How Barton Gold’s Early Drilling Success Could Transform Tunkillia’s Future
Barton Gold Holdings has completed its Phase 1 drilling at the Tunkillia Gold Project ahead of schedule and under budget, targeting the high-value S1 and S2 pits. The company anticipates strong cash flow and rapid payback from the S1 pit, with assay results expected soon.
- Phase 1 drilling completed early and under budget with 18,893m drilled
- Focus on high-grade S1 ‘Starter Pit’ expected to yield 206,000 ounces of gold
- S1 pit projected to generate over A$800 million in operating cash in first year
- Phase 2 drilling planned for March to June 2026 to upgrade resource categories
- Strong interest from development and finance partners supports project confidence
Phase 1 Drilling Success at Tunkillia
Barton Gold Holdings Limited (ASX, BGD) has announced the successful completion of its Phase 1 reverse circulation drilling program at the Tunkillia Gold Project in South Australia. The company drilled nearly 19,000 metres across 209 holes, finishing ahead of schedule and under budget. This drilling focused on upgrading the resource classification of the high-value S1 and S2 pits, with particular emphasis on the S1 ‘Starter Pit’ area, which contains some of the project’s richest gold mineralisation.
Economic Potential of the S1 Pit
The S1 pit is modelled to produce approximately 206,000 ounces of gold at a remarkably low cost of A$997 per ounce. Barton projects that this pit alone will generate over A$800 million in operating cash flow during its first year of production, effectively repaying the entire development cost more than twice over. This strong economic profile underpins the company’s confidence in advancing the project and attracting development partners.
Next Steps and Future Drilling
With Phase 1 complete, Barton is preparing for Phase 2 drilling scheduled between March and June 2026. This next stage aims to convert additional open-pit mineralisation at Tunkillia to higher confidence JORC categories, supporting further feasibility studies and mine planning. Diamond drilling will also be conducted to gather geotechnical and metallurgical data, essential for optimising pit design and confirming project viability.
Strategic Position and Industry Interest
Managing Director Alexander Scanlon highlighted the high-grade nature of the S1 zone and the strong interest from potential development and finance partners. The upgrade to JORC ‘Measured’ status is expected to bolster confidence in the project’s economics and facilitate discussions on the optimal development pathway. The company also acknowledged the efficient and professional work of Raglan Drilling in delivering the program safely and cost-effectively.
Broader Context within Barton Gold’s Portfolio
Tunkillia is one of several projects in Barton Gold’s portfolio, which includes the Challenger, Tarcoola, and Wudinna Gold Projects. Collectively, these assets offer a substantial resource base and production potential, supported by the region’s only gold mill. The company’s strategy focuses on advancing these brownfield projects toward production, leveraging strong resource upgrades and operational efficiencies.
Bottom Line?
With Phase 1 drilling delivering ahead of expectations, Barton Gold is well positioned to accelerate Tunkillia’s development and attract key partners.
Questions in the middle?
- When will the first assay results from the S1 pit drilling be released, and what grades can investors expect?
- How will Phase 2 drilling outcomes influence the timing and scale of Tunkillia’s development?
- What financing or development partnerships might Barton Gold secure following this resource upgrade?
