Barton Gold upgrades Challenger resource to 223,000oz ahead of ‘Stage 1’ push

Barton Gold (ASX: BGD) (OTCQB: BGDFF) has released an updated mineral resource estimate (MRE) for the Challenger gold project in South Australia following the company’s detailed analysis of historical production and drilling records.

The project’s resource now sits at 223,000 ounces of gold (9.56 million tonnes at 0.72 grams per tonne), including a total of 81,200oz contained in existing high-grade zones.

The estimate excludes underground resources below 300 metres from surface – which the company is currently remodelling – as well as the various low-grade stockpiles and mill residuals currently on site.

MRE breakdown

The resource includes the main open pit with 69,600oz of gold (0.64Mt at 3.39g/t), the Challenger West open pit with 11,600oz (0.03Mt at 10.6g/t), a shallow portion of the main underground mine with 21,900oz (0.17Mt at 3.98g/t) and the Challenger South Southwest deposit with 12,200oz (0.40Mt at 0.95g/t).

Two historical tailings facilities with a combined 107,000oz (3.19Mt at 0.54g/t and 5.13Mt at 0.31g/t) have also been accounted for.

Barton’s total gold endowment across all its assets sits at 1.9Moz (73.0Mt at 0.79g/t) and its silver endowment is 3.1Moz (34.5Mt at 2.80g/t).

‘Stage 1’ feed sources

Managing director Alexander Scanlon said the company had identified several potential sources of economically viable mineralisation adjacent to the fully-permitted Central Gawler Mill for use as lower-cost and lower-risk ‘Stage 1’ feed.

“As indicated over the past 24 months, we have been analysing the potential for JORC mineral resources in the immediate vicinity of Central Gawler,” he said.

“[This] provides the option for a shorter, lower-cost and lower-risk pathway to operations and our re-rating to ‘producer’ status.”

Preferred development pathway

“The sustained upward movement in gold prices allows us to now exercise that option, so during the remainder of this year we will complete feasibility analyses to determine the preferred development pathway, with the objective of commencing Stage 1 operations before the end of next year,” Mr Scanlon added.

Steps along the commercialisation pathway include a re-extension of the Challenger underground resources model to depth, a preliminary capital cost estimate for recommissioning of the Central Gawler Mill and mining and feasibility studies to prioritise sources of mineralisation in the ‘Stage 1’ operations area.

The company aims to commence ‘Stage 1’ operations before the end of 2026.