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Highlights
- Initial gold production achieved at Tolukuma mine
- Expanded drilling reveals over 5km of epithermal veins
- Strategic geologist appointment bolsters exploration scale
Tolu Minerals Ltd (ASX:TOL) made significant strides during the March 2025 quarter at its flagship Tolukuma Gold Mine (TGM) in Papua New Guinea. The company reported its first gold production following the hot commissioning of a 6 tonnes-per-hour gravity circuit—a pivotal development marking the transition from exploration to early-stage production.
This progress was complemented by ongoing upgrades to site infrastructure and access routes, as well as the operational rollout of a modular tailings system employing geotubes. These actions are part of a broader plan to lay the foundation for sustained gold output in the future.
Exploration Expands Across Key Targets
Exploration activity ramped up significantly during the quarter. Tolu Minerals processed data from its Airborne Magneto Telluric (MT) survey covering TGM, the Ipi River, and Mt Penck tenements. The results are now guiding a comprehensive exploration campaign targeting new gold systems.
The on-mine drilling campaign completed six holes and identified over five kilometres of mineralised epithermal vein structures through surface mapping. A broader sampling effort—including ridge, spur, slope, and stream sediment programs—is scheduled to begin soon. These initiatives are geared towards establishing a JORC-compliant mineral resource of at least one million ounces of gold at a minimum grade of 8 grams per tonne by mid-2026.
Infrastructure and Environmental Advancements
Operational refurbishment progressed steadily, with a focus on high-voltage power restoration, ventilation, and underground dewatering systems. The modular gravity plant has been active since February 2025, enabling the company to process ore efficiently while longer-term tailings storage options are under evaluation.
In parallel, interim tailings management is already functioning with the geotube system, reflecting a proactive stance on environmental stewardship and operational continuity.
Strengthening the Team and Strategic Vision
The company further enhanced its technical capability with the appointment of Dr Chris Muller as Executive Group Geologist. Dr Muller brings deep experience from notable projects, including K92 Mining and the Wafi-Golpu development previously run by Newcrest. His arrival signals a stronger strategic focus on unlocking value from Tolu’s growing 1,962-square-kilometre portfolio of tenements and exploration licence applications.
Financial Overview
For the March quarter, Tolu Minerals reported a total cash expenditure of A$11 million, of which A$9.4 million was allocated to exploration. The company ended the period with A$5.73 million in cash reserves, demonstrating its ongoing investment in resource development and discovery.
