Challenger Project’s 313,000oz Gold Resource Drives Barton’s 2026 Production Target

Barton Gold Advances Towards Production

Barton Gold Holdings Limited has taken a significant step forward in its development strategy by commencing a Definitive Feasibility Study (DFS) for Stage 1 production at the Challenger Gold Project in South Australia. This move signals the company’s intent to transition from exploration and development to operational gold production, leveraging the fully permitted Central Gawler Mill (CGM) adjacent to its brownfield mines.

The Challenger project boasts an updated JORC Mineral Resource Estimate (MRE) of 313,000 ounces of gold, including a substantial portion of high-grade fresh ore accessible via existing open pit and underground workings. The company plans a phased approach, initially focusing on reprocessing historical tailings from the Tailings Storage Facility 1 (TSF1), which contains coarse, higher-grade gold material, before progressing to mining fresh ore deposits.

Strategic Use of Existing Infrastructure

Central to Barton Gold’s strategy is the utilisation of the Central Gawler Mill, a fully permitted facility that last operated in 2018 and is now targeted for recommissioning by the end of 2026. Preliminary engineering estimates peg the cost of reinstating the mill to its original 600,000 tonnes per annum capacity at approximately A$26 million, a relatively modest capital outlay given the scale of the resource and potential production.

The DFS, led by Altris Pty Ltd with support from SRK Consulting, Tetra Tech Coffey, and GPA Engineering, is expected to be completed by March 2026. This study will refine the technical and economic parameters of the project, including tailings reprocessing and fresh ore mining, while also addressing infrastructure upgrades and environmental considerations.

Phased Production Approach and Market Timing

Barton’s phased production plan begins with the reprocessing of tailings from TSF1, which contains an estimated 56,000 ounces of gold at grades between 0.6 and 1.0 grams per tonne. Metallurgical testwork indicates promising recovery rates through fine grinding techniques, potentially unlocking value from material previously considered waste. This low-risk, low-cost first phase aims to generate early cash flow and establish operational momentum.

Following successful tailings reprocessing, Phase 2 will introduce higher-grade fresh ore, averaging around 3 grams per tonne, from the Challenger open pit and underground deposits. This staged approach not only mitigates initial capital risk but also positions Barton Gold to capitalize on the current elevated gold price environment, which Managing Director Alexander Scanlon described as "never more attractive."

Financing and Growth Prospects

With credit finance discussions already underway, Barton is actively seeking to secure funding to support the project’s development. The company envisions that transitioning to a producer profile will enhance its equity valuation and provide free cash flows to fund further regional growth, particularly at its Tunkillia Gold Project, which holds significant additional resources.

As the DFS progresses, investors and analysts will be watching closely for updates on project economics, capital requirements, and timelines. The success of the Challenger project could mark a pivotal moment for Barton Gold, transforming it from a developer into a producing gold company with a foothold in one of Australia’s promising gold regions.