Sunstone Metals

MALCOLM NORRIS

MANAGING DIRECTOR

(ASX:STM)

◾ Company Name: Sunstone Metals ◾ Company ASX code: STM ◾ Key Commodities: Gold, copper ◾ Key Personnel: Malcolm Norris, Managing Director | Dr Bruce Rohrlach, General Manager Geology | Ray Robinson, General Manager, Studies and Technical Services ◾ Locations: Ecuador ◾ Market Cap as of 15/08/22: $129.82M ◾ FY22 Share price range – Low/High: $0.019 / $0.123 ◾ Company Website: sunstonemetals.com.au

COMPANY PROFILE

Sunstone Metals is an ASX listed explorer with two very high-quality gold and copper discoveries in Ecuador – Bramaderos and El Palmar, which experienced analysts say could host up to a combined 15Moz of gold equivalent.

Located in southern Ecuador, Bramaderos is approximately 69km west-southwest of the provincial capital city of Loja, 213km south-southeast of the coastal city of Guayaquil and 460km south-southwest of Quito.

Bramaderos is an incorporated joint venture between Sunstone and TSX:V listed Cornerstone Capital Resources (TSX.V:CGP), with Sunstone holding 87.5% of La Plata Minerales, which currently holds the Bramaderos concession.

The Bramaderos project is highly prospective for porphyry and epithermal gold-copper deposits, with recent drill results from the Alba discovery demonstrating that it’s an outstanding gold-copper porphyry discovery with scale.

Porphyries are multigenerational monsters responsible for ~60 percent of the world’s copper, most of its molybdenum, and significant amounts of gold and silver.

Alba, one of a cluster of systems currently being drill-tested at Bramaderos, presents as a rich goldcopper porphyry deposit with significant vertical extent and an upper gold zone locally containing visible gold.

Assay results announced in July 2022 returned a highlight 401.2m at 0.58g/t AuEq (0.41g/t gold and 0.1% copper), from 31.5m in BMDD019, including 50.0m at 1.01g/t AuEq (0.83g/t gold, 0.10% copper), from 102m.

Another highlight results were 66.0m at 0.62 AuEq (0.45g/t gold and 0.09% copper), from 254m in BMDD027, and 72.0m at 0.55g/t AuEq (0.30g/t gold and 0.14% copper), from 452m in BMDD028.

In northern Ecuador, the El Palmar copper-gold project is the subject of a Staged Acquisition Agreement with Ecuadorian company Golden Exploration Ecuador (‘GOEX’), and is also considered to be highly prospective for the discovery of copper-gold porphyry deposits.

Recent exploration at the site shows that overall grades are consistently in line with large porphyry projects, with results such as 153.4m at 0.47g/t gold and 0.10% copper from surface in EPDD012 including 33m at 0.92g/t gold and 0.16% copper from 88m and 104.6m at 0.45g/t gold and 0.15% copper from 15m in EPDD014 including 49.8m at 0.67g/t gold and 0.12% copper from 24m.

El Palmar is in the same regional structural belt that hosts the 2.66Bt Alpala copper-gold deposit grading 0.25g/t gold and 0.37% copper, and the 0.53Bt Tandayama-America deposit grading 0.19g/t gold and 0.24% copper, nearby the 1Bt Llurimagua coppermolybdenum porphyry deposit grading 0.89% copper and 0.04% molybdenum.

Writing about El Palmar, Morgans analyst Chris Brown says “drilling continues to substantiate the shallow – within 500m of the surface – El Palmar gold-copper mineralisation”.

“The exploration target for this shallow mineralisation is 2-5Moz ounces of gold in this shallow section of the deposit,” Brown says.

Sunstone is led by a well-credentialed and highly experienced team that have worked around the globe on significant discoveries of porphyry and epithermal copper-gold mineralisation at Tujuh Bukit in Indonesia.

In April 2022, Sunstone introduced institutional funding to the register, with a $24 million placement ($20m) and share purchase plan ($4m), to fund exploration at its projects in northern and southern Ecuador.

KEY INVESTMENT HIGHLIGHTS

JULY 19, 2022: Brama-Alba porphyry discovery expanded to 1.2km by 500m to >400m deep and open, following assay results showing wide intersections up to 1g/t gold equivalent. JUNE 29, 2022: Strong assays expand known mineralisation and confirm highergrade gold & copper zones at El Palmar. APRIL 12, 2022: Brama–Alba porphyry system now expanded to 1.1km long, 400m wide and open.