Barton Gold tipped for major upside by Edison Investment Research as drilling accelerates at Tarcoola

A new research report has forecast strong share price growth for Barton Gold (ASX: BGD) (OTCQB: BGDFF) as it fast-tracks drilling at its Tarcoola project in South Australia.

The new note from Edison Investment Research has valued Barton at between $1.61 and $2.53 per share, with as much upside as $4.00 mooted.

Edison has once again highlighted the value of the company’s Central Gawler Mill, which it suggests can provide a short, lower-cost / lower-risk pathway for a ‘Stage 1’ development, with Barton targeting a return to operations at Tunkillia during 2026.

Barton re-rating

The report predicted a re-rating of Barton to being a ‘producer’, with the cash flow to fund Tunkillia’s development and achieve the company’s ambition to become a 150,000-ounce-per-annum gold producer.

Edison also highlighted the robust results from a recently updated scoping study, which saw an 8% reduction in capex and 24.4% and 18.0% lower unit oxide and sulphide processing costs.

The research firm noted the study extended the life of the operation from 7.7 to 10 years, with the result that the estimated amount of payable gold produced has increased by 13.1%.

New Tarcoola activities

Barton is about to embark on a new program of activities at its Tarcoola gold project.

Earlier this week, Barton confirmed that it was expediting the next stage of drilling at Tarcoola, with a major focus on the new Tolmer ‘silver zone’ discovery.

New assays from reverse circulation drilling at Tolmer identified further shallow high-grade mineralisation in each of the ‘western silver’ and ‘eastern gold’ zones, extending both along their interpreted strike.

Tolmer find expedited

Barton managing director Alexander Scanlon said the company is wasting no time following up the new Tolmer high-grade silver discovery, with recent silver assays ranked in various ‘global Top 10’ rankings.

“We have several work programs underway, including multiple bodies of work to develop our Stage 1 operations restart plan and an initial program of 2,500 metres high-grade silver and gold drilling starting next week at Tolmer,” Mr Scanlon said.

“With multiple globally significant high-grade silver assays in the first seven discovery holes, Tolmer presents an exciting opportunity to map out another significant commercial opportunity for Barton Gold.”