Tolu Minerals Limited reported continued operational progress at its Tolukuma Gold Mine (TGM) during the March 2026 quarter, as the company moves toward a staged restart targeting first production in 2027.
According to its quarterly report for the period ending March 31, 2026, the company maintained momentum across underground development, plant refurbishment, exploration and infrastructure, positioning the project for a controlled return to production.
The restart strategy is underpinned by a phased ramp-up targeting approximately 500 tonnes per day, with production expected to commence from the first quarter of 2027.
High-grade drilling reinforces near-mine potential
Exploration results from the Zine North prospect highlighted the strength of near-mine resource potential, with multiple high-grade gold intercepts reported during the quarter.
Key results included 4.10 metres at 11.2 grams per tonne (g/t) gold, including 1.1 metres at 21.6 g/t, alongside additional intercepts reaching up to 26.6 g/t gold. These results confirm mineralisation at relatively shallow depths, supporting both open-pit and underground development scenarios.
As shown in the drilling tables and maps in the report, including the plan view on page 5, the Zine vein system extends across a structurally controlled corridor with multiple high-grade shoots, reinforcing its potential to support early-stage production and longer-term resource expansion.
The company is scaling up its drilling capacity to accelerate resource delineation, with seven rigs currently in operation and an eighth expected to be deployed in June 2026.
Underground development and plant readiness progress
Underground operations continued to improve access and establish critical services, with dewatering and rehabilitation progressing in line with expectations. These activities are considered essential to enabling sustained mining operations once production resumes.
At the processing plant, refurbishment of key components — including the SAG mill, Knelson concentrator and Acacia reactor — is nearing completion, while elution and carbon systems are already operational. The company is assessing opportunities for early gold recovery ahead of full commissioning.
Supporting infrastructure is also advancing, including development of a hydroelectric power solution and construction of an on-site assay laboratory, which is expected to be commissioned in the third quarter of 2026.
Structured pathway toward production
Managing director and CEO Dr Chris Muller said the March quarter demonstrated disciplined execution across all operational fronts.
"The March quarter reflects disciplined execution across all workstreams at Tolukuma, with measurable gains in underground access, plant readiness and overall site capability,” Muller said.
He added that exploration results validate the company’s near-mine strategy and support early production plans. “High-grade drilling results at Zine highlights the effectiveness of our near-mine exploration strategy and reinforces the potential to support early production,” he said.
Muller noted that assay results from additional drilling campaigns are pending, with further updates expected in the June quarter. “We anticipate a significant suite of new drilling results to be announced this June quarter,” he said.
The company is also progressing its Mine-Defining Project, which is designed to unlock deeper high-grade zones and support long-term mine planning and resource growth.
“Our focus is on a safe, controlled transition to production. The team continues to execute with consistency, and we are well positioned to build further momentum through 2026,” Muller said.
Funding and corporate position
During the quarter, Tolu secured A$23.75 million through the issuance of convertible notes to Petrosea Services Solutions Pte Ltd, strengthening its balance sheet ahead of development.
Exploration and evaluation expenditure for the period totaled $7.8 million, reflecting ongoing investment in drilling, underground works and project development.
The company holds a 100% interest in Mining Lease ML104 and surrounding exploration licences in Papua New Guinea, with tenure governed under the country’s Mining Act.
With drilling accelerating, infrastructure advancing and plant refurbishment nearing completion, Tolu said it enters the June 2026 quarter with strong operational momentum as it progresses toward restarting gold production at Tolukuma.
