Edison Releases Report on Barton Gold's Tunkillia Project

Edison Investment Research has issued a report on Barton Gold (ASX: BGD). The report analyzes the initial scoping study results for the Tunkillia project, published on 16 July, outlining Barton Gold's progress toward its three-phase development strategy aimed at achieving approximately 150,000oz of annual gold production.

The study envisions a 5 million tonnes per annum (Mtpa) bulk open-pit mine operating over 6.4 years. It aims to process 30.7 million tonnes of material at an average grade of 0.93 grams per tonne (g/t) of gold. The project is estimated to generate a pre-tax net present value (NPV) of A$512 million at a 7.5% discount rate and an internal rate of return (IRR) of 40% at a gold price of A$3,500/oz.

The average all-in sustaining cost is estimated at A$1,917/oz, with an initial capital expenditure of A$374 million. Barton is now focusing on an optimization review to target further cost savings and extend the mine's operational life.