An updated mining study has improved the economics for an initial open-pit and underground mine at Liontown in North Queensland as Sunshine Metals drives towards start-up.

Mining and environmental approvals are well advanced, with early contractor engagement underway to support a mid-2027 start to production, according to Sunshine.

The updated Liontown mining study outlines a production target of about 80,000oz gold and 952,000oz silver based on a multi-staged open pit and underground operation.

Financials include:

• Gross revenue of about $497.5 million
• Net operating cashflow (after all capital) of about $179.8 million
• Maximum cash drawdown of about $5.5 million for initial funding requirements
• Life of mine capital costs of $56 million
• All-in sustaining cost (AISC) of $2,579/oz gold

“This updated Liontown mining study is another positive step forward for Sunshine in our transition to a sustainable gold and base metals producer and self-funded explorer,” Sunshine Metals (ASX:SHN) managing director Dr Damien Keys said.

“Based on our updated July 2026 mineral resource estimate, the study delivers even stronger economics, modest capital requirements and potential for early cashflow generation.

“Our recent acquisition of the Mount Moss mill and rapid development progress underpin our goal to be a long-term player in the district, on track for first gold in mid-2027.”

Related: Sunshine cracks on with Mount Moss revamp

Tenders will be sought for contract open-pit mining and haulage in late 2026.

Liontown, located 40km south-west of Charters Towers, hosts a total mineral resource of 7.3 Mt at 1.4g/t gold, 25g/t silver, 0.7 per cent copper, 3.9 per cent zinc and 1.4 per cent lead.

Sunshine’s mining study focuses on gold-only and gold-dominant mineralisation.

The company said it was based on extracting about 14 per cent of the total Liontown resource, with the operation set to provide valuable long-term infrastructure for the potential mining of the remaining precious metals, copper, zinc and lead resource.

The Liontown operation coverd by the mining study would run for about five years. Sunshine aims to fill the production profile at Mount Moss after three years from discovery success (Liontown extensions, Sybil, Plateau, Mount Moss) or treatment of third-party ores.

Several identified opportunities may improve the projected economic outcomes at Liontown, including:

• Further optimisation of underground extraction including sub-level interval increase
• Recovery of historic mined voids intersected in shallow RC drilling. (The mining study assigns no grade to the void rock fill although assays have returned high-grade gold and silver results)
• Infill and extensional drilling of the Gap Zone about 200m east of the Au Panel
• Utilisation of the underground mine as a drill platform for further discovery, extensional and infill drilling.
• Mining of defined pods of gold in the vicinity of the decline linking the proposed open pit to the Au Panel.
• Extraction of mineralisation beneath the open pit from a small underground mine. This is likely to be in conjunction with potential preparation of base metal infrastructure.
• Evaluating the remaining precious and base metals resource to optimise the immediate and/or longer-term value.
• Resource extension upside in all extents for the remaining precious and base metals resource.