SmallCaps Spotlight: Barton Gold (BGD.ASX) — de-risking Tunkillia, Challenger and the next restart pathway

## Episode overview - **Barton Gold snapshot (BGD.ASX):** Dual-hub gold development strategy in South Australia, combining mill restart optionality with flagship project scale. - **Near-term focus:** Potential **operations restart** using the **fully permitted central Gawler Mill**. - **Flagship development:** **Tunkillia** (1.6Moz gold product project) progressing **resource upgrades** and **PFS work**. - **Other key workstreams:** **Challenger** drilling and study inputs, plus **Tolmer** silver infill drilling.

## Key discussion points ### 1) What’s changed in the last six months? - **Challenger project:** Approximately **10,000m** drilled to support **resource upgrading** and identify **new high-grade mineralisation** and further **open-pit potential**. - **Tunkillia (large-scale) drilling:** Completion of a **58,000m** drill-out designed to convert mineralisation from earlier study categories toward **measured/indicated** outcomes. - **Tolmer silver:** **Infill drilling** at the high-grade silver discovery between **Challenger and Tunkillia**. - **Studies underway:** Scenario modelling and metallurgical testing feeding **Challenger definitive feasibility** and **Tunkillia pre-feasibility**, including mill leverage at **Gawler** and planning for a **second mill** at Tunkillia for large-scale operations.

### 2) Tunkillia phase two infill: what the results are telling the team - Results are broadly **in line with expectations**, indicating strong **conversion** potential through the JORC category ladder. - Focus on converting the **central, higher-grade zone** into a development-ready component capable of **accelerated payback**. - **Upside themes** highlighted: - **Higher grade indications** tied to oxide-zone structure opportunities (potential **grade/volume and cash-flow** uplift within the same pit concept). - **Thicker pit-end extensions** than previously anticipated.

### 3) Study timetable: what’s targeted and why it matters - **Tunkillia PFS** and **Challenger DFS** targeted for **completion/publication in Q1 calendar 2027**. - Additional drilling was inserted mid-program to expand resource and strengthen metallurgical and geotech datasets.

### 4) Capital allocation and balance sheet flexibility - Post placement positioning supported by a **$25.9m institutional placement** and a cash balance cited around **$31.9m** at the end of the June quarter. - Management’s approach: funding key milestones while retaining **flexibility** for value-adding follow-ups (e.g., potential incremental work at Tolmer if infill supports additional upside). - Operational continuity planning: mention of **diesel stockpiling** to reduce supply risk for field operations.

## Targets and themes to watch next - **JORC upgrades across the portfolio** following drilling completion. - **PFS/DFS outputs** and the quality of the transition from mineral resources toward **reserves** and financing-ready economics. - **Milestone-driven capital strategy**: using reduced execution risk to improve options for **lower-dilution funding**.

## Disclaimer This podcast is for information purposes only and does not constitute financial advice. Always consider the latest ASX announcements and seek independent professional advice.