Highlights

  • Tolu completed 68 drill holes for 11,686 metres during the June 2026 quarter, taking year-to-date drilling to 143 holes for 22,975 metres.
  • New high-grade discoveries include 4.67m at 40.90g/t gold at Fundoot Splay and 2m at 16.94g/t gold at Gulbadi Splay.
  • A further July result returned 3.9m at 42.35g/t gold from 64.5m in the New Zine footwall splay.
  • The company ended June with approximately AUD 50 million in cash and continues to target first gold production from Tolukuma in Q1 2027.

Tolu Minerals Limited (ASX:TOK) is advancing the restart of the Tolukuma Gold Mine in Papua New Guinea while simultaneously expanding the geological understanding of the broader high-grade epithermal system.

Tolukuma is located in Central Province, more than 100 kilometres north of Port Moresby. The project includes the historical underground mine, existing processing infrastructure and a wider exploration position extending across the surrounding mineralised corridor.

Tolu’s strategy is based on combining a brownfield mine restart with an aggressive drilling program designed to expand the resource base before and after production begins.

The company’s latest substantive operational update remains its 31 July 2026 quarterly report, which confirmed continued progress toward the restart and highlighted the most intensive drilling campaign in Tolukuma’s history. A subsequent 10 August update strengthened the executive team through the appointment of a Chief Operating Officer as the company moves deeper into execution.

Drilling Scale

Drilling accelerated materially during the June quarter.

Tolu completed 68 holes for 11,686 metres during the period.

Across the first half of calendar 2026, this brought total drilling to 143 holes for 22,975 metres.

The company is targeting a drilling campaign of more than 75,000 metres as it seeks to redefine the scale of the Tolukuma mineral system.

One of the most important outcomes of the recent work has been the recognition of a much more complex vein architecture than previously modelled.

The updated geological interpretation now includes up to 44 mineralised veins and splays, compared with only 15 in the earlier model.

This broader interpretation is important because only around 1.2 kilometres of the known system has historically been mined.

High-Grade Results

Recent assays continue to support Tolukuma’s high-grade profile.

At Fundoot Splay, drilling returned 4.67 metres grading 40.90g/t gold from 66 metres, including 1.3 metres at 82.80g/t.

At Gulbadi Splay, another hole returned 2 metres at 16.94g/t gold from 149 metres.

These discoveries are significant because they represent additional mineralised structures outside the previously defined main vein framework.

On 29 July, Tolu reported a further 17 drill holes.

The standout result was 3.9 metres at 42.35g/t gold from 64.5 metres in the New Zine footwall splay.

Other results included 2 metres at 32.01g/t gold and 1 metre at 37.54g/t gold.

For a narrow-vein underground system, the continuity and geometry of these grades will ultimately be just as important as the individual intercepts.

Resource Update

Tolu had originally targeted an updated Mineral Resource Estimate for late August 2026.

The new estimate is being prepared using a far larger geological and drilling database than previous models.

Independent consultants H&S Consultants and RSC Consulting have been engaged to complete the work.

The updated model incorporates historical information, recent drilling and the expanded interpretation of up to 44 mineralised veins and splays.

This resource update will be important because it is expected to underpin the next mine plan.

The company intends to assess production across the Southern Expansion Zone, Northern Expansion Zone and Central Mine Zone.

A larger and better-defined resource could support a longer mine life and provide more flexibility around underground development sequencing.

Restart Progress

Operational work at Tolukuma has continued in parallel with drilling.

Underground development has recommenced, while processing plant refurbishment is substantially advanced.

Supporting infrastructure is also being upgraded ahead of the planned restart.

Tolu continues to target first gold production by Q1 2027.

The brownfield nature of Tolukuma provides some advantages compared with a greenfield project because the site already contains underground workings, processing infrastructure and historical operating knowledge.

However, restarting a historical mine still requires careful assessment of ground conditions, equipment reliability, plant performance and workforce readiness.

The next several months will therefore be critical in determining whether the current restart timetable can be maintained.

Funding Position

Tolu ended the June quarter with approximately AUD 50 million in cash.

Exploration and evaluation expenditure during the quarter was approximately AUD 9.7 million.

This funding position gives the company capacity to continue drilling while also progressing plant refurbishment and underground development.

For a company approaching production, Cash Management becomes increasingly important because expenditure can rise rapidly as mining, processing and site infrastructure move toward commissioning.

Tolu’s Balance Sheet provides a reasonable buffer, but disciplined allocation will remain necessary while the restart and resource expansion programs run concurrently.

Management Strengthening

On 10 August 2026, Tolu announced the appointment of a Chief Operating Officer.

The timing is relevant because the company is transitioning from exploration and restart preparation toward active mine operations.

A dedicated operating executive can help coordinate underground development, processing readiness, contractor performance and production planning.

This becomes more important as the project moves closer to commissioning.

Tolu also experienced board changes later in August, including a director resignation and interim chair appointment, although these were governance developments rather than changes to the operating strategy.

Exploration Beyond Mine

The broader Tolukuma system remains underexplored.

The company’s current geological interpretation suggests mineralisation extends for at least 8 kilometres.

Historical Mining covered only a fraction of that strike length.

This leaves significant exploration potential beyond the immediate restart area.

Tolu also holds additional PNG exploration assets, including Mt Penck, where the company is targeting epithermal gold-silver and broader polymetallic systems.

However, the near-term Investment case remains centred on Tolukuma because it offers the clearest route to production and cash flow.

Final Takeaway

Tolu Minerals is approaching a major transition as Tolukuma moves closer to production.

The company has combined mine-restart work with the most intensive drilling campaign in the project’s history, completing 143 holes for 22,975 metres by the end of June 2026.

New high-grade discoveries at Fundoot, Gulbadi and Zine have also expanded the geological model from 15 recognised structures to as many as 44 veins and splays.

For Tolu Minerals (ASX:TOK), the main milestones now are the updated Mineral Resource Estimate, continued underground development, plant readiness and delivery of first gold by Q1 2027.

With approximately AUD 50 million in cash, the company has the financial capacity to continue advancing both development and drilling.

The next stage will determine whether the expanded geological model can translate into a larger mine plan and a sustainable restart at Tolukuma.