Barton Gold’s Central Gawler mill clean-up continues to pay off with latest $4.25m sale

South Australian miner Barton Gold (ASX: BGD) (OTCQB: BGDFF) has continued to benefit from its preservation program at the historic Central Gawler mill, recently announcing the sale of an additional $4.25 million worth of gold.

Initiated in early 2022, the clean-up efforts at the Central Gawler Mill facility have provided significant capital, aiding Barton’s efforts to commercialise the historic Tarcoola and Tunkillia gold projects.

The latest transaction involved the sale of approximately 1,400 ounces of gold processed through a treatment and refining contract for the company’s gold concentrate materials.

Provisional payment

Barton secured a provisional payment representing 90% of the gold’s value.

The remaining sum will be settled through a ‘balancing payment’, subject to a set of predetermined conditions.

Managing director Alex Scanlon expressed his enthusiasm for the sale, noting the competitive terms achieved.

“This outcome reflects both a great deal of hard work by our management team and its broader commercial skill,” Mr Scanlon said.

He also highlighted the positive impact of such transactions on shareholder value, with the company’s asset monetisation efforts since its June 2021 IPO generating over $10m in non-dilutive cash, covering all corporate costs and bolstering its financial position.

Tarcoola and Tunkillia progress

Capitalising on the funds from the mill cleanout, Barton has advanced its activities at the Tarcoola and Tunkillia gold projects.

The company recently resumed a 7,000-metre drilling program at Tarcoola, targeting new structural zones near the historic Perseverance mine.

This drilling is part of a broader strategy to explore near-mine and regional targets, aiming to expand the potential of Tarcoola, which was a significant hard rock gold producer in the early 1900s.

At the nearby Tunkillia project, Barton has engaged GR Engineering Services and Mining Associates for detailed scoping studies.

These studies will cover mine design, production scheduling, process plant details, tailings storage, equipment, personnel and supporting infrastructure.

Following these studies, Barton plans to review all technical data to establish the work needed to complete a pre-feasibility study.