How Will Barton Gold Turn 313koz at Challenger into Production by 2026?

• Updated Challenger resource estimate at 313koz gold
• Central Gawler Mill reinstatement cost preliminarily estimated at A$26 million
• Two-phase development – tailings reprocessing followed by fresh ore mining
• Feasibility studies underway targeting end-2026 operations
• Total Barton JORC resources now 2.23Moz gold and 3.1Moz silver

Resource Upgrade and Strategic Positioning

Barton Gold Holdings Limited (ASX – BGD) has announced a significant update to its Challenger Gold Project in South Australia, with the JORC (2012) Mineral Resources Estimate (MRE) increasing to 313,000 ounces of gold at an average grade of 0.92 grams per tonne. This upgrade incorporates mineralisation from both open pit and underground sources, including the Challenger Main Open Pit, Challenger West Open Pit, and deeper underground zones.

The project benefits from proximity to the fully permitted Central Gawler Mill (CGM), a key asset that Barton plans to reinstate to its original 600,000 tonnes per annum processing capacity. Preliminary engineering estimates place the reinstatement cost at approximately A$26 million, with a margin of ±30%, reflecting a relatively low capital hurdle given the scale and existing infrastructure.

Phased Development Approach

Barton is targeting a two-phase transition to production. The initial phase focuses on reprocessing high-grade tailings from historical operations, leveraging metallurgical testwork that suggests recoveries of up to 70% are achievable with finer grinding. This phase is expected to reduce upfront capital expenditure and operational risk, potentially allowing cash flow generation to fund the subsequent phase.

The second phase envisages the restart of fresh rock mining operations from the open pit and underground deposits, feeding ore into the refurbished Central Gawler Mill. This staged approach aims to optimise costs and de-risk the pathway to becoming a gold producer.

Feasibility and Financing Outlook

Barton has engaged Ammjohn Solutions to review the mill reinstatement and is progressing definitive feasibility studies, with completion targeted by the end of 2025 or early 2026. The company is also in discussions with financiers to secure low-dilution credit financing options, underscoring confidence in the project's economic potential amid a backdrop of record-high gold prices.

Managing Director Alexander Scanlon highlighted the strategic advantage of the project’s existing permits and infrastructure, noting that the updated resource and mill position Barton to join a select group of ASX-listed gold producers. The anticipated start of initial operations by the end of 2026 marks a pivotal milestone in Barton’s corporate evolution.

Broader Resource Base and Regional Growth

Beyond Challenger, Barton’s total JORC Mineral Resources now stand at 2.23 million ounces of gold and 3.1 million ounces of silver across its portfolio, including the Tarcoola, Tunkillia, and Wudinna projects. The company’s integrated approach, anchored by the Central Gawler Mill, offers optionality and scalability for regional growth.

Environmental permits are in place, and the project operates within established mining leases, including areas under Native Title agreements with appropriate royalties. The company’s comprehensive geological and metallurgical data underpin a robust resource base with reasonable prospects for economic extraction.

Bottom Line?

Barton Gold’s resource upgrade and phased development strategy set the stage for a potentially transformative 18 months as it pushes toward production and producer status.

Questions in the middle?

• How will Barton manage the transition from tailings reprocessing to fresh ore mining operationally and financially?
• What are the key risks and uncertainties in the feasibility studies, particularly regarding metallurgical recoveries and capital costs?
• How might Barton’s financing strategy impact shareholder dilution and project timelines?