Barton Gold Holdings (ASX: BGD) is ramping up its South Australian project development opportunities following recent successes. The company’s June quarter report highlighted a decision to accelerate feasibility and mining lease application programs at the Tunkillia gold mine. Barton Gold is focused on gold exploration and development within the Central Gawler Craton in South Australia. The company aims to become a significant Australian gold producer through both organic discoveries and strategic transactions.
The accelerated development schedule at Tunkillia will feature a dual-track approach to key approvals and development finance processes. This decision follows an optimised scoping study that identified the potential production of 942,000 ounces of gold and approximately 2Moz silver, with a payback period of under one year on a 10-year project, and $35 million in up-front capex savings. Barton has contracted ERIAS Group to prepare an environmental scoping report for the project.
In addition to Tunkillia, Barton focused on establishing a basis for a ‘Stage 1’ operation supported by its Central Gawler Mill (CGM) during the recent quarter. Barton believes that this infrastructure will help re-rate the company’s equity and credit profile to ‘producer’ status. The company has identified several potential gold mineralisation options near the CGM for use as lower-cost and lower-risk ‘Stage 1’ mill feed.
These options include the nearby Challenger gold project, where Barton recently unveiled an updated gold mineral resource estimate of 223,000oz, including approximately 81,000oz @ 3.75 grams per tonne gold in higher-grade pit materials. Managing director Alex Scanlon noted the exceptional progress on both the CGM ‘Stage 1’ and Tunkillia ‘Stage 2’ projects. With $9 million in cash, a track record of asset monetisation, and existing infrastructure, the company is well-positioned to continue building value.
