Tolu Minerals Ltd. says it has made steady operational and infrastructure progress at its Tolukuma Gold Mine in Papua New Guinea, outlining a pathway toward a major underground expansion and a production ramp-up beginning in 2027.
In its quarterly report for the period ending 31 December 2025, the ASX-listed company said it is advancing a “mine-defining” project designed to support a long-term increase in mining capacity, with a target throughput of 500 tonnes per day. Initial production is forecast at about 20,000 to 25,000 ounces of gold per quarter once ramp-up begins in the first quarter of 2027.
The expansion plan centres on the development of new underground infrastructure, including access tunnels, dewatering systems, underground exploration platforms and a long-term tailings solution using paste backfill. Phase one includes the construction of approximately 1.4 kilometres of tunnel, with the potential to double that length over time.
Tolu said the project is intended to provide improved access to existing and future underground workings, support higher drilling intensity and deliver operational efficiencies through reduced pumping and ventilation requirements.
Underground operations progressed during the quarter following the issuance of a Form 15 underground mining licence by Papua New Guinea’s Mineral Resources Authority. The company reported that initial development blasting has recommenced, mine dewatering has accelerated and critical services, including ventilation and power, are now operational. The full underground mining fleet is on site and ready for production activities.
Exploration efforts during the period focused on near-mine targets to support early production and resource confidence. Tolu plans to expand its drilling fleet to eight rigs by June 2026, with accelerated drilling expected in the third quarter of 2026. The company said 13 kilometres of exploration access roads have been completed within Mining Lease 104.
The planned underground incline is expected to provide access along the full two-kilometre strike length of the Tolukuma deposit at depths where strong gold and silver mineralisation has already been identified. The deposit remains open at depth, with northern resource areas at incline level yet to be drill tested.
At the processing plant, refurbishment of key components including the SAG mill, Knelson concentrator and Acacia reactor is nearing completion. The elution circuit has been refurbished, while servicing of the conversion circuit is underway in preparation for a full plant restart. Tolu said it is close to appointing a preferred contractor for recommissioning.
The company is also progressing plans for a hydroelectric power facility, with term sheets under negotiation and a power purchase agreement structure being refined. Construction is expected to begin shortly, with power delivery targeted for early 2027.
In parallel, Tolu is developing a certified, in-house assay laboratory to improve turnaround times for grade control and reconciliation. The facility is expected to become operational in the third quarter of 2026.
Managing director Chris Muller said the company had achieved “steady and tangible progress” during the quarter across mining, exploration and infrastructure.
“The operational pathway ahead is well defined, priorities are aligned, and the team on site is fully focused on delivering a safe and reliable return to production,” Muller said in the report.
He said the planned underground incline would unlock systematic access to the deposit and materially reduce future capital and geological risk while supporting long-term resource growth.
While challenges remain, Muller said the company is well advanced along a clear and disciplined pathway toward restarting production at Tolukuma.
