Barton Gold (ASX: BGD) (OTCQB: BGDFF) is anticipated to experience substantial share price growth, fueled by accelerated drilling at its Tarcoola project in South Australia. A recent research report by Edison Investment Research values Barton shares between $1.61 and $2.53, suggesting a potential upside to $4.00. Edison emphasizes the significance of Barton’s Central Gawler Mill, which offers a streamlined and cost-effective route for a ‘Stage 1’ development. Barton aims to resume operations at Tunkillia by 2026. The report forecasts a re-rating of Barton as a ‘producer,’ with cash flow supporting Tunkillia’s development and the company’s objective to produce 150,000 ounces of gold annually.
The updated scoping study revealed positive outcomes, including an 8% reduction in capital expenditure and lower unit processing costs for both oxide (24.4%) and sulphide (18.0%) materials. The study also extended the operation’s lifespan from 7.7 to 10 years, resulting in a 13.1% increase in estimated payable gold production. Barton is initiating a new set of activities at the Tarcoola gold project, with a focus on the Tolmer ‘silver zone’ discovery. Recent reverse circulation drilling assays at Tolmer have identified additional shallow, high-grade mineralization in both the ‘western silver’ and ‘eastern gold’ zones, expanding their respective strikes. The company plans an initial program of 2,500 metres high-grade silver and gold drilling, commencing next week at Tolmer.
