Barton Gold Extends High-Grade Zones at Tunkillia Ahead of 2027 PFS

Strong Assay Results Extend Tunkillia’s High-Value Zones

Barton Gold Holdings (ASX:BGD) has unveiled further compelling assay results from its extensive Phase 2 reverse circulation drilling campaign at the Tunkillia Gold Project in South Australia. The latest data focuses on Area 223 North and the southern extension of the main Area 223 open pit, revealing broad intersections of gold mineralisation with encouraging grades that bolster the prospect of resource upgrades.

Highlights include intercepts such as 29 metres at 1.24 g/t gold from 48 metres depth and 22 metres at 0.93 g/t from 44 metres, with higher-grade intervals within these broader zones reaching up to 4.08 g/t. These results continue to infill and extend the mineralisation footprint, supporting Barton’s strategy to enhance the project's scale and grade profile.

Advancing Pre-Feasibility Study and Resource Upgrade

With Phase 2 drilling nearing completion, Barton is progressing a Pre-Feasibility Study (PFS) led by GR Engineering Services, aiming for delivery in the first quarter of 2027. The PFS will incorporate the expanded drilling results and explore upside potential in mineral resources, including both gold and silver.

Managing Director Alexander Scanlon emphasised the significance of these results, noting that the assays confirm broad mineralisation and identify new higher-grade zones that could improve both quantity and quality of the resource. The company anticipates publishing comprehensive cross sections once all assays are received, followed by Mineral Resource upgrades and submission of its Mining Lease application.

Tunkillia’s Economic Profile Remains Robust

The project’s strong economics were outlined in a May 2025 Optimised Scoping Study, which projected annual production of approximately 120,000 ounces of gold and 250,000 ounces of silver. The study estimated an unlevered, pre-tax net present value (NPV) of around A$1.4 billion and an internal rate of return (IRR) exceeding 73%, with a payback period of less than one year based on gold and silver prices of A$5,000 and A$50 per ounce respectively.

The high-value S1 and S2 pits alone are modelled to deliver $1.3 billion in operating free cash flow over the initial 27 months of production at a competitive cash cost of A$1,429 per ounce of gold. The recent drilling infills these pits and the southern Area 223 zone, which are critical to the project's early cash flow profile.

Comprehensive Work Programs Support Development

Barton is concurrently advancing multiple technical and environmental programs to underpin the PFS and mining lease application. These include flora, fauna, and water surveys, Aboriginal heritage clearances, a 3,000-metre diamond drilling program for geotechnical and metallurgical analysis, and studies on tailings storage and infrastructure.

Additionally, the company is evaluating renewable energy options to reduce diesel dependence, reflecting a commitment to sustainable development. The ongoing drilling program also targets extensions beyond Area 223, including prospects like Area 51 and Tomahawk, which remain open for further mineralisation.

What Lies Ahead for Barton Gold and Tunkillia

As Barton Gold approaches the conclusion of its Phase 2 drilling and advances the PFS, the market will be watching closely for the Mineral Resource upgrades and the final development plan. The company’s ability to translate these promising assay results into a robust economic model and secure regulatory approvals will be pivotal.

With a strong cash position bolstered by recent capital raises and a comprehensive technical foundation, Barton is well positioned to progress Tunkillia towards production. However, the ultimate impact of the pending assay results and PFS findings on project economics and financing remains to be seen.