Barton Gold steadily progressing Tunkillia and Tarcoola projects ahead of 2025 scoping study

Barton Gold (ASX: BGD) (OTCQB: BGDFF) has reported solid progress at its Tunkillia and Tarcoola gold projects in South Australia for the three months to the end of September, ahead of an optimised scoping study planned for FY2025.

The company released an initial study in July based on a 5 million tonnes per annum bulk open-pit operation over a 6.4-year mine life, with average annual production of 130,000 ounces of gold and 311,000oz silver.

The results validated Barton’s strategy to target capital economies of scale, with the company having already identified multiple opportunities to improve process design, costs and mine life growth.

Perseverance upgrade

In July, Barton defined an upgraded resource estimate of approximately 20,000oz grading 2 grams per tonne of gold within 80 metres of the pit floor at the Perseverance mine within its Tarcoola project.

The results followed the completion of ten reverse circulation holes in March for a total of 882m, confirming additional shallow pit-floor gold zones east of the resource.

The mineralisation is believed to extend into areas below the estimate, which are not included in the resource and present new opportunities for growth.

Tolmer drilling

Drilling from May to July at the Tolmer gold discovery intersected mineralisation with a value above 1 gram-metre, as well as other high-grade results across the neighbouring School, Old Flame and Warburton targets.

Assays confirmed a new system comprising quartz sulphide veining hosted within broader zones of alteration, with intersections of 9m at 3.92g/t gold, 4m at 24.6g/t, 14m at 1.41g/t and 5m at 3.15g/t.

A follow-up program of aircore drilling will be carried out using a rig currently stationed at the Lake Labyrinth Shear Zone, north-east of the Perseverance mine.

Financial status

Barton generated $727,000 in revenue during the quarter from asset monetisation initiatives, interest income and the proceeds of government grants and tax incentives.

The company had $8.8 million in cash on hand at the end of September, plus a further $4.5m in interest-bearing deposits posted as security for rehabilitation performance bond guarantee facilities.

Expenditure of $1.6m was allocated to large-scale exploration and personnel costs, while a total of $165,000 was paid to related parties, including directors and their associates.