Can Barton Gold’s Tunkillia Deliver on Promised Early $1.3bn Operating Profit?

Strong Early Results Bolster Tunkillia’s Potential

Barton Gold Holdings Limited has released new assay results from its ongoing drilling program at the Tunkillia Gold Project in South Australia, highlighting multiple shallow, high-grade gold intersections in the northern portion of the S1 'Starter Pit'. These findings not only confirm the presence of valuable mineralisation close to the surface but also suggest the existence of vertically oriented structures that could refine existing geological models.

The company’s Managing Director, Alexander Scanlon, emphasised the significance of these results, noting that the combined S1 and S2 pits are modelled to produce approximately 365,000 ounces of gold and 923,000 ounces of silver, generating an operating free cash flow of $1.3 billion over the first 2.5 years of production. This robust cash flow is projected to repay the entire development cost more than three times within that period, underscoring the project's strong economic fundamentals.

Ongoing Drilling and Resource Upgrade Plans

The recent assays form part of Barton Gold’s Phase 1 upgrade drilling program, which aims to infill and better define mineralisation within the S1 and S2 pits. The company expects to receive the remaining assay results by January 2026. These results will feed into an updated JORC (2012) Mineral Resource Estimate scheduled for release in March 2026, which is anticipated to upgrade the classification of mineral resources to the more certain 'Measured' and 'Indicated' categories.

Looking ahead, Barton Gold has outlined plans for a Phase 2 drilling campaign from March to June 2026. This next phase will focus on converting additional open pit mineralisation to the Indicated category and will include diamond drilling to gather geotechnical and metallurgical data. These efforts are critical to advancing pit optimisation and feasibility studies, paving the way for potential development decisions.

Context Within Barton Gold’s Portfolio

The Tunkillia project is a key asset within Barton Gold’s portfolio, which also includes the Challenger, Tarcoola, and Wudinna gold projects in South Australia. With a combined JORC Mineral Resource of over 2.2 million ounces of gold and 3.1 million ounces of silver, Barton is positioning itself as a significant emerging gold producer targeting 150,000 ounces per annum.

The recent drilling results at Tunkillia not only enhance the project's resource profile but also de-risk the early production profile by confirming high-grade mineralisation at shallow depths. This is particularly important for the economics of open pit mining, where early cash flow generation can significantly impact project viability and investor confidence.

Technical Rigor and Quality Assurance

Barton Gold has maintained rigorous sampling and assay protocols, employing reverse circulation drilling with detailed quality control measures including field duplicates, certified reference materials, and independent laboratory analyses by Bureau Veritas. The company has addressed minor assay contamination issues promptly, ensuring data integrity. These practices support the credibility of the reported results and the forthcoming resource update.