An optimised scoping study for Barton Gold Holdings’ (ASX: BGD) (OTCQB: BGDFF) Tunkillia project in South Australia has indicated the potential for significant processing efficiency gains.
The detailed review commenced in November and focused on high-priority opportunities relating to comminution circuit design, variable grind sizing, power consumption, mill throughput planning and mine scheduling.
It aimed to reduce the project’s power consumption, improve economics and de-risk working capital requirements.
Barton has completed additional drilling, comminution test work and scenario analyses comparing fresh and oxide material performance and recoveries at varied grind sizes in different circuits.
Preliminary analysis has indicated significantly reduced work indices and power consumption for all material types, with increased effective throughput rates of softer oxide materials during early operations.
An independent technical consultancy will validate the findings by the end of June.
Barton managing director Alexander Scanlon was confident the optimisation exercise would provide the company with greater returns from Tunkillia.
“The initial scoping study validated our thesis for an efficient, large-scale operation and we are now aiming to further improve economics and de-risk the project by reducing total power consumption, working capital requirements and exposure to energy price risk,” he said.
“We anticipate that this optimisation study will demonstrate meaningful cost and efficiency gains, with our preliminary scenario analyses and power studies better informing a budget and plan for expedited feasibility studies.”
The optimised scoping study follows the release of Tunkillia’s initial scoping study in July which validated the project’s efficiencies of scale based on an average production of 130,000 ounces per annum of gold and 311,000ozpa silver at an all-in sustaining cost of $1,917 per ounce.
It would also benefit from a higher-grade ‘starter’ pit, generating around 181,000oz of gold and an operating cash flow of $2,265/oz during the first 18 months of processing.
Barton acquired Tunkillia in December 2019, believing it had significant growth potential due to limited historical exploration during periods of lower gold prices.
The company’s decision to pour funding into exploration has been repaid with multiple resource upgrades since then.
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