Barton Gold’s Tunkillia Project Shows $2.7B Free Cashflow with 73% IRR

Strong Economic Foundations at Tunkillia

Barton Gold Holdings has unveiled an optimised scoping study for its flagship Tunkillia Gold Project in South Australia, confirming a compelling production profile of approximately 120,000 ounces of gold per annum. The study highlights a robust operating free cashflow of A$2.7 billion over a 10-year mine life, underpinned by a striking 73% equity internal rate of return and a rapid payback period of just 0.8 years. These figures reflect significant capital savings and operational efficiencies compared to earlier assessments, positioning Tunkillia as a highly attractive development opportunity.

The project’s economics benefit notably from two higher-grade ‘Starter Pits’ that are expected to generate substantial early cashflows, effectively doubling the initial capital investment within the first 13 months of operation. Barton is advancing environmental baseline studies and reserve conversion drilling, targeting a Mining Lease Application submission by the end of 2026, signaling an accelerated timeline for project development.

Leveraging Central Gawler Mill for Early Production

Complementing Tunkillia’s development, Barton is progressing its Central Gawler Mill (CGM) refurbishment, estimated at a modest A$26 million to restore throughput to 600,000 tonnes per annum. This fully permitted infrastructure offers a cost-effective pathway to ‘Stage 1’ production, leveraging nearby high-grade mineralisation from the Challenger Gold Project and tailings facilities. The updated JORC Mineral Resource Estimate for Challenger stands at 223,000 ounces of gold, including promising grades in both open pit extensions and underground zones.

Barton plans to commence feasibility studies through 2025 to define the optimal development strategy for CGM operations, aiming to commence production by the end of 2026. This approach is designed to generate early cashflows that can support the larger-scale Tunkillia ‘Stage 2’ operation, reducing overall project risk and dilution.

Exciting Silver Discovery at Tarcoola

At the Tarcoola Gold Project, Barton has reported exceptional high-grade silver intersections at the Tolmer prospect, including a standout 6 metres grading 4,747 grams per tonne silver. This discovery ranks among the highest-grade silver intersections globally in 2025 and has prompted an expedited follow-up drilling program totaling nearly 2,900 metres, alongside extensive soil sampling to delineate the mineralised footprint.

The silver zone’s proximity to existing infrastructure adds optionality to Barton’s development pipeline, potentially enhancing feedstock for the Central Gawler Mill and diversifying the company’s precious metals exposure.

Corporate Strength and Strategic Acquisitions

Financially, Barton strengthened its position with a $3 million premium equity placement completed during the quarter, issued at a 25% premium to the volume-weighted average price, with no associated fees. This capital injection, combined with $663,000 in quarterly revenues from asset monetisation and services, lifted the company’s cash reserves to $9 million while maintaining a debt-free balance sheet.

Additionally, Barton completed the acquisition of the Wudinna Gold Project rights, adding 279,000 ounces of gold resources and expanding its footprint in South Australia’s Eyre Peninsula. This acquisition enhances Barton’s resource base to over 2.1 million ounces of gold, reinforcing its growth trajectory.

Looking Ahead

With multiple projects advancing in parallel, Barton is well-positioned to transition from explorer to producer within the next 18 months. The company’s focus on de-risking through staged development, leveraging existing infrastructure, and securing robust financing options underscores a pragmatic approach to value creation. Pending assay results from ongoing drilling and the outcomes of feasibility studies will be critical milestones to watch as Barton moves closer to production.