Resource Upgrade Drilling Begins on Tunkillia ‘Starter Pits'

Core Viewpoint - Barton Gold Holdings Limited has commenced JORC upgrade drilling for its Tunkillia Gold Project in South Australia, aiming to convert high-value open pits to JORC 'Measured' and 'Indicated' categories, which will facilitate project financing discussions and expedite development plans by the end of 2026 [2][4][6]. Company Update - The initial drilling program consists of approximately 18,000 meters of reverse circulation (RC) drilling, targeting the conversion of 'Stage 1' and 'Stage 2' pit materials to JORC 'Indicated' and 'Measured' categories [2][5][9]. - The May 2025 Optimised Scoping Study (OSS) projected annual production of around 120,000 ounces of gold and 250,000 ounces of silver, with a total operating cash flow of approximately A$2.7 billion over the life of the mine [4][14]. - The project is expected to yield 365,000 ounces of gold and generate A$1.3 billion in cash during the first two years, with a payback period of about 0.8 years [4][14]. Development Plans - A two-stage drilling program is planned for March to June 2026, which will further validate the mineralization and enhance the geotechnical and metallurgical databases for future open pit design optimization [3][8][5]. - The company has been approached by multiple prospective development and finance partners, indicating strong interest in the Tunkillia project [6][4]. Financial Metrics - The project has an estimated Net Present Value (NPV) of approximately A$1.4 billion and an Internal Rate of Return (IRR) of about 73.2%, both on an unlevered, pre-tax basis [4][14]. - The operating free cash flow is projected to be around A$825 million during the first 13 months at a cash cost of A$997 per ounce of gold, with total operating free cash of approximately A$1.3 billion over the first 27 months at an average cash cost of A$1,429 per ounce [14].