Barton Gold (ASX: BGD) (OTCQB: BGDFF) has reported another quarter of advanced activities at its Tunkillia, Challenger, and Tarcoola gold projects in South Australia.
The company completed 18,900 metres of ++Phase 1 upgrade drilling++ at Tunkillia’s high-value Stage 1 and Stage 2 open pits, ahead of schedule and under budget.
The high-grade assays infill the central S1 and northern S1 and S2 pit areas, which have been modelled to produce $1.3 billion in operating cash and payback development by a multiple of three in 2.5 years at assumed prices of $5,000 per ounce gold and $50/oz silver.
A definitive feasibility study is underway for Stage 1 of the brownfields Challenger project utilising the Central Gawler mill, with Barton targeting the start of works by year-end.
TSF1 Tailings Plant
Barton completed geotechnical drilling the historical TSF1 tailings storage facility during the period to facilitate fine-grinding test work and mine design.
The program included five sonic drill holes to recover materials for lab testing, 24 holes for cone penetration and further laboratory testing, and three holes each for vein shear and bulk density testing.
The company also conducted a ++high-resolution gravity survey++ over the northern part of the project area targeting near-mine repeats of high-grade quartz vein lodes.
SRK Consulting will now complete mining studies for the project, while Tetra Tech Coffey will manage the design of a storage lift for the operation and GPA Engineering will support engineering, metallurgy, and process plant design.
Tolmer Diamond Drilling
Diamond drilling in December at the Tolmer prospect confirmed the ++local structural model++ analogous to the eastern portion of historical Tarcoola goldfield, which hosts Barton’s Perseverance mine.
Barton drilled three holes for 595.3m in the ‘eastern gold zone’ to identify structural controls and guide future targeting.
Planning is underway for follow-up drilling in the ‘western silver zone’ discovered in March where multiple rounds of drilling identified broad, shallow mineralisation and delivered a best assay of 6m at 4,747 grams per tonne silver from 46m including 1m at 17,600g/t.
The company raised ++$15 million in a share placement++ and a further $660,000 in a share purchase plan during the quarter to advance its work programs.
Barton had $17.2m in cash at end December, and a further $4.5m in interest-bearing deposits posted as security for rehabilitation performance bond guarantee facilities.
