Barton Gold Intercepts 24.7g/t in Tunkillia Starter Pit Targeting $1.3B Cash Flow
Key Takeaways
- Phase 2 RC drilling at Tunkillia's S1 and S2 Starter Pits has returned intercepts up to 32.4 g/t Au and 24.7 g/t Au — materially exceeding the 1.05 g/t Au average grade that underpins the project's existing economics.
- The highest-grade intercepts begin as shallow as 14m depth, sitting within already-modelled pit outlines rather than requiring new discovery or pit boundary extensions.
- The S1 and S2 Starter Pits are modelled to produce 365,000oz Au and 923,000oz Ag, generating A$1.3bn in operating free cash across the first ~27 months at a cash cost of just A$1,429/oz Au.
- JORC Mineral Resource upgrades for both gold and silver are expected in coming months, ahead of the Pre-Feasibility Study targeted for Q1 CY27.
- Barton Gold holds 100% ownership of the only gold mill in the Gawler Craton region, with a total JORC Resource base of 2.2Moz Au and 3.1Moz Ag and a long-term production target of 150,000oz per annum.
Barton Gold strikes high-grade gold in shallow Tunkillia Starter Pit zone
Barton Gold Holdings Limited (ASX:BGD, OTC:BGDFF, FRA:BGD3) has reported assays from its expanded 39,000m Phase 2 RC drilling program that confirm new high-grade mineralisation within shallow zones of the high-value ‘Starter Pits’ at the Tunkillia Gold Project in South Australia. These intercepts sit within the existing S1 and S2 pit outlines that drive Tunkillia’s robust economics, with gold and silver JORC Mineral Resource upgrades pending and the Pre-Feasibility Study on track for Q1 CY27.
The latest results include some of the highest grades received to date from the project, with intercepts starting from as shallow as 14m depth and materially exceeding the 1.05 g/t Au average grade that underpins the Starter Pit economics outlined in the May 2025 Optimised Scoping Study (OSS).
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Standout high-grade intercepts confirm Starter Pit upside
The Phase 2 drilling targeted new domains of high-grade mineralisation within the S1 and S2 zones, which are modelled to produce 365,000oz Au, 923,000oz Ag, and A$1.3bn in operating free cash during the first ~27 months of mine life alone. The average cash cost for this production is just A$1,429/oz Au.
What makes these results significant is not just the grade, but the depth. With intercepts beginning at 14m depth and spanning broad widths, the mineralisation profile points to potential Resource and grade-profile upside within an already-economic pit outline — not new discovery risk.
| Hole ID | Interval | Including |
|---|---|---|
| TKB0639 | 6m @ 6.61 g/t Au from 70m | 1m @ 32.4 g/t Au from 73m |
| TKB0678 | 11m @ 5.51 g/t Au from 14m | 2m @ 24.7 g/t Au from 16m |
| TKB0703 | 24m @ 4.51 g/t Au from 47m | 2m @ 16.7 g/t Au from 53m |
| TKB0681 | 7m @ 4.10 g/t Au from 65m | 1m @ 19.0 g/t Au from 67m |
| TKB0660 | 20m @ 2.14 g/t Au from 63m | 6m @ 5.13 g/t Au from 63m |
| TKB0651 | 11m @ 2.87 g/t Au from 79m | 1m @ 10.6 g/t Au from 88m |
| TKB0656 | 5m @ 2.85 g/t Au from 54m | 1m @ 3.97 g/t Au from 54m |
Broad, shallow, high-grade intercepts within an already-economic pit outline tell you something important: the grade profile could improve without needing to push deeper or extend pit boundaries. That compresses risk and potentially strengthens early operating margins.
How the Phase 2 expansion targeted a new high-grade domain
During December 2025 and January 2026, Phase 1 drilling returned broad high-grade results infilling the S1 and S2 pits. After analysing that data, Phase 2 was expanded to target what appeared to be a potential new domain of high-grade mineralisation within the existing S1/S2 pit areas.
The assays reported here are the first from this expanded program and appear to support that potential. The intercepts come from the S1/S2 zones within the main Area 223 open pit (modelled for early mine years) and the Area 51 pit (modelled for later project years).
What happens next in the assay and Resource sequence:
- One final batch of Phase 2 assays expected shortly
- Comprehensive cross-sections of assay results to be prepared once all results received
- JORC Mineral Resource upgrades for gold and silver to follow in coming months
- PFS completion and Mining Lease application to follow
Understanding why the Starter Pits matter
A ‘Starter Pit’ is the initial, highest-value phase of an open-pit mine. These pits are typically shallow and high-grade, designed to generate early cash flow and fast payback. They de-risk the project by funding later stages of development with early production revenue.
Grade matters because higher grade means more gold per tonne mined, which translates directly into stronger margins. In the case of Tunkillia, the S1 and S2 pits are modelled at an average grade of 1.05 g/t Au. When you intercept 6.61 g/t Au over 6 metres or 24.7 g/t Au over 2 metres within that same pit outline, you are not discovering new mineralisation — you are upgrading the grade profile of what is already there.
Alexander Scanlon, Managing Director
“Tunkillia’s ‘Phase 2’ drilling was expanded after early analysis of infill assays identified a potential new domain of high-grade mineralisation within its ‘Starter Pit’ outlines. These ‘S1’ and ‘S2’ pits drive Tunkillia’s robust economics, and are modelled to yield a A$1.8bn operating profit during the first 2.5 years alone at current gold and silver prices.
“Given that the average grade driving these economics in the ‘Starter Pits’ is 1.05 g/t Au, the new assays are exceptional. Such mineralisation could materially boost Tunkillia’s already remarkable early operating economics.”
Scanlon noted that the S1 and S2 pits are modelled to yield A$1.8bn in operating profit during the first 2.5 years alone at current gold and silver prices.
The economics behind Tunkillia’s development case
The May 2025 Optimised Scoping Study outlined a compelling development case for Tunkillia. The headline metrics establish the scale and profitability of the project at an assumed gold price of A$5,000/oz and silver price of A$50/oz.
| Metric | Total Project (OSS) | S1/S2 Starter Pits (~27 months) |
|---|---|---|
| Gold production | ~120,000oz p.a. | 365,000oz Au |
| Silver production | ~250,000oz p.a. | 923,000oz Ag |
| Operating cash | ~A$2.7bn LoM (unlevered, pre-tax) | A$1.3bn operating free cash |
| NPV / IRR | NPV7.5% ~A$1.4bn; IRR ~73.2% | — |
| Payback / cash cost | ~0.8 years | A$1,429/oz Au cash cost |
These figures derive from the May 2025 OSS and are not new results. What the latest drilling does is test whether the grade assumptions underpinning those figures are conservative, which is what these intercepts suggest.
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What’s next: PFS, permitting and project finance
A Pre-Feasibility Study has commenced, with publication targeted for Q1 CY27. Multiple work programs are underway to support the PFS, the planned Mining Lease application, and project finance conversations.
Active work programs include:
- Flora, fauna and water surveys and monitoring
- Aboriginal and cultural heritage surveys and clearances
- Analysis of Phase 2 upgrade RC drilling assays
- Tailings storage facility and non-process infrastructure studies
- Camp infrastructure financing, construction and operation options
- Renewable energy solutions to reduce diesel reliance
Resource upgrades for both gold and silver are expected in the coming months, ahead of PFS completion. Managing Director Alexander Scanlon stated the company looks forward to sharing those upgrades before completing the PFS and submitting the Mining Lease application.
Barton is targeting future gold production of 150,000ozpa, with 2.2Moz Au and 3.1Moz Ag in JORC Resources and 100% ownership of the region’s only gold mill in the Gawler Craton, South Australia.
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