Barton Gold Holdings has completed significant drilling upgrades and advanced feasibility studies across its South Australian projects, raising $15 million to support a targeted production restart by the end of 2026.
- Completed 18,900m mineral resource upgrade drilling at Tunkillia
- Ongoing Definitive Feasibility Study for Challenger Gold Project with Stage 1 production planned by end 2026
- High-grade gold and silver assays confirmed at Tolmer prospect within Tarcoola Project
- Raised $15 million via placement led by Franklin Templeton at a premium
- Cash position strong at $17.2 million with zero debt
Strong Resource Foundations at Tunkillia
Barton Gold Holdings has marked the close of 2025 with a robust update on its flagship Tunkillia Gold Project in South Australia. The company completed an extensive 18,900-metre mineral resource upgrade drilling campaign focused on the high-value Stage 1 and Stage 2 pit areas. These efforts have returned numerous shallow, high-grade gold assays, reinforcing the project's potential to generate approximately $1.3 billion in operating cash flow over the initial 27 months of production. Notably, the model anticipates a threefold payback of development costs within this period, assuming gold and silver prices of A$5,000 and A$50 per ounce respectively.
Challenger Project Poised for Production Restart
Meanwhile, at the Challenger Gold Project, Barton is progressing a Definitive Feasibility Study (DFS) aimed at restarting operations at the Central Gawler Mill (CGM). The DFS targets completion by mid-2026, with initial Stage 1 works planned by year-end. This phased approach focuses on processing historical higher-grade tailings and near-surface materials, deliberately deferring more complex underground operations to reduce technical and financial risk. Recent geotechnical drilling and a high-resolution gravity survey have further refined mine design and exploration targeting, underscoring the project's strategic importance as a low-risk production platform.
High-Grade Discoveries at Tarcoola’s Tolmer Prospect
Exploration success continues at the Tarcoola Gold Project, where diamond drilling at the Tolmer prospect has confirmed a compelling local structural model. The assays revealed impressive grades, including intervals with up to 17,600 grams per tonne silver and 51.2 grams per tonne gold near surface. These results validate the dual high-grade gold and silver zones and have prompted plans for follow-up drilling, particularly targeting the western silver zone discovered earlier in 2025. This ongoing work highlights Barton’s commitment to expanding its resource base through targeted exploration.
Financial Strength and Strategic Capital Raising
On the corporate front, Barton successfully raised $15 million through a placement led by Franklin Templeton, one of the world’s largest precious metals funds. The placement was priced at a 7.6% premium to the one-month volume-weighted average price, resulting in only modest dilution of approximately 5%. Additionally, a Share Purchase Plan (SPP) raised $660,000 at the same premium price, reflecting strong investor confidence. Barton ended the quarter with a healthy cash balance of $17.2 million and no debt, positioning the company well to fund ongoing development and exploration activities.
Expanding South Australian Footprint with Wudinna Acquisition
Barton also advanced its strategic footprint by completing the acquisition of the Wudinna Gold Project from Cobra Resources. This addition increases Barton’s total South Australian JORC gold mineral resources to over 2.14 million ounces. Metallurgical testwork on Wudinna indicates high gold recoveries and the potential to blend concentrates with existing processing infrastructure, enhancing operational flexibility and value creation.
Looking Ahead
Managing Director Alexander Scanlon emphasised the company’s focus on transitioning from developer to producer, aiming to become South Australia’s largest pure-play gold producer. With multiple projects advancing in parallel, a strong balance sheet, and supportive institutional backing, Barton is well positioned to deliver on its ambitious 150,000-ounce annual production target in the coming years.
Bottom Line?
Barton Gold’s comprehensive resource upgrades and strategic capital raise set the stage for a pivotal production restart in 2026, but execution risks remain as feasibility studies conclude.
Questions in the middle?
- Will the Definitive Feasibility Study confirm the economic viability of the Challenger Stage 1 restart as planned?
- How will Barton prioritise capital allocation between advancing Tunkillia development and Challenger operations?
- What are the potential impacts of fluctuating gold and silver prices on Barton’s projected cash flows and payback periods?