The Australian gold rush to North America is accelerating. St Barbara has joined Newcrest and North Star resources in spending up big on mines in either Canada or Alaska. Total spend so far has topped $2.2 billion.
Credit Suisse was impressed with the visit to the Torquoy mine and processing facility. The broker now appreciates why management was willing to pay a premium to acquire Atlantic Gold although still believes exploration success is necessary to bridge the premium.
The company has approved the Gwalia extension project for $100m, which is in line with Deutsche Bank’s expectations. The project will extend mining to 2000m below surface, supporting seven years of operations below the current level.