Highlights

  • The Tolukuma Mineral Resource grew 81% to 909,000 oz gold at 6.57 g/t Au, including a maiden Indicated Resource of 199koz.
  • September drilling of 4,729m was the highest monthly total in Tolukuma's history.
  • Cash rose to about $56.5m after drawdown of a PGK 95m facility from National Banking Corporation.
  • Plant refurbishment and underground development continued, targeting a return to production in early 2027.

Tolu Minerals Limited (ASX:TOK) has released its quarterly report for the period ended 30 September 2026. The company described it as its busiest quarter on site, with resource growth, record drilling and continued work to restart the Tolukuma gold mine in Papua New Guinea.

Resource Growth and Record Drilling

An updated Mineral Resource Estimate released on 16 September 2026 reported 4.31Mt at 6.57 g/t Au for 909,000 oz gold and 3.9Moz silver at a 3 g/t Au cut-off. This is an 81% increase and includes a maiden Indicated Resource of 199koz. Mine planning and Ore Reserve estimation are the next steps.

The company completed 10,772m of diamond drilling during the quarter, with September's 4,729m a monthly record. Seven rigs are operating, and drilling reached 32,058m for 2026 by 23 October. External laboratory turnaround has extended to about four months, so Tolu is fast-tracking its own fire assay laboratory on site.

Pathway to Production

Underground lateral development totalled 327m, and 21,156t of material was moved to surface, including 3,475t of ore. About 10,900t of surface ore was stockpiled at quarter end ahead of plant restart. A long-hole drill rig was commissioned in late September, with more equipment arriving in November and December.

Plant refurbishment with engineering partner GRES included replacement of CIL tanks and preparation for a SAG mill gear change. New SAG mill liners and a trommel have been manufactured. Site power was increased, and new mobile and underground fleet arrived.

Funding and Regional Exploration

Cash rose to about $56.5m from $50.0m, supported by the drawdown of a PGK 95m (about $30.1m) five-year facility from National Banking Corporation at 9.60% per year. Exploration and evaluation spending for the quarter was about $13.4m. CEO Chris Muller said the company is well funded to carry its momentum into 2027.

Regional exploration continued across several licences, including soil sampling at Mt Penck, stream sediment sampling at Ipi River and drilling preparations at Kimono on the Frontier licence.

Key Takeaways

  • The Tolukuma resource grew substantially and now includes Indicated ounces.
  • Drilling activity has reached record levels, although assay turnaround is slow.
  • Plant and underground work continues toward a targeted early 2027 restart.
  • A new bank facility has strengthened the company's cash position.