Barton Gold Expands Tunkillia Drilling with Promising Assay Results

Expanded Drilling Targets Resource Growth and Grade Improvement

Barton Gold Holdings (ASX:BGD) has ramped up its Phase 2 upgrade drilling at the Tunkillia Gold Project in South Australia, extending the reverse circulation (RC) component to approximately 40,000 metres. This expansion follows encouraging interim assay results from both Phase 1 and ongoing Phase 2 drilling, which indicate potential extensions of mineralisation and higher-grade zones within the project’s optimised open pit outlines.

The drilling program aims to enhance the JORC Mineral Resources and underpin a Pre-feasibility Study (PFS) slated for completion before the end of 2026. The PFS will support a Mining Lease application and project financing discussions in 2027, critical steps for advancing Tunkillia towards production.

Robust Economics Underpin Expansion

Tunkillia’s May 2025 Optimised Scoping Study (OSS) painted a compelling financial picture, projecting annual production of around 120,000 ounces of gold and 250,000 ounces of silver. The study estimated an unlevered, pre-tax net present value (NPV) of approximately A$1.4 billion and an internal rate of return (IRR) exceeding 73%, with a payback period of less than a year.

Within the project, the S1 and S2 pits alone are modelled to generate roughly 365,000 ounces of gold and 923,000 ounces of silver, producing about A$1.3 billion in operating free cash over the first 27 months at conservative metal price assumptions. Barton notes that at current prices, this figure could rise to approximately A$1.75 billion.

Drilling Confirms High-Value Starter Pits and Extensions

Interim assay analyses have highlighted upside potential in the high-value ‘Starter’ pit areas, including possible extensions of the main open pit and higher-grade zones in the ‘Area 51’ open pit mineralisation. These findings suggest the project’s resource base could grow both in size and grade, potentially enhancing early cash flow and reducing per-ounce cash costs.

Managing Director Alexander Scanlon emphasised the significance of these results, stating the expansion aims to “potentially increase both the quantum and grade of Resources within Tunkillia’s optimised open pit outlines,” which could materially boost the project’s already robust economic profile.

Strategic Positioning Within South Australian Gold Hub

Barton Gold’s Tunkillia project forms part of a broader portfolio of South Australian assets, including the Challenger, Tarcoola, and Wudinna projects, collectively boasting over 2.2 million ounces of gold and 3.1 million ounces of silver in JORC Mineral Resources. The company’s ownership of the region’s only gold mill at Central Gawler Mill further strengthens its development strategy.

The expanded drilling program and forthcoming PFS are key milestones in Barton’s pathway to production, complementing recent capital raises that have secured funding for resource upgrades and feasibility studies across its South Australian projects.