Sunshine Gold : Excellent Recoveries from Metallurgical Test Work at Titov

EXCELLENT RECOVERIES FROM METALLURGICAL TEST WORK AT RAVENSWOOD WEST

Sunshine Gold Limited (ASX:SHN, "Sunshine Gold", "the Company") is pleased to announce the results of preliminary metallurgical test work from Titov Cu-Au-Ag-Mo target, Ravenswood West.

HIGHLIGHTS

• • Test work was conducted on a single composite sample sourced from two completed RC holes (21TVRC001 and 21TVRC004). Optimum settings resulted in a peak molybdenum recovery of 91.7% and a copper recovery of 76.5%. Preliminary cleaner flotation test work further reduced the mass pull and returned concentrate grades to 56.8% Mo.

Figure 1. Rougher flotation test work.

Sunshine Gold's Managing Director, Damien Keys commented: "Preliminary metallurgical test work demonstrates excellent recoveries of molybdenum and copper.

The success of this work also allows us to simplify the communication of drilling results to investors. Accordingly, future results will be released on a copper equivalent basis. Due to the similarities in mineralisation style, assay results from the Keans Cu-Au-Ag-Mo target (15km south of Titov) will also be released on a copper equivalent basis. The Keans RC drilling completed in October 2021 was extremely encouraging and follow up work is planned for the broader area.

The emergence of high-grade footwall and hanging wall mineralisation on the eastern end of Titov Main, in conjunction with the strengthening IP anomalism, bodes well for next drilling due to commence in May 2022. The drilling will focus on extensions to the Titov Main system and first tests of Titov South and Titov North. Geophysical crews are due to recommence work on Gagarin and Wilbur's Hill in coming weeks as we look to confirm drill ready targets."

SUNSHINE GOLD LIMITED (ASX:SHN)

Directors:	Queensland Office:	Contact:	Capital:
Mr Alec Pismiris	1/23 Mackley Street	T [phone]	Ordinary shares: 467,822,730
Dr Damien Keys	Garbutt QLD 4814	E [e-mail]	Unquoted shares: 151,900,000 (24m Esc)
Mr Anthony Torresan	Wwww.shngold.com.au	Deferred shares: 50,000,000 (24m Esc)
Mr Paul Chapman	ABN 12 063 388 821	Unlisted options: 65,000,000 (24m Esc)
Mr Les Davis	Unlisted plan options: 2,700,000
Perf Rights: 8,500,000 (24m Esc)

FIRST STAGE METALLURGICAL PROGRAM, TITOV

A single composite sample was sourced from RC drilling completed at Titov. (Refer to ASX releases dated 19 October and 6 December 2021).

The study, completed by ALS, sought to determine copper, gold, silver and molybdenum recoveries via rougher flotation. Optical mineralogy results indicated that molybdenite and chalcopyrite are very well liberated in all fractions.

Four rougher tests were conducted to understand recoveries, using different grind and reagent settings and introducing pre-floats. The sample submitted contained a low gold content. Effective gold recoveries will be determined from samples taken from the areas of Titov with higher gold grades such as expected in the Eastern zones.

The optimal test of the six conducted saw feed pass through a pre-float cell to produce a concentrate, with the remaining feed passing to a series of three rougher floatation cells. The process essentially forms two separate concentrates. A low mass pull in the pre-float (6.4%) recovers 85% of the molybdenum and 47.2% of the total copper. The remaining feed passes through a series of three rougher cells where a further 6.7% of the molybdenum and 28.5% of the copper is extracted, resulting in total recoveries of 91.7% for Mo and 76.5% for Cu. The process extracts 66.3% of the silver.

Preliminary test work utilising cleaner flotation (optimised for molybdenum concentrate grade) lowered the mass pull to 0.6% and produced final concentrates grading up to 56.8% Mo. It is anticipated that similar test work optimised for both copper and molybdenum will improve the grade of copper concentrates.

Further metallurgical studies will be completed as drilling progresses through targets along the 15km long Cu-Au-Ag-Mo corridor.

Sample Head Grade
Composite	Cu %	Mo %	Ag %	Au %
Titov	0.37	0.54	2.67	*

Table 1. Composite sample head grade.

Recoveries
Test	Mass Pull (%)	Cu %	Mo %	Ag %	Au %
Pre-Float	6.4	47.2	85.0	38.3	*
Rougher 1-3	3.5	28.5	6.7	28.0	*
TOTAL	9.9	75.7	91.7	58.3	*
Tail	90.1	24.3	8.3	33.7	*

Table 2. Results from optimal flotation test at Titov. Asterisk denotes below detection gold.

TITOV DRILLING

Sunshine Gold drilled 8 RC holes at Titov in September 2021. The holes contained disseminated Mo, Cu and Ag. A composite sample was collected for metallurgical test work from the mineralised portions of 21TVRC001 and 21TVRC004. Sunshine Gold diamond core hole 21TVDD001 was completed at 501.5m depth in December 2021. The hole was collared 430m SSE of the outcropping mineralisation at Titov Main and identified additional Cu-bearing zones in the upper levels (Titov South) which contain elevated Mo, Ag and, notably, Au.

Titov Main is now defined over 350m of strike, to depths of 350m and at an average true thickness of 65m.

Assay results from Titov can now be released as a recoverable copper equivalent (CuEq). Best copper equivalent results from Titov include:

• • 21TVRC004 66m @ 2.10 % CuEq from 26m

  Including 6m @ 13.35 % CuEq from 70m

• • 21TVRC008 112m @ 0.70 % CuEq from surface

  Including 17m @ 1.36 % CuEq from 50m

• • 21TVRC007 158m @ 0.61 % CuEq from surface

  Including 17m @ 1.16 % CuEq from 128m

• • 21TVRC006 10m @ 1.09 % CuEq from 115m

Figure 2. Aerial view looking east of Titov drilling and results in copper equivalents.

In February 2022, the drill core from the 1969 diamond core drilling program at Titov was reviewed. Drill hole DDH5 is located ~85m northeast along strike from Sunshine Gold's easternmost RC drill holes 21TVRC007 & 21TVRC008. Hole DDH5 reported a historic intersection of 112m @ 0.67% CuEq (0.35% Cu and 0.09% Mo), however no assays were taken for Ag and Au amongst others. Select intervals were assayed by Sunshine Gold which confirmed the Cu and Mo tenor, and notably returned elevated Au grades.

DDH5 also contained higher grade mineralisation on the footwall and hanging wall contacts of the Titov Main mineralisation. The higher-grade margins are observed in 21TVRC006, 21TVRC007 and 21TVRC008 and consistently grade > 1% CuEq (and > 0.6% Cu) over 10 - 17m downhole. The eastern end of Titov Main is also coincident with the strongest chargeability response from the recent IP survey (refer ASX release 11th April 2022).

ASX Announcement

2 May 2022

Hole ID	M (from)	M (to)	Interval (m)	Cu %	Mo %	Au g/t	Ag g/t	Cu Eq %
DDH5	0.0	110.9	110.9	0.35	0.09	0.66
including	40.0	46.0	6.0	0.67	0.18	0.08	2.80	1.33
including	94.0	96.0	2.0	1.52	1.12	0.14	6.30	6.06
including	97.0	101.0	4.0	1.55	0.18	0.09	8.28	2.02
including	110.0	112.0	2.0	0.83	0.37	0.13	3.70	2.29
DDH10	6.1	103.4	97.3	0.41	0.10	0.74
21TVRC001	1.0	122.0	121.0	0.35	0.11	0.00	1.99	0.75
21TVRC004	26.0	92.0	66.0	0.38	0.42	0.00	2.22	2.10
including	70.0	76.0	6.0	0.42	3.02	0.01	3.94	13.36
21TVRC005	38.0	84.0	46.0	0.23	0.08	0.01	1.34	0.55
including	57.0	71.0	14.0	0.43	0.23	0.01	2.79	1.33
21TVRC006	115.0	125.0	10.0	1.32	0.02	0.04	2.11	1.08
including	123.0	125.0	2.0	5.93	0.01	0.13	6.87	4.61
21TVRC007	0.0	158.0	158.0	0.37	0.07	0.00	2.25	0.61
including	38.0	56.0	18.0	0.50	0.12	0.00	2.89	0.91
including	128.0	145.0	17.0	0.65	0.17	0.01	4.00	1.25
21TVRC008	0.0	112.0	112.0	0.44	0.08	0.01	2.48	0.70
including	0.0	15.0	15.0	0.62	0.02	0.00	2.38	0.57
including	50.0	67.0	17.0	0.58	0.21	0.00	3.34	1.36
21TVDD001	69.0	73.0	4.0	1.31	0.00	0.17	13.3	1.11
including	69.0	72.0	3.0	1.69	0.00	0.22	17.3	1.43
21TVDD001	89.0	90.0	1.0	0.89	0.06	0.21	9.50	1.05
21TVDD001	134.0	139.0	5.0	0.70	0.01	0.03	6.30	0.61
including	134.0	135.0	1.0	2.95	0.04	0.08	26.6	2.55
21TVDD001	149.0	151.0	2.0	0.99	0.49	0.08	3.60	2.91
including	149.0	150.0	1.0	1.69	0.68	0.13	4.60	4.28
21TVDD001	172.0	173.0	1.0	0.75	0.03	0.04	2.00	0.72
21TVDD001	194.0	196.0	2.0	0.90	0.02	0.09	4.80	0.82
21TVDD001	347.0	348.0	1.0	0.93	0.04	0.01	4.60	0.90

Hole ID	HG Zone	From	To	Width	Cu %	Mo %	Ag g/t	Au g/t	CuEq %
21TVRC006	FW	115	125	10	1.32%	0.02%	2.11	0.04	1.09
including	FW	123	125	2	5.93%	0.00%	6.87	0.13	4.61
21TVRC007	0	158	158	0.37%	0.07%	2.25	0.00	0.61
including	HW	38	56	18	0.50%	0.12%	2.89	0.00	0.91
and	FW	128	145	17	0.65%	0.17%	4.00	0.01	1.25
21TVRC008	0	112	112	0.44%	0.08%	2.48	0.01	0.70
including	HW	0	15	15	0.62%	0.02%	2.38	0.00	0.57
and	FW	50	67	17	0.58%	0.21%	3.34	0.00	1.36
DDH5	0	112	112	* 0.35%	* 0.09%	* ?	0.00	0.67
including	HW	40	46	6	0.67%	0.18%	2.80	0.08	1.33
And	FW	94	96	2	1.52%	1.12%	6.30	0.14	6.06
And	FW	97	101	4	1.55%	0.18%	8.28	0.09	2.02
And	FW	110	112	2	0.83%	0.37%	3.70	0.13	2.29

Table 3. Results from Sunshine Gold RC drilling and resampling of historic diamond hole DDH5.

Results from all drilling to date at Titov now converted to a CuEq result can be found in Appendix 1. Significant results > 0.60% CuEq from Titov drilling are listed in Table 4.

Table 4. Significant results > 0.60% CuEq from Titov drilling.

KEANS DRILLING

A 15 hole (1,830m) reconnaissance program was completed at the Keans during October 2021. The program tested a suite of outcropping quartz-sulphide veins and geophysical targets. The drilling intersected discrete veins with chlorite-sericite alteration haloes. The veins contained abundant sulphide, particularly in holes drilled near the historic gold mines (Shaft A and Heuirs Shaft). The style of the mineralisation, nature of the alteration and relative abundances of associated metals is very similar to that at Titov. As such, metallurgical test work from Titov is regarded as an appropriate proxy for likely Keans metallurgical recovery. Best copper equivalent results from Keans include:

• • 21KNRC004 12m @ 1.34 % CuEq from 81m

  Including 5m @ 2.66 % CuEq from 87m

• • 21KNRC003 21m @ 0.84 % CuEq from 16m Including 2m @ 5.27 % CuEq from 35m

• • 21KNRC006 6m @ 1.48 % CuEq from 51m Including 2m @ 3.79 % CuEq from 55m

Figure 3. Keans drilling and results in copper equivalents.

Results from all drilling to date at Keans now converted to a CuEq result can be found in Appendix 2.

Significant results > 0.60% CuEq from Keans drilling are listed in Table 5.

Hole ID	From	To	Interval (m)	Cu %	Mo %	Au	Ag	Cu Eq %
21KNRC002	33.0	35.0	2.0	0.56	0.03	0.33	17.65	0.77
21KNRC003	16.0	37.0	21.0	0.37	0.13	0.04	1.53	0.86
including	27.0	28.0	1.0	0.19	0.11	0.02	2.48	0.66
and	35.0	37.0	2.0	0.57	1.11	0.07	2.58	5.26
21KNRC003	43.0	45.0	2.0	0.94	0.04	0.04	4.60	0.97
21KNRC004	81.0	93.0	12.0	1.43	0.03	0.05	33.07	1.41
including	81.0	83.0	2.0	1.10	0.02	0.05	7.65	1.00