Tolu Minerals Advances Production at Tolukuma Gold Mine with Broader Exploration Activity

Highlights

• Tolu Minerals has commenced gold commissioning at the Tolukuma Gold Mine in Papua New Guinea, validating initial recovery efforts.

• The company is restoring hydropower infrastructure and enhancing site access to reduce long-standing operational costs.

• Airborne MT surveys have revealed deeper subsurface structures near Tolukuma and multiple porphyry systems at Mt Penck.

Tolu Minerals Ltd (ASX:TOK), operating within the gold mining sector, has initiated commissioning activities at the Tolukuma Gold Mine located in Papua New Guinea. This marks a critical milestone for the company, as it transitions from project development into early gold recovery operations. The recommencement confirms operational capacity and lays the groundwork for an extended production program across its broader resource base.

Commissioning and Infrastructure Readiness

Commissioning at the Tolukuma site follows substantial rehabilitation efforts involving existing infrastructure. The processing plant and associated assets had previously been mothballed due to elevated operational costs, particularly those linked to diesel consumption and helicopter-only accessibility after the shutdown of the on-site hydropower station. Tolu Minerals is now actively restoring this hydropower facility as part of a comprehensive capital improvement plan aimed at enhancing site sustainability and reducing dependency on high-cost logistics.

Cost Management and Access Improvements

Legacy challenges at Tolukuma were largely tied to fuel costs and transportation limitations. Tolu Minerals has prioritized mitigating these factors through infrastructure renewal, especially the rehabilitation of energy systems. By reactivating the mine’s hydropower capacity, the operation anticipates a transition to more efficient and less volatile energy sources. These changes are intended to create a more reliable operating environment and support future production activities.

Exploration Efforts and Survey Insights

The company has undertaken advanced geophysical work around the Tolukuma structure to support exploration beyond the existing mine boundary. Airborne magnetotelluric (MT) surveys have been completed, providing three-dimensional imaging of subsurface geological formations. This method has been previously utilized successfully in Papua New Guinea by other companies and has helped outline a series of new exploration zones surrounding the Tolukuma lease.

Drilling conducted near the Taula prospect, located a short distance from the primary mining lease, has confirmed grade continuity in the southern extension of the mineralized zone. This indicates the possibility of further mineral presence close to existing infrastructure.

Broader Regional Focus at Mt Penck

In addition to Tolukuma, Tolu Minerals has continued its technical programs at the Mt Penck site on New Britain Island. The MT survey carried out at this location identified several distinct porphyry structures. These geological formations are known for their association with significant mineral systems. The company has expanded its landholding in the area to cover these newly identified structures and support further evaluation.

Although Tolukuma remains the company’s primary operational focus, Mt Penck is regarded as an important secondary development, supported by exploration data and regional geological trends. The area features favourable topography and access characteristics, allowing efficient fieldwork and program expansion.

Strategic Jurisdiction and Market Presence

Tolu Minerals noted the stability of the Papua New Guinea operating environment, highlighting the country’s Westminster-style legal system and access to national infrastructure. The company's presence in the region is further reinforced by its listing on the Australian Securities Exchange under the ticker ASX:TOK.

With a clear focus on operational delivery and exploration advancement, Tolu Minerals continues to engage in activities that contribute to its presence within the Mining Stocks, ASX 200 landscape.