Gold explorer Barton Gold (ASX:BGD) claims an independent valuation report for its Central Gawler Mill in South Australia values the asset at over $100 million.
However, the company clarified that this figure was on an “as new” replacement value basis for the mill and its associated infrastructure, with the report valuing Central Gawler at over $50 million on an “as is” indemnity value basis.
The report was commissioned to inform the appropriate level of insurance cover to protect the mill and its associated infrastructure as Barton continues its regional development and assessment of potential options to begin accelerated stage one operations using the mill.
Commenting on the valuation report, Barton Gold Managing Director Alex Scanlon says: “The Central Gawler Mill is uniquely valuable strategic infrastructure for Barton. Being fully permitted and licensed, it provides considerable leverage to the regional development of gold mineralisation via either (or both of) third-party toll milling or accelerated commissioning of stage one operations utilising Tarcoola mineralisation.
“The Central Gawler Mill is uniquely valuable strategic infrastructure for Barton”
The mill provides Barton a significant advantage in crossing the drawbridge into operations on a much lower cost and risk basis, while potentially generating significant early cash to fund our larger long-term ambitions.”
In December 2022, Barton completed a preliminary preservation program at the Central Gawler Mill to assist with recommissioning scope and cost estimates, with key equipment disassembled, cleaned, and stored.
Yesterday (31 May 2023), Mining.com.au reported Barton returned average indicative grades of 3,000g/t Au in assays from the first 3.8 tonnes of material recovered from the mill. This material contained around 375 ounces of gold, which is valued at about $1.1 million at current gold prices.
Barton Gold is an ASX-listed gold explorer with a total attributable mineral resource endowment of 40 million tonnes @ 1g/t Au for 1.3 million ounces of gold across its Tunkillia and Tarcoola Gold projects in South Australia.
Additionally, the company also holds the Central Gawler Mill, which is the only regional gold mill in the central Gawler Craton of South Australia.
Write to Harry Mulholland at Mining.com.au
Images: Barton Gold Holdings Ltd
