Barton Gold Holdings (ASX: BGD) has confirmed capital costs of $26 million to upgrade and fully reinstate its Central Gawler Mill in South Australia. The upgrade aims to restore the mill to its original designed capacity of 600,000 tonnes per annum of fresh ore, translating to a processing cost of $44.50 per tonne. Barton Gold is an Australian gold exploration company focused on the Gawler Craton in South Australia. The company is dedicated to discovering and developing high-value gold deposits in the region.
The proposed work includes enhancements to mill motors, automation, and the addition of a new pre-leach thickener to improve overall efficiency. Barton Gold engaged engineering consultant Ammjohn Solutions earlier this year to assess the mill’s restart potential, focusing on leveraging existing infrastructure and identifying potential improvements to enhance gold recovery and operational efficiency.
Managing director Alexander Scanlon highlighted the significant cost advantages of reinstating the existing mill compared to constructing a new one or relying on third-party toll milling services. He noted that the existing infrastructure offers more financing options, reducing the need for third-party toll milling and preserving profitability. Tailings reprocessing presents an additional opportunity to defer capital costs, potentially reducing upfront capital requirements for the first 24 months of operation.
The Central Gawler Mill, originally built in 2002 and expanded in 2010, operated until it was placed on care and maintenance eight years later. During its operational years, the mill produced 1.2 million ounces of gold with average recoveries between 94% and 95%. The mill analysis follows an updated mineral resource estimate (MRE) for the Challenger gold project, located adjacent to the mill, with a new estimate of 223,000 ounces of gold.
