Barton Gold completes $5m concentrate sale, boosting development funds
Barton Gold (ASX: BGD) (OTCQB: BGDFF), one of South Australia’s most active explorers, has received the final payment of $775,000 to complete its $5 million sale of gold concentrates recovered from a December 2022 clean-out and preservation program at the company’s Central Gawler Mill.
A total of approximately 1,425 gold ounces has now been sold via a treatment and refining contract, adding valuable cash to Barton’s development funds.
Barton estimates the total costs of recovering and processing these materials to be approximately $800,000, representing a total net profit margin of approximately $2,950 per ounce sold.
‘Competitive terms’
“We are very pleased to have completed this gold sale on very competitive terms for the June 2024 gold market,” managing director Alex Scanlon said.
“Barton continues to differentiate itself not only via the cost-efficient advancement of its development projects but also a track record of asset monetisation which has now generated over $10m in non-dilutive cash.”
“Since our June 2021 IPO, these proceeds have covered 100% of our corporate overhead costs and extended our cost-efficient exploration programs.”
“This has minimised the equity dilution which would otherwise have been required to complete such extensive works and preserved considerable value for Barton Gold shareholders.”
Tunkillia growth
The news of the gold sales comes just one day after the company announced the completion of its latest Tunkillia project gold growth drilling program.
The program targeted parallel lodes and depth extensions in areas where gold mineralisation has previously been intersected but not yet included in the MRE.
Barton is targeting Tunkillia resource growth and an increase in the overall project economics and life of mine through the optimisation of key cost drivers.
Tarcoola discoveries
At the same time, the company is driving towards commercialisation at the nearby Tarcoola gold project.
In November, Barton accelerated its two gold development projects in South Australia with the commencement of a new drilling program following up the promising Tolmer discovery.
Tolmer was confirmed in August with the receipt of high-grade assays verifying a newly interpreted gold-mineralised system comprising quartz-sulphide veining hosted within broader zones of alteration.
The Tolmer find validated Barton’s first significant test of a new Tarcoola structural model, demonstrating the project’s broader potential to host multiple shallow, high-grade gold zones.