Tolukuma Mine Restart Faces Regulatory and Execution Challenges Despite Funding
Tolu Minerals has secured a $60.5 million capital raise and appointed Dr Chris Muller as CEO, setting the stage for a production restart at Tolukuma Gold Mine in the second half of 2026 alongside a major drilling program.
- Appointment of Dr Chris Muller as CEO and Managing Director
- Successful $60.5 million capital raise via share issuance
- Positive progress on SAG mill refurbishment targeting 500 tonnes per day
- Launch of a 30,000-metre drilling program in 2026
- Exploration advances identifying new porphyry targets at Mt Penck and Ipi River
Leadership and Capital Injection
Tolu Minerals Limited has marked a pivotal quarter with the appointment of Dr Chris Muller as CEO and Managing Director, effective 10 November 2025. Dr Muller, renowned for his discoveries at Wafi-Golpu and K92, brings a wealth of expertise to the company’s flagship Tolukuma Gold Mine in Papua New Guinea. This leadership change coincides with a substantial capital raise of AUD $60.5 million through the issuance of approximately 50.4 million shares at $1.20 each, bolstering the company’s financial position to support its ambitious development plans.
Operational Progress and Production Outlook
Significant refurbishment work on the original SAG mill and processing plant at Tolukuma is underway, with encouraging signs pointing towards a production recommencement targeting around 500 tonnes per day in the second half of 2026. The company is actively engaging contractors to accelerate mill advancement and preparing for the arrival and training of new drilling crews. These efforts are integral to the planned 30,000-metre drilling program slated for 2026, which aims to expand and upgrade the mine’s resource base.
Exploration and Resource Development
Exploration activities have intensified following the results of an Airborne Magneto Telluric survey, which identified multiple conductive vein targets similar to the Tolukuma vein corridor. Notably, a cluster of eight porphyry targets has been delineated at the Mt Penck project on New Britain Island, alongside promising targets at the recently awarded Ipi River project. Complementing geophysical data, a major surface geochemical sampling program commenced in July, focusing on near-mine and regional targets. The company has opted to manage drilling operations in-house, reflecting confidence in its technical capabilities.
Strategic Focus and Cost Management
Tolu Minerals is pursuing a strategic realignment aimed at reducing historic cost structures at Tolukuma. Key initiatives include developing access roads, refurbishing the hydro power station, and enhancing underground mine access with dewatering drives. The company is also advancing studies for a long-term tailings dam solution and upgrading the on-site assay laboratory to improve testing efficiency and cost-effectiveness. These measures underscore a commitment to sustainable and efficient operations as the mine prepares for a full-scale production ramp-up.
Financial Position and Outlook
Exploration and evaluation expenditure for the quarter totaled $8.5 million, reflecting the ramp-up in activities. Despite no substantive mining production during the period, the recent capital raise has strengthened Tolu’s cash position to over $10 million, ensuring funding continuity for ongoing exploration and development. The company remains optimistic about meeting its business objectives and advancing Tolukuma’s potential as a significant gold producer in Papua New Guinea.
Bottom Line?
With fresh leadership and a robust capital base, Tolu Minerals is poised to transform Tolukuma into a renewed gold production hub by late 2026.
Questions in the middle?
- How will Dr Chris Muller’s leadership influence the pace and scale of Tolukuma’s development?
- What are the expected timelines and milestones for the 30,000-metre drilling program results?
- How might pending tenement renewals and regulatory approvals impact project execution?
