Sunstone Metals Ltd (ASX:STM) continues to expand its area of known mineralisation at the El Palmar gold-copper discovery in northern Ecuador after strong results have confirmed higher-grade copper and gold zones.
The latest results from five holes include:
- 153.4 metres at 0.47 g/t gold and 0.10% copper from surface, including 33 metres at 0.92 g/t gold and 0.16% copper from 88 metres;
- 69 metres at 0.39 g/t gold and 0.23% copper from 29 metres; and
- 104.6 metres at 0.45 g/t gold and 0.15% copper from 15 metres, including 49.8 metres at 0.67 g/t gold and 0.12% copper from 24 metres.
These results demonstrate that El Palmar has substantial scale and grades in line with those seen in many of the world’s high-profile porphyry deposits, including those nearby such as Alpala and Tandayama-American.
Looking ahead, Sunstone’s cash and equity investments remain strong at A$26 million, allowing expanded exploration activities at both El Palmar and Bramaderos projects.
“Very valuable project”
Sunstone managing director Malcolm Norris said “We are expanding the size of El Palmar, and therefore its value, with virtually every hole.
“There is also growing evidence of higher-grade copper domains with >0.2% copper and gold in excess of 0.35 g/t.
“This should deliver a highly attractive gold-equivalent result once we have metallurgical results in hand.
“The combination of the scale and the grades we are generating at El Palmar shows that this is clearly becoming a very valuable project in a world which desperately needs more large discoveries.
“Sunstone has two such discoveries and I have no doubt that this will be increasingly recognised by the market, particularly as we move towards a maiden JORC mineral resource estimate at Bramaderos, and advancing our definition of the El Palmar ore body, over coming months.”
Drill results
Drilling is defining higher copper grade domains at greater than 0.2% copper and 0.35 g/t gold.
In hole EPDD019, native copper has been identified locally with chalcopyrite and bornite.
Meanwhile, in hole EPDD020, copper mineralisation has been identified at depth and further north associated with local strong sheeted quartz veining.
Forward plan
Geological modelling of the El Palmar system is suggesting a steep northerly plunge to the group of intrusives that host, and are coeval with, the gold-copper mineralisation.
Soil sampling is also rapidly progressing and providing definition to additional targets within the concession in preparation for drill testing.
Interpretation of the Spartan magnetotelluric (MT) survey data is ongoing and is being integrated with magnetic models.
It is expected that an Orion 3D-DCIP survey will also be completed at El Palmar during 2022 to deliver high-confidence deep drill targets.
Meanwhile, at the Bramaderos Project in southern Ecuador, more assays and initial metallurgical results are expected within a fortnight.