Barton Gold’s Tunkillia Project: Aiming for Ore Reserve Conversion by 2026
Introduction
Barton Gold Holdings Limited (ASX: BGD) is set to make significant strides with its Tunkillia Gold Project in South Australia, aiming to convert its JORC Mineral Resources into Ore Reserves by the end of 2026. This initiative is supported by the results of an Optimised Scoping Study (OSS) released in May 2025, which showcases the project’s robust potential.
Key Highlights of the Tunkillia Gold Project
Strong Production Forecast
The Tunkillia project is projected to deliver impressive annual outputs:
- Gold Production: Approximately 120,000 ounces
- Silver Production: Approximately 250,000 ounces
Financial Metrics that Matter
The OSS outlines compelling financial metrics:
- Total Life of Mine (LoM) Operating Cash: Approximately A$2.7 billion (unlevered, pre-tax)
- Net Present Value (NPV @ 7.5%): Approximately A$1.4 billion (unlevered, pre-tax)
- Internal Rate of Return (IRR): Approximately 73.2% (unlevered, pre-tax)
- Payback Period: Less than 0.8 years (unlevered, pre-tax)
High-Value Starter Pits
Initial drilling will focus on optimizing the high-value ‘Starter Pits,’ which are expected to yield approximately 365,000 ounces of gold and generate A$1.3 billion in cash within the first two years. This remarkable return on investment is anticipated to pay back development costs more than threefold.
Advancing Development with Upgrade Drilling
First Phase of Drilling
Barton has begun a crucial ~18,000-meter Reverse Circulation (RC) drilling program to convert its Stage 1 and Stage 2 open pit materials into JORC (2012) ‘Measured’ and ‘Indicated’ categories. This initial phase aims to:
- Convert all Stage 1 and Stage 2 pit materials to JORC ‘Indicated’ category.
- Convert a high-value subset of Stage 1 pit materials to JORC ‘Measured’ category.
Future Drilling Plans
Looking ahead, a second phase of drilling involving both RC and Diamond Drilling (DD) is scheduled from March to June 2026. This phase will:
- Target the conversion of all Tunkillia OSS mineralization to JORC ‘Indicated’ category.
- Expand the geotechnical and metallurgical databases for further pit design and recovery modeling.
Remarks from Leadership
Alex Scanlon, Managing Director of Barton, emphasized the project’s financial potential:
“The Tunkillia OSS demonstrated the financial and capital leverage available to large-scale bulk processing operations, with the major advantage of a higher-grade ‘Starter Pit’ that can pay back development costs twofold in the first year.”
Scanlon also highlighted that interest from multiple prospective development and finance partners is accelerating progress on upgrade drilling, positioning Barton for a successful transition from resources to reserves.
Conclusion
Barton Gold’s ambition for the Tunkillia Gold Project is clearly outlined as the company targets significant developments within a tight timeframe. With strong production forecasts and favorable financial metrics, Tunkillia stands to become a key player in the gold and silver market by generating substantial cash flow and positioning itself for future growth.
For more updates on Barton Gold’s initiatives and project developments, visit Barton Gold’s Official Website.
About Barton Gold
Barton Gold is a publicly listed gold developer with plans for future production of 150,000 ounces per annum, focusing on 2.2 million ounces of JORC Mineral Resources. The company owns the only gold mill in the Gawler Craton and operates multiple projects, ensuring a diversified portfolio in the gold mining sector.
Forward-Looking Statements
This article contains forward-looking statements about Barton Gold and its projects. These statements involve risks and uncertainties that may cause actual results to differ materially. Readers are encouraged to consult the company’s official reports and disclosures for the most current information.
Feel free to use this article as a comprehensive resource for understanding the current status and future outlook of Barton Gold’s Tunkillia Gold Project.
