Barton Gold has launched an 18,000m drilling campaign at its Tunkillia project to upgrade mineral resources and fast-track a mining lease application by 2026, targeting robust early cash flows from high-value starter pits.
- 18,000m reverse circulation drilling underway targeting JORC Ore Reserve conversion
- Starter pits expected to yield 365,000oz gold and A$1.3 billion cash in first two years
- May 2025 Optimised Scoping Study projects strong financial metrics including 73% IRR
- Pre-Feasibility Study and Mining Lease application targeted by end of 2026
- Multiple development and finance partners engaged following study results
Tunkillia Drilling Program Kicks Off
Barton Gold Holdings Limited has commenced a significant resource upgrade drilling program at its flagship Tunkillia Gold Project in South Australia. The initial phase involves approximately 18,000 metres of reverse circulation drilling focused on the high-value 'Starter Pits' identified in the company's May 2025 Optimised Scoping Study (OSS). This drilling aims to convert existing mineral resources into JORC-compliant Ore Reserves, a critical step towards advancing the project into development.
Strong Early Cash Flow Potential
The OSS outlined a compelling development profile, with the Starter Pits modelled to produce around 365,000 ounces of gold and generate approximately A$1.3 billion in operating free cash flow over the first two years. Notably, the Stage 1 pit alone is expected to deliver 206,000 ounces of gold and 491,000 ounces of silver in the first 13 months, paying back upfront capital costs more than twice over during this period. These figures underscore the project's potential to rapidly generate significant returns and de-risk early development.
Path to Feasibility and Mining Lease
Barton plans to complete a Pre-Feasibility Study (PFS) and submit a Mining Lease application by the end of 2026. Following the current drilling phase, a second stage of reverse circulation and diamond drilling is scheduled for early 2026 to further upgrade resources, expand geotechnical and metallurgical data, and optimise pit designs. This staged approach reflects a methodical progression towards project financing and construction readiness.
Market Interest and Strategic Optionality
Since releasing the OSS, Barton has attracted interest from multiple prospective development and finance partners, highlighting the market's recognition of Tunkillia's robust economics and strategic location within the Gawler Craton. Managing Director Alexander Scanlon emphasised the company's focus on maximising optionality, noting that the high-grade Starter Pits provide a strong foundation for rapid payback and scalable growth.
Broader Portfolio Context
Barton Gold's portfolio also includes other promising assets such as the Challenger, Tarcoola, and Wudinna Gold Projects, which collectively hold over 2.2 million ounces of gold and 3.1 million ounces of silver in JORC Mineral Resources. The Tunkillia project remains the company's flagship development, with the ongoing drilling campaign representing a pivotal milestone in unlocking its value.
Bottom Line?
As Barton advances drilling and feasibility work, investors will watch closely for resource upgrades that could unlock substantial value and accelerate project financing.
Questions in the middle?
- Will the drilling results confirm the high-grade resource conversion needed for Ore Reserve classification?
- How will Barton structure financing and partnerships to support development beyond the Starter Pits?
- What operational challenges might arise in scaling from Starter Pits to full project production?