Barton Gold ASX:BGD (OTCQB: BGDFF) has delivered additional high-grade assays from an expanded Phase 2 upgrade drilling campaign at its Tunkillia gold project in South Australia.

Broad intersections in the southern zone of the Area 223 optimised open pit have yielded some of the project’s highest grades to date.

Best results were 13 metres at 5.01 grams per tonne gold from 55m including 3m at 15.8g/t from 62m, and 17m at 3.09g/t gold from 100m including 1m at 8.9g/t from 102m and 1m at 36.9g/t from 108m.

Other highlights of 4m at 7.6g/t gold from 95m including 1m at 27.2g/t from 95m, and 21m at 1.65g/t gold from 93m including 2m at 11.67g/t from 102m were also recorded.

Phase 1 Drilling

Barton reported the results of Phase 1 upgrade drilling earlier this year, in which assays infilled the high-value S1 and S2 pit areas with broad, high-grade intersections.

These areas have been modelled to produce $1.3 billion operating profit during the first 2.5 years of operation at Tunkillia (assuming commodity prices of $5,000 per ounce gold and $50 per ounce silver) with a payback profile of less than 12 months.

The southern part of Area 223 includes the ‘S3’ and ‘South 1’ pit stages that are modelled to be mined during the middle and later years of the project’s life.

The new assays infill the existing mineralisation modelled in these areas, with Barton to then prepare comprehensive and representative cross sections once all assays have been received.

Higher-Grade Upside

Managing director Alexander Scanlon said more assays were expected from the area in due course, with the recently-expanded 40,000m campaign targeting further extensions and higher-grade mineralisation upside.

“We are pleased to confirm that Tunkillia continues to deliver broad, high-grade intersections in key areas with new assays from the southern Area 223 pit including some of the highest grade assays received to date in this zone,” he said.

“We look forward to completing our expanded Phase 2 upgrade drilling as quickly as possible, so that we can move on to mineral resource upgrades, the completion of our pre-feasibility study, and the submission of our mining lease application.”

The company currently has multiple work programs in progress including a number of environmental and cultural heritage surveys and clearances, technical studies for the tailings storage facility and other non-process infrastructure, evaluation of prospective renewable energy solutions to reduce reliance on diesel power supply, and a review of potential options for financing, construction, and operation of camp infrastructure.