Barton Gold Begins Sterilisation Drilling Ahead of Tunkillia Feasibility Study

Sterilisation Drilling Secures Infrastructure Footprint

Barton Gold Holdings (ASX:BGD) has commenced sterilisation drilling at its Tunkillia Gold Project in South Australia, a critical step to ensure that key infrastructure such as waste dumps, tailings storage, and processing facilities avoid valuable mineralisation zones. This groundwork supports the company’s broader development plans by safeguarding resource integrity ahead of construction.

Pre-feasibility Study Progresses Towards Early 2027 Milestone

The sterilisation drilling runs in parallel with an ongoing Pre-feasibility Study (PFS) aimed at delivering a comprehensive development blueprint for Tunkillia. Barton targets publication of the PFS in the first quarter of calendar year 2027, which will underpin a Mining Lease application and financing arrangements. The study builds on a May 2025 Optimised Scoping Study that painted a robust economic picture for the project.

Robust Economics Highlight Project Potential

The previous scoping study outlined an annual production profile of approximately 120,000 ounces of gold and 260,000 ounces of silver, with an unlevered, pre-tax net present value (NPV) of around A$1.4 billion and an internal rate of return (IRR) exceeding 70%. Notably, the S1 and S2 pits alone are expected to generate 365,000 ounces of gold and 923,000 ounces of silver within the first 27 months, producing operating free cash flow of about A$1.7 billion, more than four times the initial capital expenditure. This rapid payback period of less than one year underscores the project's financial appeal.

Extensive Drilling Supports Resource Upgrades

Barton has completed over 57,000 metres of reverse circulation and diamond drilling to upgrade the Tunkillia Mineral Resource Estimate (MRE) from inferred and indicated categories to measured and indicated JORC classifications. The PFS aims to convert these into proven and probable Ore Reserves, providing the high confidence needed to secure development financing. Managing Director Alex Scanlon noted positive surprises in some zones, hinting at material upside potential as assay results and resource updates are awaited.

Parallel Technical Programs Advance Project Readiness

Alongside drilling, Barton is progressing geotechnical, metallurgical, and infrastructure planning activities. These efforts are designed to streamline the path toward development and support the forthcoming Mining Lease application. The company’s integrated approach reflects a clear focus on accelerating Tunkillia’s transition from resource to production.

A Portfolio with Regional Scale Ambitions

Tunkillia forms part of Barton’s broader South Australian portfolio, which also includes the Challenger Gold Project with a fully permitted mill, the Tarcoola Gold Project featuring a high-grade Tolmer discovery, and the Wudinna Gold Project. Together, these assets position Barton to target future gold production of 150,000 ounces per annum from over 2 million ounces of gold and 3 million ounces of silver in JORC resources.