On 8 April 2019, Sunstone Metals Limited (ASX: STM) gave an update on its Bramaderos gold-copper project situated in South Ecuador. The environmental licence which permits the beginning of exploratory diamond drilling, has received approval from the Ministry of Environment (Ministerio del Ambiente), Ecuador.
STM is involved in the exploration work of mineral resources. The company’s Bramaderos Gold-Copper project (in a joint venture with Cornerstone Capital Resources) is situated in Ecuador and contains great potential for gold-copper resources. Its other project, the Southern Finland Gold Project holds a significant gold deposit. It also has a substantial equity investment in Copperstone Resources AB, Sweden. The company was earlier known as Avalon Minerals and is headquartered in Australia.
On 14 March 2019, the company had announced on ASX that along with its Joint Venture partner Cornerstone Capital Resources, it would mobilise a drill rig to the Bramaderos site, post it had obtained the approval of Environmental Impact Assessment (EIA). The company had also mentioned that the drilling work would begin at the Limon prospect.
In its previous announcements, the company has mentioned that the outcomes of the initial evaluation are anticipated between late May-early June 2019. The time frame is based on an expected period of two to three weeks to conclude the maiden drill hole, which has a depth of around 500m. It is further followed by one to two weeks, to conclude logging and sampling of the drill hole, with an expected turnaround period of around four weeks for sample preparation and evaluation outcomes.
The drilling work would begin, after a final drill pad and pumping systems preparation is done, at Limon prospect. This prospect has previously given 97.6m at 0.71g/t gold and 0.23% copper (as announced on ASX on 29 May 2018).
The first drill program is expected to be around 5,000m. The drill program would also comprise of holes at Bramaderos Main, which has previously been intersected 248m at 0.56g/t gold and 0.14% copper, as well as recent surface digging that delivered 615m at 0.52g/t gold and 0.11% copper (as announced on 9 May 2018). The drill program would also take place at Western Zone, where surface digging has given 15.6m at 6.1g/t gold (as announced on ASX on 8 November 2017).
Further, the company has announced that it had issued fully paid 6,000,000 ordinary shares on 8 April 2019, upon vesting of performance rights under the Company’s Employee Performance Rights Plan, related to achieving Share Price hurdles.
In its half-year report for the period ending on 31 December 2018, the company recorded Net loss for the period standing at $4.79 million from $0.85 million in the previous corresponding period. The total assets of the company stood at $47.1 million, and total equity stood around $46.7 million. The cash balance of the company on 31 December 2018 was recorded at around $2.56 million.
By the closure of the trading session, the stock of the company was at a price of A$0.045 (as on 8 April 2019), up by 4.651% from its previous day’s closing price. The company has a market capitalization of around A$52.24 million, with 1.21 billion shares outstanding. The stock of the company has been consistently doing well and has given a yield of 26.47% in the last six months. Its YTD stands at 79.17%.
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