Barton Gold (ASX: BGD) is progressing with the commercialization of its Tunkillia project in South Australia, initiating environmental studies as part of its pre-feasibility study and mining lease programs. The Tunkillia project is a key component of Barton’s strategy to revitalize the SA gold sector. An optimized scoping study (OSS) for Tunkillia projects operating free cash flow of $2.7 billion, a net present value of $1.4 billion, and an internal rate of return of 73%. The study also highlighted efficiencies extending the project’s life to approximately 10 years, with an eight-year mine life.
Barton has engaged the ERIAS Group to prepare an environmental scoping report, a crucial step in the mining lease approval process. This report will define the scope of environmental assessments for Tunkillia, as agreed upon with the SA Department for Energy and Mining. Managing Director Alexander Scanlon noted the OSS confirms a large-scale gold and silver operation with economies of scale. Barton forecasts the Tunkillia ‘starter pit’ to generate $825 million in operating free cash at a margin exceeding $4,000 per ounce during the initial 13 months of operations. The company aims to transition to producer status by 2026 and utilize cash flows to develop Tunkillia as a Stage 2 expansion project, targeting 150,000 ounces of gold per annum.
