Sunshine Gold : Assays Confirm Large Cu-Ag-Mo System at Titov Updated

ASX Announcement

6 December 2021

ASSAYS CONFIRM LARGE CU-AG-MO SYSTEM AT TITOV

Sunshine Gold Limited (ASX:SHN, "Sunshine Gold", "the Company") is pleased to announce the assay results of RC drilling and an update on the deep diamond drill hole at Titov Cu-Ag-Mo prospect ("Titov"), Ravenswood West.

HIGHLIGHTS

• Assays have now been returned for the remaining 6 RC holes drilled at Titov. Assays confirm a large Cu-Au-Ag-Mo

system with zones of high-grade copper and molybdenum present. Best results include:
only	o	21TVRC006	10m	@ 1.32 % Cu, 2.11 g/t Ag, from 115m
use		Including	2m @ 5.93 % Cu, 0.13 g/t Au, 6.87 g/t Ag, from 123m
o	21TVRC007	158m @ 0.37 % Cu, 0.07 % Mo, 2.25 g/t Ag, from surface
	Including	18m	@ 0.50 % Cu, 0.12 % Mo, 2.89 g/t Ag, from 38m
o	And	17m	@ 0.65 % Cu, 0.15 % Mo, 4.00 g/t Ag, from 128m
	21TVRC008	112m @ 0.44 % Cu, 0.08 % Mo, 2.48 g/t Ag, from surface
		Including	15m	@ 0.62 % Cu, 0.02 % Mo, 2.38 g/t Ag, from surface
personalFor		And	17m	@ 0.58 % Cu, 0.21 % Mo, 3.34 g/t Ag, from 50m
o	21TVRC004	66m	@ 0.38 % Cu, 0.42 % Mo, 2.22 g/t Ag, from 26m
	Including	6m @ 0.42 % Cu, 3.02 % Mo, 3.94 g/t Ag, from 70m
• Previously announced results included:
	o	21TVRC001	121m @ 0.35 % Cu, 0.11 % Mo, 1.99 g/t Ag, from 1m

• Commencement of first diamond drilling at Titov target in over 50 years. One 500m diamond hole is expected to intersect the target zone at approximately 350m depth. The diamond hole (21TVDD001) is currently at 270m and has intersected zones of pervasive potassic alteration containing disseminated chalcopyrite and quartz veins containing both chalcopyrite and molybdenite.

Figure 1. Chalcopyrite in altered and brecciated granite 21TVDD001 (89.5m).

SUNSHINE GOLD LIMITED (ASX:SHN)

Directors:	Postal Address:	Contact:	Capital:
Mr Alec Pismiris	PO Box 572	T [phone]	Ordinary shares: 467,822,730
Dr Damien Keys	Floreat WA 6014	E [e-mail]	Unquoted shares: 88,000,000 (24m Esc)
Mr Anthony Torresan	Queensland Office:	Wwww.shngold.com.au	Deferred shares: 100,000,000 (24m Esc)
Mr Paul Chapman	3/50 Tully Street	ABN 12 063 388 821	Unlisted options:71,000,000 (24m Esc)
Mr Les Davis	South Townsville QLD 4810		Unlisted plan options: 2,000,000
			Perf Rights: 17,000,000 (24m Esc)

Figure 2. Map of the >15km long Cu-Au-Ag-Mocorridor at Ravenswood West.

ASX Announcement

6 December 2021

Sunshine Gold's Managing Director, Damien Keys commented: "The RC drilling has provided valuable geological and geochemical information at Titov. We are especially enthused by the zones of high-grade copper (to 5.93%) and onlymolybdenum (to 3.02%) within the broader mineralised envelope. In particular, copper appears to be increasing in

grade to the east of the drilled area and at depth (21TVRC006).

The diamond hole is testing changes in metal zonation, extensions to high-grade zones and an IP chargeability co ductor at depth. The core is already looking encouraging with zones of pervasive potassic alteration with disseminated chalcopyrite and quartz veins containing both chalcopyrite and molybdenite. We are still 80m from the anticipated target zone and looking forward to seeing the next 230m of core."

usepersonal

ForTITOV RC DRILL PROGRAM (Sunshine Gold 100%)

Titov is a swarm of Mo-bearing quartz veins hosted within a malachite (Cu carbonate) stained granodiorite. The prospect is located on a hill and is a devoid of trees, owing to the elevated Cu in soils. A shaft and series of shallow workings are spread across the 300m x 120m surface anomaly.

Sunshine Gold completed RC drilling (8 holes, 1550m) at Titov in September 2021. The program's objectives were to:

• Confirm large thickness intervals of Cu and Mo;
• Define zones of high-grade mineralisation within the broader mineralised envelope;
• Assess potential for Au-Ag mineralisation within the Cu-Mo; and
• Test the nature of the emerging IP chargeability anomaly at depth with downhole geophysics on the deepest drilling.

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ASX Announcement

6 December 2021

The RC drilling program provided geological and geochemical information over 200m of strike extent. The drilling

onlycopper interval, 10m @ 1.32% Cu, 0.02% Mo and 2.11g/t Ag, was intersected in the deepest RC hole of the program. Diamond drill hole, 21TVDD001, is interpreted to intersect the Titov lode 230m down dip of this intersection.

program intersected broad zones of copper, molybdenum and silver mineralisation in all drill holes (see Table 1). The

thickest intersections (estimated 100m true thickness) coincide with the some of the highest copper grades in the

easternmost holes drilled by Sunshine Gold; 21TVRC007 and 21TVRC008 (Figure 4). However the highest grade

The highest molybdenum grade interval intersected was 6m @ 3.02% Mo, 0.42% Cu and 3.94g/t Ag (21TVRC004, 70m).

A detailed review of the multi-element geochemistry is planned following the completion of the deep diamond drill hole. This information will be important in determining mineral zonation and vectoring toward higher grade Cu-Mo

and/or Au bearing mineralisation. The diamond hole will add further information regarding the metal zonation at
depth. To date, broad relationships observed include;
use	More elevated Mo in the western end of the Titov lode grading to moderate Mo grades in the east.
•

personal	•	Most elevated Cu grades and thickness of intercept in the eastern end of the tested Titov lode system,
	grading to moderate grades and thinner widths in the west.
•	Increasing Cu grades at depth

A >10ppb gold in soil anomaly is present to the east of the station track at Titov (Figure 3). The elevated Cu grades a d increased thickness of lode on the east of the RC program, coupled with the soil gold anomalism present an

bvious follow up drilling opportunity for testing in 2022.
	Hole ID	From	To	Width	Cu_%	Mo_%	Ag_ppm
	21TVRC001	1	122	121	0.35%	0.11%	1.99
	21TVRC002	0	91	91	0.25%	0.06%	1.37
	21TVRC003	87	173	86	0.27%	0.02%	1.28
	21TVRC004	26	92	66	0.38%	0.42%	2.22
	including	70	76	6	0.42%	3.02%	3.94
For	21TVRC005	38	84	46	0.23%	0.08%	1.34
21TVRC005	166	187	21	0.31%	0.02%	1.50
21TVRC006	115	125	10	1.32%	0.02%	2.11
including	123	125	2	5.93%	0.13%	6.87
21TVRC007	0	158	158	0.37%	0.07%	2.25
including	38	56	18	0.50%	0.12%	2.89
including	128	145	17	0.65%	0.15%	4.00
	21TVRC008	0	112	112	0.44%	0.08%	2.48
	including	0	15	15	0.62%	0.02%	2.38
	including	50	67	17	0.58%	0.21%	3.34

Table 1. Significant intersections from Sunshine Gold RC drilling at Titov Cu-Ag-Mo, Ravenswood West.

(LME Copper Price : US$9,500/t, Molybdenum Price : US$44,750)

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ASX Announcement

6 December 2021

For personal use only

Figure 3. Collar positions and interpreted lode at surface, Titov.

Figure 4. Cross Section displaying eastern RC holes and current diamond hole, Titov.

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ASX Announcement

6 December 2021

TITOV DIAMOND DRILL HOLE (Sunshine Gold 100%)

onlyDiamond drilling commenced at Titov on 1 December 2021. The rig has completed 270m (4 December 2021) of a planned 500m. The drill hole is planned to test:

• Test the down dip extension to the Titov Cu-Ag-Mo system;

• Determine vein orientations, confirm broad envelope orientation and refine the geological model;

• Assess metal (-geochemical) zonation at depth, that may assist future vectoring toward higher-grade mineralisation; and

• Determine the nature of a deep Pole-Dipole IP Chargeability anomaly.

usepersonalFigure 5. Oblique view of the Titov interpreted lode (looking NNW) displaying deep diamond hole and IP Chargeability draped over wireframe.

ForEncouragingly the drilling has already intersected a series of chalcopyrite (copper) and molybdenite (molybdenum) bearing quartz veins. The mineralised veins commonly have a potassic selvedge and vary in width from 1cm to 20cm thick. Both vein thickness and degree of potassic alteration appears to be increasing with drilling depth (Figure 6). The projected Titov lode position is interpreted to be intersected in 80m (330m downhole depth).

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