Barton Gold Unveils A$26m Plan to Revive Central Gawler Mill by 2026

A Cost-Effective Path to Production

Barton Gold Holdings Limited (ASX, BGD) has taken a significant step forward in its development strategy by announcing a preliminary engineering evaluation estimating the refurbishment cost of its Central Gawler Mill (CGM) at approximately A$26 million, with a margin of error of ±30%. This figure represents a fraction of the cost required to build a new processing facility, positioning Barton to leverage existing assets for a low-cost transition to gold production.

The CGM, originally built in 2002 and expanded in 2010, was placed on care and maintenance in 2018 after producing around 1.2 million ounces of gold with high recovery rates. The refurbishment plan aims to restore the mill to its original design capacity of 600,000 tonnes per annum of fresh ore, incorporating upgrades such as enhanced mill motors, automation, and a new pre-leach thickener to improve operational efficiency.

Operational and Financial Advantages

Processing costs are estimated at A$44.50 per tonne, with personnel and administration costs accounting for a significant portion. Barton is exploring automation improvements that could further reduce these costs. Importantly, refurbishing the CGM avoids reliance on third-party toll milling, which can erode profitability, and offers more attractive financing options due to the mill's existing permits and infrastructure.

Early discussions with banks and non-bank financiers indicate interest in providing credit and working capital solutions, supported by Barton's above-ground stockpiles of mined materials that can serve as collateral. This approach aligns with Barton’s philosophy of maintaining strong capitalisation while minimising shareholder dilution, a strategy that has proven effective since its 2021 IPO.

Strategic Resource Base and Future Outlook

The refurbishment announcement follows Barton's recent update of its Challenger Gold Project mineral resource estimate, which now stands at 223,000 ounces of gold. The Challenger project is adjacent to the CGM, facilitating a streamlined feedstock supply. Additionally, historical tailings with recoverable gold grades present an opportunity to defer some capital expenditures by initially processing these materials, potentially funding further upgrades from operating cash flow.

Barton plans to complete a detailed feasibility study by the end of 2025, aiming to support a decision to commence initial Stage 1 operations at the CGM by the end of 2026. The company is also investigating technological enhancements such as finer grinding to increase gold recovery and throughput, which could unlock additional value from its resources.

Balancing Opportunity with Caution

While the refurbishment cost estimate and production targets are promising, Barton cautions that these figures are preliminary and exclude contingencies. The company emphasizes that the information does not constitute a production target under ASX Listing Rules or the JORC Code, underscoring the need for further feasibility work and market conditions to align.

Nonetheless, the strategic use of existing infrastructure, combined with a robust resource base and multiple financing avenues, positions Barton Gold to potentially accelerate its path to production in a cost-effective manner.