Barton Gold Holdings (ASX: BGD) (OTCQB: BGDFF) has successfully completed a significant reverse circulation drilling campaign at its Tunkillia gold project located in South Australia. The drilling campaign, which spanned 5,064 meters, was aimed at expanding the project’s resource base and refining its economic outlook, following the scoping study released earlier this year.
The work targeted extensions to the project’s resource block model and focused on areas that could potentially upgrade the current 1.5 million-ounce resource estimate. Barton Gold’s drilling operations concentrated on parallel gold lodes and depth extensions beneath the proposed open pit, focusing on areas where previous gold mineralization had been identified but not fully incorporated into the estimate due to an insufficient data point density.
Objective: Upgrading Resource Estimate and Optimizing Scoping Study
Barton Gold’s reverse circulation drilling program is part of a broader strategy to enhance the Tunkillia project’s resource potential. The company aims to upgrade its resource estimate of 1.5 million ounces of gold by drilling into areas where extensions to known mineralized lodes were identified, but not adequately represented in previous resource models.
The drilling primarily focused on depth extensions below the proposed open pit and parallel gold lodes, areas where mineralization had been observed in earlier drilling but lacked sufficient data to justify inclusion in the resource estimate. By adding these extensions, Barton Gold seeks to refine the geological model and potentially expand the resource, supporting future development plans for the project.
The data collected during the drilling campaign will also inform a more optimized version of the scoping study conducted earlier this year. This updated study is expected to provide improved clarity on the economic viability of the Tunkillia project, with the goal of moving the project closer to production.
Tunkillia’s Initial Scoping Study Highlights Promising Economics
The initial scoping study released in July 2024 outlined a robust economic scenario for the Tunkillia gold project, based on conservative assumptions regarding production costs, resource extraction, and infrastructure requirements. The study estimated that the project could produce approximately 130,000 ounces of gold per year with an all-in sustaining cost (AISC) of $1,917 per ounce of gold.
This initial study also projected an internal rate of return (IRR) of 40% and a rapid 1.9-year payback period for the project’s initial capital investment. Production would be driven by a high-grade ‘starter pit,’ which is expected to yield around 180,000 ounces of gold in the first 18 months. This early-stage production would help fund the subsequent phases of the project, with plans to ramp up gold extraction over time.
Despite the relatively conservative assumptions underpinning the scoping study, Barton Gold’s Managing Director, Alexander Scanlon, emphasized the project’s strong economic fundamentals. He noted that Tunkillia’s viability has been demonstrated through rigorous analysis, with conservative estimates around comminution (crushing and grinding) design, power consumption, development schedule, and procurement costs. According to Scanlon, these factors provide a solid foundation for the project’s future development and highlight its potential as a competitive gold operation.
Strategic Focus on Project Advancement and Stage 1 Operations at Tarcoola
As Barton Gold works to advance Tunkillia’s development, the company is also making significant progress on its Tarcoola project. According to Scanlon, the next few quarters will be pivotal for Barton Gold, as the company focuses on completing an optimized scoping study for Tunkillia while also preparing for potential Stage 1 operations at Tarcoola.
Stage 1 operations at Tarcoola are expected to leverage the existing Central Gawler mill, which is fully permitted and operational. Barton Gold aims to fast-track this initial phase at Tarcoola to generate cash flow that can be reinvested into the larger Tunkillia project. As the company works toward securing the necessary permits for Tunkillia, Tarcoola’s Stage 1 operations could serve as a vital step in Barton Gold’s strategy for long-term growth and success.
Tarcoola Drilling Campaign: Focus on the Tolmer Discovery
In line with its focus on advancing its projects, Barton Gold recently commenced an initial drilling campaign at its Tarcoola project in November 2024. The drilling campaign is targeting the Tolmer discovery, which has been identified as a potentially high-grade gold-mineralized system.
The Tolmer prospect was confirmed in August 2024 with the receipt of high-grade assay results, revealing significant gold mineralization. Notable results included intercepts such as 4 meters at 24.6 grams per tonne (g/t), 9 meters at 3.92 g/t, and 14 meters at 1.41 g/t. These assay results have confirmed the presence of a quartz-sulphide veining system hosted within broader zones of alteration, indicating the potential for a substantial gold system.
The ongoing 2,000-meter drilling campaign at Tarcoola is designed to test the strike extent of these high-grade zones and to better understand the overall gold mineralization in the area. The campaign aims to map out a potential commercial pathway for Stage 1 operations at Tarcoola, which would utilize the existing fully-permitted mill at Central Gawler. With this infrastructure already in place, Barton Gold is well-positioned to quickly move into production at Tarcoola, providing an early cash flow stream to support its activities at Tunkillia.
Looking Ahead: Exciting Developments at Barton Gold
Barton Gold’s ongoing drilling campaigns at both Tunkillia and Tarcoola signal a promising future for the company and its projects. With the completion of its reverse circulation drilling program at Tunkillia, Barton is poised to upgrade its resource estimate and further optimize the economics of the project. The additional data from this campaign will be critical in supporting future development and enabling the company to move towards production.
At Tarcoola, the high-grade gold intersections at Tolmer have heightened expectations for the project, and the ongoing drilling campaign is expected to provide valuable insights into the potential scale of mineralization. The ability to fast-track Stage 1 operations at Tarcoola using the existing mill infrastructure further strengthens Barton Gold’s position in the highly competitive gold sector.
As Barton Gold advances its projects, the company remains focused on delivering shareholder value through a combination of strategic resource development, cost-effective project execution, and the efficient use of its existing assets. The coming months are expected to be an exciting period for the company, with key milestones including the completion of the optimized scoping study for Tunkillia and the continued exploration at Tarcoola.
Conclusion: Barton Gold’s Strategic Growth and Strong Project Pipeline
Barton Gold is making significant strides with its exploration and development efforts at both Tunkillia and Tarcoola. The completion of its reverse circulation drilling campaign at Tunkillia marks an important step toward upgrading its resource base and optimizing the economic potential of the project. Meanwhile, the promising results at Tarcoola, particularly from the Tolmer discovery, provide an additional avenue for the company to generate cash flow and support its long-term development goals.
With a clear strategy for advancing its projects, Barton Gold is well-positioned to capitalize on its exploration successes and further establish itself as a key player in the Australian gold sector. Investors will be closely watching the company’s progress in the coming months, with the expectation that Barton Gold’s efforts will continue to translate into significant growth and value creation.
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