Barton Gold Expands Tunkillia Phase 2 Upgrade Drilling Campaign to 40,000m

Barton Gold (ASX: BGD) (OTCQB: BGDFF) has added 10,500 metres to a Phase 2 upgrade drilling campaign at its Tunkillia gold project in South Australia.

The campaign kicked off in March with a planned 29,500m following Phase 1 reverse circulation drilling of 18,900m in November to infill the S1 and S2 high-value starter-pit areas.

That Phase 1 campaign returned broad, high-grade intersections for conversion to Measured and Indicated resource categories.

Best assays reported were 23m at 2.25 grams per tonne gold from 62m including 2m at 5.45g/t from 69m, 1m at 7.5g/t from 75m and 1m at 8.9g/t from 81m, and 22m at 2.43g/t gold from 100m including 1m at 17.6g/t from 107m.

RC Expansion Plans

Analysis of first Phase 2 assays from Tunkillia’s Area 51 optimised open pit identified potential to extend the project’s mineralisation, increase the mineral resource estimate, and increase the grade profile and classification of the S1 and S2 starter pits.

Barton has since announced plans to expand the reverse circulation (RC) component of the campaign to a total 40,000m to capitalise on these possibilities.

All other work programs remain on track for target completion of a pre-feasibility study (PFS) before year end.

PFS results will inform a mining lease application and project finance discussions scheduled for next year.

Robust Tunkillia Economics

Managing director Alexander Scanlon said Tunkillia had already demonstrated robust economics driven by the higher-grade starter pits.

“With recent Phase 1 upgrade drilling confirming the mineralisation behind these economics and ongoing Phase 2 work identifying new extensions and higher-grade mineralisation, we are excited to expand drilling to potentially increase the quantum and grade of resources within Tunkillia’s optimised open pit outlines,” he said.

“This could materially enhance Tunkillia’s robust economics by adding new gold and silver ounces within the existing pit outlines, further reducing early cash costs per ounce and boosting the project’s significant early cash flow profile.”

The S1 and S2 starter pits have been modelled to produce an operating profit of $1.3 billion during the first 2.5 years of operation.