Can Barton Gold Secure Mining Lease and Financing to Unlock Tunkillia’s Potential?

Tunkillia Project Enters Critical Development Phase

Barton Gold Holdings Limited has officially commenced its 2026 drilling programs at the Tunkillia Gold Project in South Australia, signalling a decisive step towards advancing the project into production. The company has engaged Underdale Drillers to undertake approximately 900 metres of water bore drilling, a crucial move to secure reliable water sources that could enhance project economics and reduce operational risks.

The water drilling initiative is complemented by a substantial resource upgrade campaign scheduled to begin in March 2026. This phase involves around 28,000 metres of reverse circulation drilling aimed at converting the remaining optimised scoping study (OSS) open pit mineralisation into JORC (2012) ‘Indicated’ category resources. Alongside this, a 3,000-metre diamond drilling program will run in parallel to bolster geotechnical and metallurgical data, supporting detailed mine design and production modelling.

Robust Economics Underpinning Project Momentum

The May 2025 OSS painted a compelling picture for Tunkillia, forecasting annual production of approximately 120,000 ounces of gold and 250,000 ounces of silver. The study highlighted a net present value (NPV) of A$1.4 billion (unlevered, pre-tax) and an internal rate of return (IRR) of 73.2%, with a remarkably short payback period of just 0.8 years. These figures underscore the project's potential to generate significant free cash flow and rapid capital recovery.

Notably, current gold and silver prices have risen by about A$1,500 per ounce and A$50 per ounce respectively since the OSS assumptions, potentially enhancing revenue projections further. Barton’s Managing Director, Alexander Scanlon, emphasised the financial leverage offered by the project’s higher-grade ‘Starter Pit’, which is expected to repay development costs twice over within the first year of operations.

Pathway to Production and Financing

Barton is targeting the completion of JORC Ore Reserves, a pre-feasibility study (PFS), and submission of a Mining Lease application by the end of 2026. These milestones are critical for unlocking project financing and progressing towards commercial production. The company also plans to expedite financing discussions in parallel with efforts to reinstate operations at its nearby Challenger Gold Project, aiming to achieve a combined gold production target of 150,000 ounces annually.

Recent phase 1 drilling results have already demonstrated promising grades, with multiple intervals exceeding 2 grams per tonne gold and some high-grade hits reaching above 40 grams per tonne. These results provide confidence in the resource base and support the planned upgrade drilling campaign.

As Barton advances through these development stages, the market will be watching closely for assay results from the ongoing drilling programs and regulatory progress on the Mining Lease application. Success in these areas will be pivotal in transforming Tunkillia from a promising resource into a producing asset.