Tolu Minerals Limited reports steady progress at its Tolukuma Gold Mine, advancing a major mine expansion project targeting 500 tonnes per day production by the first quarter of 2027. Key infrastructure developments, drilling expansion, and processing plant refurbishments underpin the company’s growth strategy.
- Major mine expansion project underway targeting 500 TPD production by Q1 2027
- Expansion of drilling fleet to eight rigs to accelerate exploration and resource upgrades
- Underground operations advancing with new access tunnels and dewatering progress
- Processing plant refurbishment nearing completion to support early gold recovery
- Negotiations for hydro power plant aiming to reduce operational costs and improve sustainability
Steady Progress at Tolukuma Gold Mine
Tolu Minerals Limited has delivered a comprehensive quarterly update highlighting significant advancements at its Tolukuma Gold Mine in Papua New Guinea. The company is on track to ramp up production to 500 tonnes per day (TPD) by early 2027, marking a pivotal step in its growth trajectory. This ambitious target is supported by a major mine expansion project that includes substantial infrastructure development and resource upgrades.
The planned expansion centres on a mine-defining project featuring the construction of new access tunnels, dewatering systems, and underground exploration platforms. The initial phase involves a 1.4-kilometre tunnel with potential for extension, designed to improve ventilation, safety, and operational efficiency. Notably, the project incorporates innovative tailings management through underground paste backfill, which promises environmental and power savings benefits.
Exploration and Drilling Intensify
Exploration efforts have intensified with the expansion of the drilling fleet to eight rigs by mid-2026. This increase will accelerate both surface and underground drilling focused exclusively on near-mine targets to support the pre-production restart. The company has already completed 13 kilometres of exploration roads within its mining lease, facilitating access to high-grade mineralisation zones that remain open at depth and along strike.
Strategic underground access via the new incline will unlock the full two-kilometre strike length of the deposit, enabling superior drill accuracy and geological confidence. Underground drilling platforms, or 'cuddies,' are being developed to optimise exploration efficiency and reduce environmental impact. These advances are expected to enhance resource modelling and reduce capital and geological risks associated with mining.
Operational Readiness and Processing Plant Refurbishment
Underground operations have made tangible progress, with the PNG Mineral Resources Authority issuing the necessary mining licence and the commencement of development blasts. Dewatering efforts have achieved a nine-metre vertical descent in the past month, facilitating safer and more effective underground access. The rehabilitation of main and working drives is complete, and a full underground operating fleet is now onsite.
At the processing plant, refurbishment of key components such as the SAG mill, Knelson concentrator, and Acacia reactor is nearing completion. The elution circuit has been refurbished, and leach tanks serviced to recover leached carbon, all in preparation for a full plant restart. The company is poised to appoint a preferred contractor to oversee the recommissioning, signalling a clear pathway to early gold recovery.
Sustainable Power and Assay Facility Developments
In a bid to reduce operational costs and enhance sustainability, Tolu Minerals is negotiating term sheets for a hydro power plant with preferred suppliers. The power purchase agreement is being carefully structured to protect mine economics, with construction expected to commence imminently and power delivery targeted for early 2027. This initiative will integrate with existing diesel power generation to optimise energy use on site.
Additionally, the company is constructing a certified in-house assay laboratory equipped with fire assay and graphite furnace atomic absorption spectrometry. This facility aims to improve assay turnaround times, supporting grade control and reconciliation efforts. The assay lab is expected to be operational by the third quarter of 2026, further strengthening operational capabilities.
Financial Position and Outlook
Tolu Minerals maintains a strong cash position with over $51 million in cash and equivalents at quarter-end, supporting disciplined capital deployment across multiple workstreams. While no substantive mining production occurred during the quarter, the company’s focus on infrastructure, exploration, and processing readiness lays a solid foundation for the planned production ramp-up. Management emphasizes safety, operational discipline, and cost control as it advances toward delivering value for shareholders.
Dr Chris Muller, Managing Director and CEO, highlighted the strategic importance of the mine-defining project and the clear operational pathway ahead. He underscored the company’s commitment to a safe and reliable return to production, noting that exploration and development activities are tightly integrated to maximise resource growth and mine life extension.
Bottom Line?
Tolu Minerals is methodically building momentum toward a significant production restart, but upcoming drilling results and infrastructure contract awards will be critical to sustaining investor confidence.
Questions in the middle?
- How will the finalisation of infrastructure contracts impact the project timeline and capital expenditure?
- What are the expected grades and volumes from the expanded underground drilling program?
- How will the integration of hydro power affect operational costs and environmental footprint long term?