Avalon Minerals Ltd (now Sunstone Minerals Ltd) - October Update 2015

Since our September 2014 initiation report, market conditions have led the Board and Management to review plans for the Viscaria Copper-Iron Project in Sweden, with a low capex, high grade copper start-up operation now being planned, in lieu of that presented in the 2014 revised Scoping Study. The project has sufficient resources to subsequently upgrade this to a longer term, high throughput Cu/Fe operation with appreciable blue sky. We see potential additions coming from expansions to the known mineralisation and the good chance for regional exploration success The Company is clearly highly discounted by the market, despite having a high quality asset in a proven mining jurisdiction well served by infrastructure. As such we maintain our SPECULATIVE BUY rating, with a revised base case medium term price target of $0.52/share (using a forecast copper price of $3/lb) - this target is $0.23/share using spot copper prices (US$2.60/lb), still an appreciable premium to the current share price. Key price movers will include progress on funding and permitting. Download the report for more information.

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