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.
Read: Sunstone Metals lauds Bramaderos’ multi-deposit potential with high-grade gold and silver discovery at Liom
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 (NYSE:OXY) 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.