Tunkillia Project Targets 120,000oz Gold Annual Production with Phase 2 Drilling

Strong Foundations from Phase 1 Drilling

Barton Gold Holdings Limited (ASX:BGD) has taken a decisive step forward in developing its Tunkillia Gold Project in South Australia with the commencement of Phase 2 reverse circulation (RC) drilling. This follows a successful Phase 1 program that infilled high-value early pit areas, delivering broad, high-grade intersections that underpin the project’s robust economics.

The May 2025 Optimised Scoping Study (OSS) laid out an attractive development profile, forecasting annual production of approximately 120,000 ounces of gold and 250,000 ounces of silver. The study projected a net present value (NPV) of A$1.4 billion and an internal rate of return (IRR) exceeding 70%, with a payback period of less than a year, all based on conservative metal prices.

Phase 2 Drilling: Expanding and Upgrading Resources

Phase 2 drilling, now underway with Strike Drilling engaged for a 30,000-metre program, aims to upgrade the remaining optimised open pit areas to JORC (2012) standards. This drilling is critical to converting mineralisation into ‘Measured’ and ‘Indicated’ categories, which will support the declaration of Ore Reserves, a pre-feasibility study (PFS), and the Mining Lease (ML) application targeted for the end of 2026.

Phase 2 will focus on infilling and expanding the S1 and S2 pits, as well as the S3 pit and other optimised areas such as Area 223 North and Area 51. The goal is to solidify the resource base and accelerate project financing and development discussions.

Favourable Market Conditions and Strategic Outlook

Since the OSS, gold and silver prices have risen significantly, with gold now trading above A$2,000 per ounce and silver over A$60 per ounce, both well above the prices used in the original financial modelling. This price uplift enhances the project’s revenue potential and strengthens the case for rapid advancement.

Managing Director Alexander Scanlon emphasised the project’s strong cash flow potential, noting that the early ‘Starter Pit’ could pay back development costs twice over within the first year. Barton plans to expedite its Mining Lease application and engage with the South Australian Government and financiers to bring Tunkillia into production as swiftly as possible.

Looking Ahead

In addition to RC drilling, Barton plans diamond drilling to further refine pit designs and metallurgical parameters, with details to be announced in due course. The company’s broader portfolio, including the Challenger, Tarcoola, and Wudinna projects, complements Tunkillia’s development potential, positioning Barton Gold as a significant player in the South Australian gold sector.

With Phase 2 drilling underway and a clear timeline to a Mining Lease application, Barton Gold is setting the stage for a pivotal year in its growth trajectory, leveraging strong resource fundamentals and favourable market dynamics.