Tolu Minerals Boosts Processing Capacity to 20t/hr and Cuts Fuel Costs by 82%
Tolu Minerals reports significant progress at its Tolukuma Gold Mine, unveiling infrastructure upgrades and a $14.3 million exploration program aimed at boosting production and extending mine life.
- Hydropower station rebuild to deliver 3MW by late 2026, cutting energy costs by 75%
- Processing plant capacity expanded from 6t/hr to 20t/hr to leverage strong gold prices
- Road access improvements reduce fuel transport costs by up to 82%
- $14.3 million exploration campaign underway targeting resource expansion and new discoveries
- Environmental compliance maintained with ongoing monitoring and no significant impacts
Infrastructure Upgrades Set to Transform Operations
Tolu Minerals Limited has delivered a comprehensive update on its flagship Tolukuma Gold Mine (TGM) in Papua New Guinea, highlighting a series of infrastructure projects designed to underpin a robust production ramp-up. Central to this is the refurbishment of the hydropower station, expected to supply approximately 3MW of power by the second half of 2026. This upgrade promises to reduce the mine’s power costs by around 75%, a critical factor in improving operational economics.
Complementing the power upgrade, the company has expanded its processing plant capacity from an initial 6 tonnes per hour to about 20 tonnes per hour. This enhancement includes additional equipment such as screens, cyclones, and a larger scrubber, aimed at improving gold liberation and recovery rates. The increased throughput aligns with current gold prices exceeding USD 3,000 per ounce, positioning Tolu to capitalise on favourable market conditions.
Cost Reductions Through Logistics and Mining Fleet Enhancements
Significant progress has been made on road infrastructure, with the new access road connecting to historic routes and bringing the mine within sight. This development has already enabled fuel deliveries by road, slashing transport costs from A$3.81 to A$0.68 per litre, an 82% reduction. The shift away from helicopter transport is expected to further decrease logistics expenses dramatically.
On-site, the commissioning of a primary underground mining fleet, including load haul dump vehicles and haul trucks, marks a milestone in operational readiness. Mine infrastructure such as electrical reticulation, ventilation, and compressed air systems are nearing completion, supporting accelerated production ramp-up plans.
Exploration Ambitions Backed by $14.3 Million Program
Tolu has launched an ambitious AUD 14.3 million exploration and resource growth program running through to October 2026. This campaign involves deploying five new diamond drill rigs and a dedicated team of geologists to expand the existing Mineral Resource Estimate (MRE) and convert resources to reserves where possible. Focus areas include near-mine targets such as the Zine, 120, Kimono, and Fundoot veins, as well as regional prospects across the broader Tolukuma structural corridor.
Recent airborne magneto-telluric surveys and lineament analyses have identified multiple conductive vein targets and porphyry systems, notably at the Mt Penck and Ipi River tenements. These findings underpin the company’s strategy to unlock additional gold and copper resources, potentially extending the mine’s life and production profile.
Environmental Stewardship and Community Engagement
Tolu maintains a strong commitment to environmental compliance, with ongoing water quality monitoring confirming no significant impacts from operations. The company has adopted a zero tailings discharge policy, employing geotextile tubes for tailings drying and storage underground. A feasibility study for a long-term tailings storage facility is underway, reflecting a forward-looking approach to sustainable mine management.
Community engagement remains a priority, with formalised monthly meetings with the Tolukuma Landowner Association and initiatives aimed at sustainable agricultural development. These efforts align with Papua New Guinea’s National REDD+ Strategy, supporting conservation and emission reduction goals.
Financial Position and Outlook
During the quarter, Tolu reported exploration and evaluation expenditure of $6.8 million and maintained a strong cash position of A$21.6 million. While substantive mining production activities remain limited as infrastructure upgrades continue, the company’s strategic investments and operational milestones set the stage for a significant production ramp-up in the coming years.
Leadership appointments, including a new General Manager and Mill Operations Manager, bolster the company’s capacity to execute its Destination 2026 growth plan. With key infrastructure projects advancing and exploration programs underway, Tolu is positioning itself to capitalise on strong metals prices and unlock the full potential of its extensive tenement portfolio.
Bottom Line?
Tolu Minerals is laying the groundwork for a transformative production phase at Tolukuma, but upcoming drilling results and permit approvals will be critical to sustaining momentum.
Questions in the middle?
- How will the expanded processing capacity impact gold output timelines and costs?
- What are the prospects and timelines for securing renewals of key exploration licenses?
- How might environmental permit feedback and tailings facility approvals influence project schedules?
