St Barbara Limited (ASX: SBM), a diversified gold producer, is advancing plans to restart its Touquoy gold mine in Nova Scotia, Canada. The company announced the completion of its Touquoy Restart Study, which outlines a compelling investment case for resuming operations at the site. St Barbara is focused on discovering, developing and delivering sustainable value to all its stakeholders.
The Touquoy Restart Project aims to process existing stockpiles of medium and low-grade ore using the existing Touquoy processing plant. According to the study, this could yield 38,000 ounces of gold over a 13-month operational period. The project boasts strong economics, with an estimated pre-tax NPV5 of C$60.3 million (A$65.8 million) and an IRR of 564%, based on a gold price of US$3,000 per ounce. Capital costs are projected to be low, at approximately C$11.4 million (A$12.4 million), leveraging the existing processing plant and a new in-pit tailings deposition plan.
St Barbara anticipates significant economic contributions to Nova Scotia, estimating C$151 million to the Province GDP and supporting 197 direct, induced, and indirect jobs during operation. Managing Director and CEO Andrew Strelein highlighted the improved permitting environment in Nova Scotia, paving a clear pathway back into operations. The company has already started initial permitting scoping with the Larger Industrial File Team within Nova Scotia Environment and Climate Change.
The Restart Project is designed to use the existing infrastructure, requiring minimal capital investment and compressing construction timelines. The company expects a six-month construction period. The ore reserve reinstatement stands at 3.0Mt @ 0.4g/t for 43 koz. The study estimates All-In Sustaining Costs (AISC) of US$1,598 per ounce (A$2,458 per ounce). The company plans to continue reclamation activities at Touquoy while processing stockpiles.
