainties and geopolitical tensions. As of mid-2025, gold prices have surged to record highs, reaching US$3,311 per ounce, driven by continued global financial instability, rising inflation concerns and persistent geopolitical tensions that fuel demand for safe-haven assets.
Source: Bloomberg
These dynamics create an attractive opportunity for mining companies to tap into high-value resources in one of the world’s richest mineral belts. Ecuador, home to one of the most endowed copper-gold belts globally, has become a key focus for global investors and drawn major players like BHP, Newmont, and Barrick. Recent mergers and acquisitions (M&A) — such as CMOC’s acquisition of Lumina Gold and Hancock’s US$120 million joint venture with ENAMI — further underscore the country’s rising importance in the resource sector.
For smaller players like Sunstone Metals Ltd (ASX:STM), Ecuador’s rich mineral wealth represents not just a compelling opportunity but a chance to become a significant player in the global gold and copper markets. With the Australian dollar gaining strength against the US dollar due to regional conflicts, trade restrictions, and shifts away from USD reliance, the ASX-listed Sunstone also enjoys a distinct advantage in its operations and potential returns.
With key projects such as El Palmar and Bramaderos and plans under way to add the nearby 3,672-hectare Verde Chico project, Sunstone is seeking to capitalise on the favourable market dynamics while strengthening its foothold in one of the world’s most promising copper-gold belts, with substantial room for growth and exploration.
The gold-copper boom in Ecuador’s prolific belt
Ecuador is quickly becoming one of Latin America's most attractive mining destinations, particularly for gold and copper, with its Andean setting hosting vast deposits of these critical metals. Lundin Gold’s Fruta del Norte deposit and the Chinese-owned Mirador mine are already world-class examples of the region’s potential, and with Sunstone’s projects in the same mineralised belt, the company is aiming to tap into this boom.
Ecuador’s geology is attracting increasing attention from major mining firms eager to secure new copper and gold sources. The country’s recent record of significant transactions, such as Solgold’s US$750 million financing for its Cascabel project, demonstrates growing investor confidence in the region.
While large mining companies are keen on Ecuador’s mineral wealth, junior players like Sunstone are also benefitting from exposure to the country’s favourable mineral endowment and supportive government stance on mining.
Ecuador’s cost structure is also competitive. Mining inputs such as energy and labour are significantly lower than in countries like Australia and Canada, providing a clear advantage to projects operating there. Moreover, more than 90% of Ecuador’s energy comes from hydroelectric sources, offering mining companies the possibility of running low-carbon operations.
This positions Sunstone’s Ecuadorean assets as not just economically viable but also environmentally sustainable, an increasingly important factor for companies looking to emerge in today’s mining industry. With a stable currency (USD) and a supportive government that actively encourages responsible mining, Ecuador offers a compelling environment for resource developers — and Sunstone sees its ability to execute its projects in this environment as giving it a strong competitive edge.
El Palmar: A century-scale asset in the making
Key to Sunstone’s growth strategy is the company’s flagship project El Palmar, in northern Ecuador’s Imbabura Province and part of the same geological belt as major deposits such as Alpala and Tandayama-America. With a maiden resource estimate of 1.2 million ounces of gold equivalent (AuEq) and an exploration target of 15 million to 45 million ounces of AuEq, the project offers compelling potential and scale.
El Palmar Project
The project’s mineralisation extends beyond 1,750 metres, opening the door for significant resource growth at what Sunstone sees as a potential multi-decade asset. With mining costs expected to be competitive due to Ecuador’s low energy and labour costs, the project offers an attractive development timeline and cost structure.
Given the region’s proven track record of world-class discoveries, including the 2.7-billion-tonne Alpala deposit, the company anticipates El Palmar could mirror the success of nearby projects. With an exploration target that far exceeds the maiden resource, Sunstone is focused on laying the groundwork for a major mining asset and decades of production.
Bramaderos project: High-grade gold-copper at surface
Sunstone’s Bramaderos project represents another high-potential asset, in the southern part of Ecuador. This project hosts a high-grade gold-copper-silver system that extends from surface, with a low-strip ratio and near-surface mineralisation that could lower development costs and provide early cash flow potential.
Read more: Sunstone Metals expands high-grade gold potential at Bramaderos
Bramaderos Gold and Copper Project
Recent drilling results have been highly encouraging, with intersections such as 185 metres at 2.85 g/t AuEq from a mineralised porphyry system extending over 1.6 kilometres in length. The project’s location at 900 metres above sea level also offers a logistical advantage, with easy access to roads, water and power.
Bramaderos: two areas of focus
Sunstone’s exploration strategy is designed to convert the exploration target into an increased resource estimate, which, if successful, would further enhance the project’s value and long-term growth potential.
Sunstone’s positioning in a rapidly changing market
Ecuador’s mining advantages, combined with the country’s rising profile in the global resource market, create an ideal backdrop for Sunstone’s growth. The company’s assets align well with global market shifts, particularly the rising demand for copper in the renewable energy and electric vehicle sectors. Meanwhile, high gold prices and the favourable AUD/USD exchange rate provide a hedge against economic uncertainty, giving Sunstone the chance to leverage both metals for long-term value.
Sunstone's portfolio is anchored by large, long-life assets with low all-in sustaining costs (AISC) in high-quality gold-copper projects — precisely the kind of Tier 1 opportunities that major miners are increasingly targeting. With a resource split of 25% copper and 75% gold, the company is strategically positioned in two of the most sought-after commodities globally.
The growing interest in Ecuador’s mining potential is driving ramped-up M&A activity, positioning Sunstone as an attractive player in the copper-gold belt. With a highly experienced team, a clear focus on resource growth, scalable development, and pathways for funding, Sunstone is prioritising value realisation and is well-placed to capitalise on strategic partnerships or organic growth to unlock the full potential of its projects.
Read more: Sunstone Metals advances partnership talks as sector M&A heats up
A rare opportunity
Sunstone Metals stands at the intersection of two booming markets: gold and copper. As global demand for both metals rises, the company’s projects in Ecuador offer a unique opportunity to capitalise on these trends, supported by the country’s rich mineral resources, low-cost operating environment and supportive mining policies.
By focusing on high-quality, scalable assets like El Palmar and Bramaderos, Sunstone is actively shaping its path to becoming a major force in the global mining sector. With its strategic landholdings, low-cost advantages and strong market positioning, the company is primed to unlock significant value and deliver sustained growth in one of the world’s most promising mining regions.