Tunkillia Scoping Study Indicates Potential for Major Gold Project

Barton Gold Holdings Limited (ASX:BGD)(FRA:BGD3)(OTCQB:BGDFF) has announced promising results from the initial Scoping Study at its Tunkillia Gold Project in South Australia. The study suggests potential for a 5Mtpa bulk open pit mining and processing model, aiming for capital economies of scale.

Key findings include a projected 6.4-year life-of-mine (LoM) with an 8-year project life, processing 30.7Mt of materials grading 0.93 g/t gold and 2.52 g/t silver. Initial estimates forecast production of approximately 833,000 oz of gold and 1.99 million oz of silver, with an average annual production of 130,000 oz of gold and 311,000 oz of silver.

The study also highlights a higher-grade ‘Starter’ pit for the first 18 months, expected to yield 181,000 oz of gold and 420,000 oz of silver, with an average operating cashflow of A$2,265 per oz of gold.

The estimated initial capital cost stands at A$374 million, with a projected Net Present Value of A$512 million and a 40% Internal Rate of Return, leading to a 1.9-year payback period.