Barton Gold Holdings (ASX:BGD) said it appointed GR Engineering Services (ASX:GNG) to lead a pre-feasibility study for its Tunkillia gold project in South Australia, according to a Monday filing with the Australian bourse.

The study is now underway and is targeted for completion in the first quarter of 2027, per the filing.

The company said around 60,000 meters of reverse circulation drilling and roughly 3,000 meters of diamond drilling are scheduled for completion in September to support both the study and a mining lease application.

At current gold and silver prices, Tunkillia is modelled to generate about AU$1.75 billion of operating profit during its first 27 months of operation, Barton Gold said.

The company's shares fell 1% in recent Monday trade.