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Barton Gold launches environmental studies at Tunkillia as transition to producer accelerates

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By Colin Hay - 
Barton Gold ASX BGD Tunkillia Scoping environmental PFS
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Barton Gold’s (ASX: BGD) (OTCQB: BGDFF) major 2025 commercialisation focus in accelerating its large-scale Tunkillia project in South Australia is underway with the commencement of environmental studies.

The Tunkillia project forms part of Barton’s two-pronged development focus in 2025 as it leads the re-emergence of the SA gold sector.

The critical Tunkillia environmental scoping work has kicked off the project’s pre-feasibility study and mining lease (ML) programs.

Optimised scoping study

Barton’s acceleration of long-lead feasibility work programs for Tunkillia follows the recent publication of the project’s optimised scoping study (OSS).

The OSS estimated Tunkillia can provide operating free cash flow of $2.7 billion, net present value of $1.4b and an internal rate of return of 73%.

The study also found that material efficiencies had extended the project’s total life (including construction) to approximately 10 years and accelerated higher-value mill feed over an eight-year life-of-mine.

Environmental analysis

Barton has brought in the ERIAS Group to prepare an environmental ‘scoping report’, the first step in the ML approval process.

The report will set out the scope of works for Tunkillia environmental assessments as agreed upon by the SA Department for Energy and Mining.

“Tunkillia’s new OSS has confirmed a large-scale, competitive gold and silver operation with significant economies of scale offering strong financial and capital leverage to a rapidly evolving gold market,” managing director Alexander Scanlon said.

“We are accelerating Tunkillia in parallel with studies for Stage 1 operations leveraging our Central Gawler Mill,” Mr Scanlon said.

Operating free cash

Barton has forecast the ‘starter pit’ at Tunkillia will produce $825 million of operating free cash at a margin of more than $4,000 per ounce during the first 13 months of operations.

Mr Scanlon said this puts Barton in a very strong position to advance project studies, approvals, financing and development.

“Our goal is to transition to producer from 2026, generate cash flows and then use these to develop Tunkillia as our Stage 2 expansion project for a lower-cost, lower-risk and lower-dilution pathway to 150,000 ounces per annum gold.”

“We are wasting no time in doing so and are well positioned with a $12m track record of continuing asset monetisation, a low net cash burn rate and $7m cash on hand.”