Barton Gold expands Tunkillia drilling ahead of resource update

South Australian explorer Barton Gold (ASX: BGD) is aiming to grow the 1 million ounces in gold resources at its Tunkillia project in the state’s central Gawler Craton.

Barton is the first company to invest significantly in the project area since before 2008, when the US dollar gold price was below $800 (and as low as $300 for much of the preceding decade).

The company is currently awaiting first assay results from its recently commenced 12,000-metre reverse circulation (RC) drilling program, which was last month further expanded to include up to 2,000m of diamond drilling.

The program precedes an update to Tunkillia’s mineral resource estimate planned for next March. The project’s total mineralised footprint has grown considerably over the past year through the discovery of three new gold zones: 223 North, Area 191 and Area 51, the latter of particular note given that it represents about a 4km step out of Tunkillia’s mineral footprint.

The newly announced diamond drilling will target the depth extensions of the 223 deposit and the new 500m-long Area 51 gold zone.

Significant increase expected for next year’s resources estimate

Barton managing director Alex Scanlon said the additional diamond drilling is expected to generate significant further information for the upcoming mineral resource estimate and structural modelling.

“We are aiming to complete this drilling around year end, the results of which will inform a mineral resource estimate (MRE) update based on more than 30,000m of drilling completed since our June 2021 IPO.”

In addition to the first RC assays results due shortly, the company is anticipating the balance of RC and diamond drilling assays to be released during the balance of December, January, February and March, Mr Scanlon added.

Resources growth platform

In the last month, Barton has been showcasing the potential of its gold assets to investors at conferences across Europe, the United Kingdom and in its home state of South Australia.

The explorer holds 5,100 square kilometres of tenements and joint venture rights in the central Gawler Craton, including 1.1Moz of JORC 2012 gold resources within its Tunkillia and Tarcoola projects and ownership of the region’s only gold mill at Central Gawler.

Barton describes the southern hub of its assets, comprising Tunkillia and Tarcoola, as a resources growth platform of about 3,000km of underexplored prime ground with more than 100km shear systems.

Development pathway

The company has set out a clear development pathway to establish a preliminary resource base of more than 2Moz of gold to underpin South Australia’s largest independent gold operation with a target of 150,000oz per annum within five years.

To reduce development risk and costs, the Barton’s development pathway has been separated into two phases: the first stage entails processing mineralisation from its Tarcoola project through its existing Central Gawler mill (last operated during 2017 and 2018).

The second stage would see installation of a second larger-scale mill at the Tunkillia project.

Once in operation, a new Tunkillia mill would service both the Tarcoola and Tunkillia projects.

The stage two mill would combine the large-scale baseload mineralisation from Tunkillia with higher-grade ore from Tarcoola, which is only about 70km away.

This mill would then free up the Central Gawler plant for Barton to consider additional processing or toll milling of nearby joint venture and third party gold deposits.

Barton’s pathway to realising its stage two development plans, include growing Tunkillia resources throughout 2023 and 2024, converting Tarcoola priority targets to new mineralisation in 2023, and the completion of studies and mining lease applications in 2024 and 2025.

Stage one, based on existing fully permitted mining leases, proven metallurgy, simple logistics, and Barton’s own mill, can in theory commence whenever Barton decides to push “go”.