Barton Gold (ASX: BGD) has initiated a baseline water monitoring program at its Tunkillia gold project in South Australia. This program is a crucial step in the feasibility and approvals process, providing essential data needed before mining and production can begin. Barton Gold is an Australian gold exploration company focused on the discovery and development of economic gold deposits in South Australia. The company aims to create shareholder value through responsible exploration and development practices.
Managing director Alexander Scanlon stated that the company is focused on these long-lead items, aiming to submit a mining lease application before the end of next year. Data from the water monitoring program will be compared with historical information from past analyses at Tunkillia. This initiative follows the release of the Tunkillia optimised scoping study in May, which projected substantial financial outcomes, including $2.7 billion in operating free cash flow, a $1.4 billion net present value, and a 73% internal rate of return.
The scoping study also indicated significant efficiencies and favourable commodity prices could lead to a total payback for the project development within 13 months of start-up. These efficiencies have extended the project’s total life, including construction, to 10 years, up from eight in the initial scoping study, and have accelerated higher-value mill feed over an eight-year life-of-mine. Barton anticipates that Tunkillia will process 30.7 million tonnes of material to produce 833,000 ounces of gold and 1.9 million ounces of silver.
Barton is also advancing studies for Stage 1 operations to leverage the historic Central Gawler Mill facility as it moves towards becoming a gold producer. This phased approach is expected to provide a lower-cost and lower-risk path to an annual gold production target of 150,000 ounces. Tunkillia, along with the Tarcoola project, is central to Barton’s development strategy, aimed at revitalising South Australia’s gold sector.
