How Tolu Minerals Plans to Unlock 1.5Moz Gold Resource by 2026
Tolu Minerals Limited has revealed significant progress at its Tolukuma Gold Mine in Papua New Guinea, targeting resource expansion and first production by mid-2026. The company’s extensive drilling campaign and new infrastructure promise to reshape its growth trajectory.
- 1.5 million ounce gold resource with 1 million ounces already mined at high grade
- Seven diamond drill rigs active targeting resource expansion by June 2026
- New access road reduces logistics costs by over 75%, enhancing operational efficiency
- Refurbishment of processing plant and underground development underway
- Strong exploration pipeline with multiple high-potential targets identified via geophysical surveys
A High-Grade Asset with Proven History
Tolu Minerals Limited is advancing its Tolukuma Gold Mine in Papua New Guinea, a project boasting a world-class resource of 1.5 million ounces of gold, with 1 million ounces already mined historically at an impressive grade of 15 grams per tonne. This legacy underpins the company’s confidence as it prepares to ramp up operations and expand the resource base.
Infrastructure Unlocks New Potential
A pivotal development has been the completion of a new access road connecting Port Moresby directly to the mine site. This infrastructure milestone is a game changer, expected to slash logistics and fuel costs by more than 75%, dramatically improving operational economics and enabling more efficient transport of supplies and personnel. The road also opens up a broad pipeline of exploration prospects within the mining lease and adjacent licenses, promising long-term benefits for both the company and local communities.
Aggressive Drilling and Resource Expansion
Tolu is currently operating seven diamond drill rigs; three newly commissioned on site and two in Port Moresby; targeting near-mine extensions across the Tolukuma vein field. The company plans to complete 30,000 metres of drilling by the end of 2026, aiming to deliver a substantial upgrade to its JORC-compliant Mineral Resource Estimate by June next year. This drilling program is supported by extensive geochemical sampling and advanced geophysical surveys, including airborne magnetotelluric imaging, which have identified multiple high-priority targets such as porphyry copper-gold systems and epithermal gold veins.
Refurbishment and Production Outlook
Alongside exploration, Tolu is refurbishing its existing carbon-in-leach processing plant and Knelson concentrator, with the SAG mill already operational. Underground development is progressing with ore drives advancing toward near-term production, supported by fully installed and operational power units. The company targets first gold production in the second half of 2026, leveraging significant historical mining infrastructure to accelerate its path to cash flow.
Experienced Leadership and Strategic Vision
Guided by Managing Director and CEO Chris Muller; who brings two decades of experience and has been instrumental in discovering 90 million ounces of gold in Papua New Guinea; Tolu is positioning itself as a significant gold producer in the region. The company’s strategy balances near-term production with a robust exploration pipeline, including promising projects at Mt Penck and Ipi River, where recent geophysical surveys have revealed multiple new copper-gold targets.
Bottom Line?
With infrastructure in place and a rigorous drilling program underway, Tolu Minerals is poised to transform Tolukuma into a major gold producer by 2026, but the success of its ambitious expansion hinges on exploration outcomes and operational execution.
Questions in the middle?
- Will the ongoing drilling confirm the anticipated resource expansion and upgrade classifications?
- How will cost savings from the new access road impact overall project economics and capital expenditure?
- What are the timelines and capital requirements for scaling production beyond initial gold output?
