Barton Gold (ASX: BGD) (OTCQB: BGDFF) will present the results of a preliminary scoping study for the Tunkillia gold project in South Australia during a live webinar next week hosted by Small Caps Australia.
Managing director Alex Scanlon will share a corporate presentation detailing a prospective 5 million tonnes per annum bulk open-pit mining and processing project with an initial 6.4 year life-of-mine to produce 833,000 ounces gold and 1.99Moz silver.
The mine’s average annual production is expected to be approximately 130,000oz gold and 311,000oz silver with an all-in sustaining cost (AISC) of $1,917/oz gold and an average operating cashflow of $1,626/oz gold (net of silver credits).
The company plans to commence operations with a higher-grade ‘starter’ pit during the first 18 months of mining to produce 181,000oz gold and 420,000oz silver, with an average operating cashflow of $2,265/oz gold.
The development will have a net present value of $512 million, a 40% internal rate of return and a 1.9 year payback period (all unlevered and pre-tax).
Sharing the results
Mr Scanlon said he was looking forward to sharing the scoping study results with investors during the webinar.
“In just three years, we have grown Tunkillia to a 1.5Moz gold resource and outlined a project which we believe would rank favourably by AISC among Australian gold producers if it were in operation today,” he said.
“We plan to continue systematically building up Tunkillia’s potential over the next 12 months, targeting an optimised scoping study while pursuing complementary higher-grade mineralisation in the neighbouring Tarcoola goldfield.”
He said Barton’s cash balance of over $10m sees it well-positioned to advance its strategy of becoming a new large-scale South Australian gold producer.
Webinar details
The Small Caps webinar will commence at 6pm Sydney time, 4pm Perth time and 9am London time on Tuesday 23 July.
The webinar will include a live Q&A session for investors following Mr Scanlon’s presentation.
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