Tolu Minerals builds momentum toward Tolukuma restart with 909koz resource

Record drilling expands Tolukuma’s production case

Tolu Minerals Limited (ASX:TOK) is moving the Tolukuma Gold Mine closer to a planned early 2027 restart, but the project is now entering the less forgiving phase of the story: converting drilling momentum and geological inventory into a functioning mine.

The company completed a record 10,772 metres of diamond drilling during the September quarter, including 4,729 metres in September alone. Seven rigs remained active, with drilling reaching 32,058 metres for 2026 by 23 October and October output running at 4,276 metres by that date. Tolu says its full-year drilling total is expected to reach approximately 43,000 to 44,000 metres.

That pace builds on the Tolukuma resource upgrade, which had lifted the mine’s reported resource by 81% to 909,000 ounces. The updated estimate now stands at 4.31 million tonnes grading 6.57 grams per tonne gold at a 3 grams per tonne cut-off, including a maiden Indicated Resource of 199,000 ounces at 7.33 grams per tonne.

Mine development and plant refurbishment move in parallel

Underground crews completed 327 metres of lateral development during the quarter and moved 21,156 tonnes of material to surface, including 3,475 tonnes of ore. Surface stockpiles, including material held at the tailings storage facility, totalled about 10,900 tonnes at quarter-end. The company said mining at the Zine workings resumed in October after ventilation upgrades, with weekly production above plan and a record 39 development rounds in the week to 12 October.

The operating target is being supported by plant and infrastructure work rather than production revenue. Engineering partner GRES is overseeing refurbishment of the processing plant, including replacement of CIL tanks and structural steel, preparation for the SAG mill gear and pinion change, and corrosion repairs to the ROM bin, apron feeder and conveyor. New SAG mill liners and a trommel have been manufactured, while an elution heater and acid-wash column are in transit.

The restart plan was previously described as funded through a PGK95 million debt facility, and the latest figures show how that funding has changed Tolu’s balance sheet. Cash stood at approximately A$56.5 million on 30 September, up from A$50 million three months earlier, after the company drew the five-year facility from National Banking Corporation. The loan carries interest of 9.60% a year, is secured over company assets, and requires interest-only payments for its first two years.

Assay delays create a bottleneck for resource conversion

The most immediate constraint is not drilling capacity but information flow. External laboratories are taking up to about four months to return assays, leaving results from a large number of holes outstanding. Tolu is accelerating commissioning of an in-house fire assay laboratory at Tolukuma, while new core-handling facilities, an automatic core saw and on-site analytical instruments are being added to match the drilling rate.

The company expects further assays from areas including the Zine South shoot, while two rigs are following up the new 120 Vein shoot identified in hole TSD-26-049. Shallow-dipping holes are also planned to test open-pit potential at Zine. Those results may add to the resource story, but the existing 909,000 ounces is not yet an Ore Reserve and the filing does not provide a production rate or mine plan capable of converting the inventory into forecast output.

Cash funds the campaign, with execution still the central risk

Tolu used A$20.58 million in investing cash flow during the quarter, including A$13.54 million on exploration and evaluation and A$7.04 million on property, plant and equipment. On the Appendix 5B calculation, the company had an estimated 3.63 quarters of funding available based on quarter-end cash and the reported current rate of relevant outgoings. That measure is a snapshot rather than a forecast of the cost of completing the restart.

Next milestones include the arrival of an Epiroc S1D drill in November, a Boomer M20 twin-boom jumbo in late December, the start of long-hole stoping, continued stockpile growth and completion of the SAG mill gear change and CIL work. Regional exploration is also advancing across Mt Penck, Ipi River and Frontier, although Tolukuma remains the operating priority.

The investment question has therefore shifted from whether Tolu can demonstrate geological scale to whether it can deliver the sequence that follows: timely assays, resource conversion, underground ore development, plant commissioning and a restart on schedule. Until those steps are completed, early 2027 remains a company target rather than an achieved production outcome.