Barton Gold reports standout high-grade assays from Phase 2 drilling at Tunkillia’s Area 51, highlighting potential resource growth and open pit extensions that could extend mine life and underpin a Pre-Feasibility Study by year-end.
- Phase 2 drilling delivers highest-grade results to date at Area 51
- Broad, high-grade mineralisation suggests north-south pit extensions
- ~30,000m drilling program underway targeting resource upgrade
- Pre-Feasibility Study and Mining Lease application targeted for 2026
- Robust project economics based on strong gold and silver price assumptions
Highest-Grade Assays Signal Resource Growth Potential
Barton Gold Holdings Limited (ASX:BGD) has unveiled the first assays from its Phase 2 reverse circulation drilling at the Tunkillia Gold Project’s Area 51, delivering the highest-grade results the company has recorded to date. These broad, high-grade intersections not only confirm the continuity of mineralisation within the existing optimised open pit but also point to significant potential for resource growth and extensions both along strike and at depth.
The standout results include intervals such as 43 metres at 1.82 g/t gold from 39 metres depth, featuring high-grade zones up to 6.65 g/t over 2 metres, and 52 metres at 0.95 g/t gold from 101 metres. Notably, the broadest and highest-grade assays cluster at the northern and southern ends of the current open pit model, indicating potential for substantial pit expansion. Barton is actively considering further drilling in these areas to test these extensions.
Expansive Drilling Program Supports Resource Upgrade
The ongoing Phase 2 program targets approximately 30,000 metres of RC drilling, complemented by around 3,000 metres of diamond drilling for geotechnical and metallurgical data. This campaign builds on the Phase 1 infill drilling that focused on the high-value S1 and S2 pits, which are projected to generate about A$1.3 billion in operating profit during the initial 2.5 years of operation under conservative gold and silver price assumptions (A$5,000/oz and A$50/oz respectively).
These drilling efforts aim to upgrade the mineral resource to JORC Measured and Indicated categories, facilitating conversion to Ore Reserves ahead of a Pre-Feasibility Study (PFS) targeted for completion by the end of 2026. The PFS will underpin a Mining Lease application and accelerate project finance discussions, positioning Tunkillia for potential development in a favourable precious metals price environment.
Robust Economics and Project Pipeline
Tunkillia’s May 2025 Optimised Scoping Study outlined compelling economics: annual production of approximately 120,000 ounces of gold and 250,000 ounces of silver, an unlevered pre-tax net present value of about A$1.4 billion, and an internal rate of return exceeding 70%. The early-stage S1 and S2 pits, now supported by high-grade infill drilling, are expected to deliver rapid payback with average cash costs of A$1,429 per ounce of gold.
Complementing Tunkillia’s progress, Barton Gold is advancing other assets in the region, including the Challenger Gold Project, where recent drilling has confirmed new mineralisation zones, and the Tolmer Silver prospect with record-high silver assays. These developments collectively enhance Barton’s regional footprint and production pipeline, as detailed in the company’s recent high-grade drilling breakthroughs and accelerated drilling at Tolmer silver updates.
Next Steps in Project Advancement
With Phase 2 drilling ongoing and assays progressively released, Barton Gold is well-positioned to refine its resource models and optimise open pit designs. The company’s Managing Director Alexander Scanlon highlighted the potential for resource growth and mine life extension at Area 51, reinforcing confidence in the project’s economics and development timeline.
Completion of the PFS by the end of 2026 remains a key milestone, after which Barton intends to submit its Mining Lease application and engage with financiers to secure project funding. The recently reported assays inject fresh momentum into Tunkillia’s development, but the full impact will hinge on the comprehensive results of the Phase 2 program and subsequent feasibility outcomes.
Bottom Line?
Barton Gold’s latest high-grade assays at Tunkillia’s Area 51 bolster the case for resource growth and pit expansion, setting the stage for a critical Pre-Feasibility Study and Mining Lease application by year-end.
Questions in the middle?
- Will further Phase 2 drilling confirm the north-south mineralisation extensions at Area 51?
- How will the upcoming PFS refine the project’s economic assumptions amid evolving gold and silver prices?
- What financing structures will Barton pursue to advance Tunkillia into production following the Mining Lease application?