Barton Gold announces positive initial scoping study for Tunkillia Gold Project

Barton Gold Holdings Limited (ASX: $BGD) has completed an initial Scoping Study for its Tunkillia Gold Project in South Australia. The study outlines a potential large-scale operation with a focus on economies of scale, targeting a 5Mtpa bulk open pit mining and processing model. The study estimates a 6.4-year life-of-mine and a total project life of approximately 8 years, with a total of 30.7Mt processed materials grading an average of 0.93 g/t gold (Au) and 2.52 g/t silver (Ag). The initial estimates include a total payable metal of approximately 833koz Au and 1,993koz Ag, with an average annual production of around 130koz Au and 311koz Ag. The study also indicates an average operating cashflow of approximately A$1,626 per ounce of gold (net of by-product Ag credits) and an average All-in Sustaining Cost (AISC) of approximately A$1,917 per ounce of gold (net of by-product Ag credits).

Barton Managing Director's perspective on the initial Scoping Study results

Barton's Managing Director, Alex Scanlon, expressed satisfaction with the preliminary results, stating, 'We are pleased to announce these preliminary results which validate our strategy to target economies of scale and outline a project that, were it in operation today, would rank favourably among Australian gold producers. Even based upon initial processing cost assumptions that Barton considers to be fairly conservative, and only a 6-year initial mine life, Tunkillia delivers strong returns, competitive AISC performance, and a 1.9-year payback. This is only a preliminary study, and we have already identified multiple areas for potential optimisation in terms of process design, capital costs, operating costs, and growth in the life of mine and materials schedule. In only 3 years' time, we have grown Tunkillia to a 1.5Moz Au JORC Resource and demonstrated a viable, large-scale standalone operation. We believe this is just the start for Tunkillia and its neighbouring assets, and with over A$10m cash, we are very well positioned to continue systematically building up their combined potential.'

Summary of the initial Scoping Study and outlook

The initial Scoping Study for Barton Gold's Tunkillia Gold Project indicates the potential for a large-scale operation with significant returns and competitive performance. The study outlines a 6.4-year life-of-mine and a total project life of approximately 8 years, with strong average annual production of gold and silver. The company has identified multiple areas for potential optimisation in terms of process design, capital costs, and operating costs, indicating a positive outlook for future development. Barton Gold's ambitions to continue building the potential of Tunkillia and its neighbouring assets are supported by the study's robust estimated technical fundamentals and economic results, positioning the company for continued growth and development in the gold sector.