Tolu Minerals Raises $26.7M, Advances Production and Drilling at Tolukuma

Strategic Momentum Builds at Tolukuma

Tolu Minerals Limited has delivered a robust quarterly update for the period ending December 31, 2024, showcasing tangible progress towards restarting gold and silver production at its Tolukuma mine in Papua New Guinea. The company is advancing multiple fronts simultaneously, from infrastructure refurbishment to exploration, positioning itself to capitalize on a favourable metals price environment.

Central to this momentum is the commissioning of a modular gravity circuit process plant, designed to initiate early production with scalability in mind. The plant, engineered by Appropriate Process Technologies in South Africa, was installed and cold commissioned by late December, with operational feed expected in early Q1 2025. This approach reflects a pragmatic balance between cost efficiency and production ramp-up potential.

Expertise and Exploration: A Winning Combination

In a significant personnel move, Tolu appointed Chris Muller as Executive Group Geologist. Muller brings decades of Papua New Guinea experience, notably contributing to the resource growth at K92 Mining and the Wafi-Golpu project, collectively defining over 68 million ounces of gold equivalent. His arrival signals Tolu's commitment to a rigorous and expansive exploration program.

The company has completed a comprehensive Airborne Magneto Telluric (MT) survey covering 723 square kilometres, including high-resolution flights over key southern extensions of the mining lease. Final data interpretation is imminent, expected to refine target generation and guide drilling priorities.

Complementing geophysical advances, Tolu completed its maiden diamond drilling campaign at the Taula prospect, delivering impressive intercepts such as 4.8 metres at 22.8 g/t gold and 5.0 metres at 9.69 g/t gold. These results confirm the continuity and depth potential of the Taula vein system, extending strike length from 200 to 470 metres and reinforcing the prospect's significance within the Tolukuma structural corridor.

Infrastructure and Operational Readiness

Beyond exploration, Tolu has made substantial strides in site infrastructure. The refurbishment of the mine camp, installation of a 1.3 MW diesel power station, and commissioning of a tailings handling system adopting a zero discharge approach underscore a modern, sustainable operational ethos. The company is also progressing the critical 70-kilometre access road, recently rerouted to mitigate land slip risks, which will enhance logistics and reduce long-term costs.

Mining preparations include dewatering efforts, refurbishment of underground equipment, and installation of ventilation and electrical reticulation systems, all scheduled for commissioning in early 2025. These coordinated activities aim to support a phased return to nameplate production capacity.

Financial Position and Outlook

Financially, Tolu strengthened its balance sheet with a $26.7 million placement completed in late 2024, providing the capital necessary to sustain its accelerated development and exploration agenda. The company reported a cash balance of $16.7 million at quarter-end, with ongoing expenditure reflecting the ramp-up phase.

Environmental and social governance (ESG) considerations remain integral, with Tolu advancing permit amendments, baseline environmental studies, and community engagement initiatives. The company’s commitment to IFC/World Bank standards and transparent ESG reporting frameworks is notable in the context of sustainable mining practices.

As Tolu Minerals transitions from acquisition and refurbishment to active production and resource expansion, the coming months will be critical. The imminent release of detailed MT survey results and ongoing drilling campaigns will provide further clarity on the project's resource upside and operational trajectory.