Barton Gold Holdings Limited has announced an expansion of its Phase 2 upgrade drilling program at the Tunkillia Gold Project, located in South Australia. This strategic move aims to enhance the project’s resource estimates and improve its overall economic viability.
Initially, the Phase 2 drilling was set to cover 30,000 meters; however, it has now been expanded to approximately 40,000 meters. This increase follows the completion of 18,900 meters of Phase 1 upgrade drilling in November 2025. Early analysis of the drilling results suggests promising potential in high-value 'Starter' pit areas and possible extensions to existing mineralization within the project.
The May 2025 Optimised Scoping Study (OSS) provides a snapshot of the Tunkillia project's economic prospects. It estimates a total operating cash flow of around A$2.7 billion (unlevered, pre-tax) and a net present value (NPV) of approximately A$1.4 billion at a discount rate of 7.5%. The project’s internal rate of return (IRR) has been estimated at around 73.2%, with an initial payback period of just under one year.
Barton Gold aims to complete a Pre-feasibility Study (PFS) by the end of 2026. The results from this study will be critical in guiding a Mining Lease application and future financing discussions set for the following year. Continued drilling activities are focused on increasing both the quantity and grade of mineral resources identified within the Tunkillia open pit outlines.
Alexander Scanlon, Barton’s Managing Director, emphasized the importance of enhancing the mineral profile of Tunkillia. He stated that the financial metrics outlined in the OSS underscore the project's robustness, particularly in light of current gold and silver prices. This ongoing drilling is expected to further enhance the project's economic metrics by augmenting the resource base within the optimal pit configurations.
The expansion of the Tunkillia Phase 2 drilling programme highlights Barton Gold's commitment to enhancing its resource estimates and improving the overall project economics. With an additional 10,500m being added to the drilling, the potential for increased high-grade mineralisation may further boost the project's value.
With an estimated NPV of approximately A$1.4 billion, Tunkillia's valuation appears robust in comparison to many industry benchmarks. This financial projection suggests strong economic viability, particularly under the current commodity price environment.
Tunkillia is projected to generate around 120,000 ounces of gold and 250,000 ounces of silver annually. Such production levels could significantly enhance the company’s revenue streams, especially if market conditions remain favourable.
The Tunkillia Gold Project demonstrates a compelling internal rate of return (IRR) of approximately 73.2% and a payback period of around 0.8 years. These metrics indicate a highly profitable venture leveraging current gold and silver prices.
As the drilling progresses, any positive results indicating higher mineral grades or extensions of the deposit could lead to resource upgrades and potentially attract further investment. This strategy aligns with Barton’s goal to enhance its production capabilities.
Completion of the Pre-Feasibility Study is crucial as it will provide detailed insights into the project's viability and inform subsequent financing and development efforts. A positive PFS could unlock new growth opportunities for Barton Gold.
Tunkillia's geological characteristics, including the presence of high-grade mineralisation in 'Starter' pits, suggest substantial resource potential. These features are likely to enhance both immediate production prospects and long-term exploration opportunities.
Following the expansion, Barton Gold aims to complete the PFS by the end of 2026, which will guide future operations and financing strategies. Successful completion of these phases would be pivotal in advancing the Tunkillia project further.