Depth Extensions at Tunkillia Could Reshape Project Economics and Scale

Depth Extensions Confirmed at 223 Deposit

Barton Gold Holdings Limited (ASX: BGD) has announced compelling new drilling results from its flagship Tunkillia Gold Project in South Australia, confirming significant depth extensions to the mineralisation at the 223 Deposit. The recent reverse circulation (RC) drilling program intersected broad zones of gold mineralisation 50 to 100 metres below the pit floor modelled in the July 2024 Initial Scoping Study (ISS), suggesting the potential for a deeper and larger open pit operation.

Notable intersections include 10 metres at 2.72 grams per tonne (g/t) gold from 144 metres and 20 metres at 0.93 g/t gold from 339 metres depth, both below the previously optimised pit shell. These results reinforce the prospect of expanding the Mineral Resource Estimate (MRE) beyond the current 1.50 million ounces (Moz) of gold reported in March 2024.

Optimised Scoping Study Targets Value Enhancement

Building on the ISS, Barton Gold is progressing an Optimised Scoping Study (OSS) that incorporates the latest drilling data alongside detailed technical reviews of comminution design, energy consumption, mine scheduling, and capital and operating cost structures. Managing Director Alexander Scanlon emphasised the company’s focus on refining project economics and operational efficiencies to enhance long-term value.

The OSS, expected to complete in the first half of 2025, aims to deliver a more robust and cost-effective mine plan, potentially increasing throughput rates and optimising pit designs. Early indications suggest that softer, higher-grade oxide and transitional mineralisation in the upper zones could improve milling rates during initial production years.

Strategic Positioning in South Australia’s Gawler Craton

The Tunkillia Project, located within the prolific Gawler Craton, is South Australia’s largest undeveloped gold-only project. Its proximity to major mining operations such as BHP’s Prominent Hill and Olympic Dam, combined with existing infrastructure including a regional gold mill, positions Barton Gold favourably for advancing towards production.

The project’s 1.5Moz Au resource, spread across multiple deposits including the newly added Area 51, underpins a potential large-scale operation targeting approximately 130,000 ounces of gold annually at a competitive all-in sustaining cost (AISC) of around A$1,917 per ounce, as per the March 2024 ISS.

Next Steps and Market Implications

With the updated drilling results supporting resource growth and deeper pit potential, Barton Gold is now undertaking a comprehensive remodelling of the Tunkillia MRE. This will integrate the new data and inform the ongoing OSS, which will guide the scope and budget for an expedited pre-feasibility study (PFS).

Investors and analysts will be watching closely for the OSS outcomes, which could materially influence the project’s valuation and development timeline. The confirmation of depth extensions not only enhances the resource base but also signals potential for improved project scale and economics.