First assays from Phase 2 upgrade drilling at Barton Gold’s (ASX: BGD) (OTCQB: BGDFF) Tunkillia project in South Australia have indicated potential resource growth for the Area 51 optimised open pit.
The 30,000-metre reverse circulation campaign delivered broad, high-grade assays from the north and south ends of the currently modelled pit.
This indicates significant potential for further extensions of higher-value mineralisation and extensions to the planned mine life.
Highlights were 52m at 0.95 grams per tonne gold from 101m including 2m at 2.84g/t from 117m, 40m at 1.64g/t gold from 155m including 2m at 3.83g/t from 164m, along with 46m at 1.13g/t gold from 137m including 5m at 2.34g/t from 172m, and 43m at 1.82g/t gold from 39m including 8m at 3.79g/t from 42m, 2m at 4.14g/t from 67m and 2m at 6.65g/t from 71m.
Higher-Value Mineralisation
Managing director Alexander Scanlon said the new assays build on high-grade mineralisation identified in Tunkillia’s Phase 1 campaign.
“Phase 1 drilling already confirmed the higher-grade mineralisation driving Tunkillia’s exceptional economics, where its ‘Starter Pit’ can repay development 2x over in the first year alone,” he said.
“We are pleased to report that Area 51 has returned higher grades than anticipated, indicating potentially higher-value mineralisation, resource growth, and extensions to the optimised open pit and mine life.”
The latest results will be incorporated into a Tunkillia pre-feasibility study (PFS) scheduled for completion before year end to support a mining lease application and financing discussions.
Upgrade and Infill Drilling
Phase 1 upgrade drilling at Tunkillia infilled the high-value S1 and S2 pit areas, modelled to produce $1.3 billion operating profit during the first 2.5 years of operation at an assumed price of $5,000 per ounce gold and $50/oz silver.
Phase 2 work will see infill drilling at the S3 and Area 223 North open pits as well as Area 51, which has been modelled in an optimised scoping study to contain approximately 163,000oz gold.
The Phase 2 campaign is due to be completed this month.
“Tunkillia is on track for dual gold and silver resource upgrades, conversion to ore reserves, and completion of a PFS and a mining lease application—all in the context of a considerably more favourable gold and silver price environment,” Mr Scanlon added.
