Barton Gold (ASX: BGD) (OTCQB: BGDFF) has marked a defining quarter in its transition from explorer to developer, with major milestones across its South Australian gold portfolio led by the commencement of resource upgrade drilling at the Tunkillia project and plans for a restart of the Central Gawler Mill (CGM).
The company also secured $15 million in fresh capital through a premium placement led by Franklin Templeton, and announced its inclusion in the S&P/ASX All Ordinaries Index.
Managing director Alexander Scanlon said the September quarter represented “a key inflection point” as Barton moved toward Stage 1 production studies, planning, and financing in pursuit of its goal to become SA’s largest pure-play gold producer.
Tunkillia Upgrade Drilling Underway
Drilling began work during the quarter on the first phase of an 18,000-metre program aimed at upgrading the Stage 1 and Stage 2 ‘Starter Pits’ at Tunkillia to JORC (2012) Measured and Indicated classification.
The program follows the release of an Optimised Scoping Study in May outlining 942,000 ounces of payable gold and 2Moz of silver, an average all-in sustaining cost of A$2,222/oz, and an unlevered pre-tax net present value of A$1.4 billion.
Barton has scheduled a second phase of 30,000 metres for March to June 2026 to upgrade remaining pit areas ahead of a pre-feasibility study, with a mining lease application targeted before year-end 2026.
Central Gawler Mill Restart Pathway
At the 100%-owned Central Gawler Mill, a review by Ammjohn Solutions estimated reinstatement to the original 600,000-tonne-per-annum fresh ore design capacity at a cost of just A$26m—including upgrades to mill motors, automation, and the addition of a pre-leach thickener.
Barton has commenced a definitive feasibility study (DFS) into a phased restart using existing tailings as feed in Phase 1, then incorporating high-grade (above 3 grams per tonne) fresh ore in Phase 2.
The company has appointed Altris lead study manager, supported by SRK Consulting, Tetra Tech Coffey and GPA Engineering, and is targeting completion by March 2026 and initial operations by the end of that year.
High-Grade Growth at Tarcoola
Further drilling at the the Tarcoola project’s Tolmer prospect extended the western silver zone and delivered standout assays including 2,240g/t silver and 51.2g/t gold.
Soil assays identified broad gold–silver–lead anomalies pointing to possible extensions of mineralisation, while Barton completed 595 metres of diamond drilling to improve structural interpretation, with results due in November.
The Tolmer system now comprises shallow, silver-dominant mineralisation underlain by a deeper gold–silver horizon—both of which remain open along strike.
Wudinna Integration and Metallurgical Success
Barton finalised its acquisition of the Wudinna gold project from Cobra Resources, adding 279,000oz to its SA resource base, which now totals 2.14Moz gold.
Metallurgical test work achieved recoveries up to 99.3% and demonstrated the potential to produce a high-grade concentrate for trucking to the Central Gawler Mill or future Tunkillia plant.
The results open the door to regional blending opportunities, with Wudinna positioned 400–600km from Tunkillia and 600–850km from the mill depending on transport route.
Capital Strength and Corporate Growth
Barton held $6.3m in cash at 30 September, increasing to $20m post-quarter after completion of the $15m placement at $1.25 per share — a 7.6% premium to its 20-day volume-weighted average price.
US investment fund Franklin Templeton led the placement, and the company also launched a $2.5m share purchase plan for existing shareholders at the same issue price.
Barton outlaid a total of $2.3m exploration and project expenditure during the quarter on a range of activities including Tunkillia and Challenger MRE upgrade work, preliminary studies on the CGM, evaluation of the Tolmer discovery, and the acquisition of Wudinna.
Mr Scanlon said Barton’s integrated regional model — linking the Central Gawler Mill, Tunkillia, Tarcoola, and Wudinna projects — positions the company for a low-risk, staged growth pathway toward production of more than 150,000oz of gold per annum.
