~189koz added at cost of only A$12 / oz; Barton total MRE now 1.3Moz
Tunkillia Mineral Resources grow 20% to 1.15 Million oz
Adelaide, April 26, 2023 AEST (ABN Newswire) - Barton Gold Holdings Limited (
ASX:BGD) is pleased to announce that drilling in the Tunkillia Gold Project's 223 Deposit has delivered a ~189koz Au MRE increase at a cost of only A$12 per additional ounce. Total Mineral Resources are now 1.15Moz Au (38Mt @ 0.94 g/t Au).
HIGHLIGHTS
- Updated JORC (2012) compliant Mineral Resource Estimate (MRE) for Tunkillia Project '223 Deposit'
- Upgraded MRE includes:
o +45% tonnes (+12Mt)
o +20% Au metal (+189koz)
o 50 - 150m depth extensions in three key target zones tested
- Attractive emerging profile:
o 670koz of new 223 Deposit MRE in the Indicated category (58%)
o 225koz Au in shallow supergene
o ~80% of MRE tonnes and ounces within 200m of surface
o 300m long high-grade core
- Conservatively modeled with a production mentality; tighter grade capping and more internal dilution with a view toward efficient, bulk open pit operations and strong metal reconciliation
- Excellent return on exploration investment: new MRE ounces added for only A$12 / oz 'all in'
Commenting on the 223 Deposit's MRE update, Barton MD Alex Scanlon said:
"These results are a clear validation of the Company's thesis for Tunkillia. Adding 189koz Au of new Resource for only $12 / oz is an exceptional result, and it further confirms the value of extensional drilling in the 223 Deposit.
"This update marks an important step forward in our long-term development objectives. We will follow up these results, and other key regional targets, later this year. The 223 Deposit itself remains open to further extensions, nd we have already confirmed more than 2km of new gold mineralisation nearby. This all points to a very largescale system, and we look forward to working our way down the next ~20km of untouched shear along strike."
Updated Mineral Resource Estimate (223 Deposit)
Barton has completed an updated MRE for the 223 Deposit, reported in accordance with JORC (2012).
Efficient growth & extensions, with potential for more
Barton acquired the Tunkillia Project in December 2019 and undertook drill testing of the 223 Deposit during August 2021 to validate a theorised higher grade central zone.
In November 2021 Barton confirmed the central zone of the 223 Deposit as a high-grade priority development target area.
The Company believes Tunkillia has significant growth potential. Shortly after its 1996 discovery gold prices fell to record lows, reducing project investment until gold prices recovered. Over 80% of all drilling was completed from 1996 to 2005 (USD gold below $400/oz). The next ~10% was drilled from 2005 to 2008 (USD gold average price ~$650/oz). Historical drilling was therefore (on average) shallow and Barton's analysis indicated significant extension potential.
Significant extensions to depth of 50 - 150m have been confirmed in three key target zones (northern, central and southern), adding ~12 million tonnes to the MRE with ~189koz new ounces added for only $12 / oz (all inclusive). The MRE update includes 41 reverse circulation (RC) holes (9,901m) and 5 diamond (DD) drill holes (1,346m), completed at a total cost of only $2.3m (including drilling, assays, logistics, salaries / labour, and Native Title costs).
New drilling in MRE
The updated 223 Deposit MRE has been informed by 41 new RC holes (total 9,901 metres) and 5 new DD holes (total 1,346 metres).
Strong return on investment
- 50 - 150m depth extensions
- $2.3m 'all in' cost (see above)
- $12 'all in' cost per new ounce
- 16 ozs growth / metre drilled
Attractive emerging profile
- Mineralisation remains open to extension (depth and strike)
- 225koz Au contained in shallow (~40m deep) supergene blanket
- ~80% of tonnes and ounces within 200m of surface
- Broad (40-80m) mining widths
The 223 Deposit MRE was updated for potential development as a bulk open pit operation targeting efficiencies of scale and strong grade reconciliation. Tighter grade capping and more internal dilution therefore yield a higher confidence and lower-risk model for future investment. The 223 Deposit also has a broad, 300m long high-grade core with potential to enhance development economics.
Northern and southern depth extensions
Recent drilling in the 223 Deposit was designed to target potential extensions to depth, and new gold zones, in areas that were not previously tested due to low historical gold prices and limited investment.
A lack of drilling to depth was particularly evident in two key areas of the deposit - one northern and one southern - where the 2020 MRE Resource shell was very shallow. Drilling by Barton during 2022 and 2023 confirmed substantial mineral extensions to depth, and has extended Resources to depth by up to 150m.
Updated Global Attributable JORC Mineral Resources
Further to the updated MRE detailed in this announcement for Tunkillia's 223 Deposit, Barton's total attributable JORC (2012) Mineral Resource endowment has grown by approximately 17% to a total attributable 1,297koz Au (40.6Mt @ 1.0 g/t Au). Please refer to the table depicted below in Figure 7* for full details.
Figure 7* shows the complete MRE for each project in which Barton has an interest on a 100% basis, with Barton's ownership indicated below each project.
Barton's total attributable endowment of 1,297koz Au therefore reflects Barton's aggregate pro-rata ownership of each project's JORC Mineral Resources.
To view the Corporate Update Presentation, please visit:
https://www.abnnewswire.net/lnk/5QZ34WS8
About Barton Gold Holdings Limited
Barton Gold Holdings Limited (ASX:BGD) (FRA:BGD3) (OTCQB:BGDFF) is an ASX listed Australian gold exploration company with a total attributable ~1.1Moz Au JORC (2012) Mineral Resources endowment (28.74Mt @ 1.2 g/t Au), a pipeline of advanced exploration projects and brownfield mines, and 100% ownership of the only regional gold mill in the central Gawler Craton of South Australia.
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