Barton Gold’s Shallow High-Grade Zone Takes Shape at Tunkillia
Key Takeaways
- Phase 2 RC drilling at Tunkillia is confirming a new shallow high-grade zone within the S1 Starter Pit, with spatially clustered holes TKB0667–TKB0676 returning intercepts including 11m @ 8.73 g/t Au and a sub-interval of 2m @ 36.9 g/t Au.
- The new zone sits on top of mineralisation already modelled in the Starter Pits, meaning it represents potential grade upside to economics that already model a 73.2% IRR and a 0.8-year payback on an unlevered, pre-tax basis.
- The S1 and S2 Starter Pits alone are modelled to produce 365,000oz gold and A$1.3 billion in operating free cash in the first ~27 months of operation at an average cash cost of A$1,429/oz Au.
- Tunkillia's environmental Scoping Report has been approved by the South Australian Department for Energy and Mines, establishing the official terms of reference for the development approvals process.
- A Pre-feasibility Study is targeted for Q1 CY27, with an updated JORC Mineral Resource Estimate to be prepared once final Phase 2 assays are received.
New high-grade zone takes shape inside Tunkillia’s Starter Pits
Barton Gold has released further high-grade assays from its Phase 2 reverse circulation (RC) drilling programme at the Tunkillia Gold Project in South Australia, with results continuing to support the theory of a new shallow high-grade mineralised zone sitting within the existing Starter Pit outlines. These results build on assays first reported on 31 August 2026 and represent a growing body of evidence, not a standalone discovery.
The Phase 2 RC programme spans 39,000 metres in total. Final assays from the programme are still pending, after which Barton will prepare comprehensive cross-sections and progress to updated gold and silver JORC Mineral Resource Estimates (MRE). A Pre-feasibility Study (PFS) is targeted for completion in Q1 CY27.
The investment angle is straightforward: if the new shallow zone is captured in the upcoming MRE update, it could lift the grade profile of the Starter Pit material feeding into the PFS economic model, adding potential upside to economics that already model exceptional returns.
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What the latest assay results show
The strongest new results are concentrated in holes TKB0667 through TKB0676, which are spatially clustered in the middle of the S1 pit. This grouping reinforces the structural coherence of the new zone and supports the theory that mineralisation in this area is consistent and connected, rather than isolated.
The new high-grade zone is located within the shallow area of the Starter Pits.
| Hole ID | Interval | From (depth) | High-grade sub-interval | Notes |
|---|---|---|---|---|
| TKB0667 | 21m @ 3.62 g/t Au | 57m | 6m @ 7.30 g/t Au from 63m | S1 pit, central cluster |
| TKB0668 | 50m @ 1.45 g/t Au | 62m | 3m @ 5.32 g/t Au from 65m | S1 pit, central cluster |
| TKB0674 | 4m @ 3.80 g/t Au and 11m @ 8.73 g/t Au | 61m and 68m | 1m @ 8.90 g/t Au from 61m; 2m @ 36.9 g/t Au from 71m | S1 pit, central cluster |
| TKB0676 | 20m @ 2.06 g/t Au | 50m | 3m @ 5.68 g/t Au from 58m | S1 pit, central cluster |
| TKB0693 | 10m @ 4.30 g/t Au | 54m | 1m @ 10.5 g/t Au from 54m; 1m @ 10.7 g/t Au from 56m | S1/S2 zone |
| TKB0712 | 19m @ 1.72 g/t Au | 132m | 2m @ 12.1 g/t Au from 138m | Deeper intercept |
| TKB0714 | 42m @ 1.12 g/t Au | 139m | 2m @ 6.8 g/t Au from 169m | Deeper intercept |
| TKB0749 | 11m @ 2.71 g/t Au | 59m | 1m @ 13.7 g/t Au from 68m | Shallow zone |
For context, standout previously reported Phase 2 results include TKB0678 (11m @ 5.51 g/t Au from 14m depth, including 2m @ 24.7 g/t Au), TKB0703 (24m @ 4.51 g/t Au from 47m depth, including 2m @ 16.7 g/t Au), and TKB0639 (6m @ 6.61 g/t Au from 70m depth, including 1m @ 32.4 g/t Au).
Alexander Scanlon, Managing Director, Barton Gold
“Tunkillia’s infill drilling assays continue to surprise to the upside, with the latest results providing further support for a new ‘bonus’ zone of high-grade mineralisation sitting on top of that already modelled in the high-value ‘Starter Pits’.”
Understanding why shallow, high-grade mineralisation matters at Tunkillia
A Starter Pit is the first ore mined in a project’s life, before capital has been recovered. Its grade directly determines how fast that capital comes back, making it the most economically sensitive part of any open-pit mine plan.
A JORC MRE (Mineral Resource Estimate) is the independently classified inventory of mineralisation in the ground, categorised by confidence level. The PFS converts that inventory into financial projections. Phase 2 “infill” drilling increases confidence in existing mineralisation, moving resources from the Inferred to the Indicated category — a requirement for bankable feasibility studies.
If the new shallow high-grade zone is confirmed in the MRE update, it could lift the average grade of the Starter Pit material, improving the already-strong modelled economics going into the PFS.
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Project economics and the path to production
Barton’s May 2025 Optimised Scoping Study (OSS) established a compelling economic framework for Tunkillia. Key metrics from the OSS, all on an unlevered, pre-tax basis, include:
- Annual production: approximately 120,000oz gold and 250,000oz silver
- Total Life of Mine operating cash: approximately A$2.7 billion
- NPV (7.5%): approximately A$1.4 billion
- IRR: approximately 73.2%
- Payback period: approximately 0.8 years
Within the total project, the S1 and S2 Starter Pits are modelled to produce 365,000oz gold, 923,000oz silver, and A$1.3 billion in operating free cash during the first approximately 27 months of operation, at an average cash cost of A$1,429/oz Au. These figures assume AUD gold and silver prices of A$5,000/oz and A$50/oz respectively, and are presented on an unlevered, pre-tax basis.
The OSS economics were already compelling before this drilling. The new shallow high-grade zone represents potential upside to numbers that already model a sub-one-year payback.
On the approvals front, Tunkillia’s environmental Scoping Report was recently approved by the South Australian Department for Energy and Mines (DEM), establishing the official terms of reference for the development approvals process. This represents meaningful de-risking, allowing Barton to execute well-defined programmes with greater certainty and reduced cost.
Multiple work programmes are currently underway in support of the PFS and planned Mining Lease application:
- Flora, fauna, and water surveys and monitoring
- Aboriginal and cultural heritage surveys and work programme clearances
- Analysis of assays from the recently completed Phase 2 upgrade RC drilling programme
- Technical studies for tailings storage facility (TSF) and other non-process infrastructure
- Review of potential options for financing, construction, and operation of camp infrastructure
- Evaluation of prospective renewable energy solutions for reduced reliance on diesel power supply
Barton is targeting publication of the PFS during Q1 CY27.
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