St Barbara (ASX: SBM) is scheduled to resume processing stockpiled ore at its Touquoy gold mine in Nova Scotia on Tuesday, as a federal assessment requirement raises questions over the timetable for its proposed 15-Mile processing hub.
The restart covers about three million tonnes of previously mined ore and does not authorize new extraction. Mill refurbishment and tailings-line construction are complete, with commissioning and operations expected to ramp up through November and December, the company said Monday.
The federal decision was “very disappointing for both St Barbara and the Province of Nova Scotia,” managing director and CEO Andrew Strelein said, arguing that it conflicts with Ottawa’s commitment to avoid duplicate reviews.
The stockpiles offer a near-term return to gold production while St Barbara advances a larger regional development. The proposed hub would process ore from 15-Mile and two satellite projects, Old Austen and Old Mitchell, formerly known as Beaver Dam and Cochrane Hill.
St Barbara shares closed 2.8% stronger at A$0.73 in Sydney on Tuesday, following a 14% decline on Monday.
Stockpile restart
Nova Scotia granted industrial approval in April to subsidiary Atlantic Mining Nova Scotia to process the ore left at Touquoy when operations stopped in 2023. The approval restricts activity to the existing disturbed footprint, with processing waste to be deposited in the open pit.
Reclamation began in 2024 and will continue outside the mill area during processing. The province holds a $79.9-million reclamation bond, following an earlier cleanup bond dispute with the company.
As a contingency against delays at 15-Mile, St Barbara is preparing to seek provincial permission to resume mining within Touquoy’s existing open-pit footprint. Additional ore could supplement the stockpiles and extend production beyond 2027, the company said.
Federal assessment
The 15-Mile proposal entered the federal planning process in June. On Oct. 30, the Impact Assessment Agency of Canada determined that a federal impact assessment is required.
Potential effects on fish and fish habitat, migratory birds and Indigenous peoples’ traditional land use warrant further assessment, the agency said in its decision notice. The project could also affect Indigenous rights, heritage, health and social or economic conditions.
The agency said it would work with Nova Scotia to reduce duplication while meeting legislative and consultation obligations, taking into account the federal-provincial assessment agreement.
Federal officials have indicated the assessment can finish before the targeted mid-2028 construction start, according to St Barbara. The company plans to meet both governments over the next three weeks to assess the implications for costs and timing.
St Barbara supports Bill C-39, which proposes a maximum one-year period for federal reviews and decisions once comprehensive applications, studies and required information have been submitted. The proposed deadline would not begin with a project’s initial filing, according to the federal government.
Underground potential
St Barbara also announced an initial underground resource at Old Austen on Monday, identifying mineralization outside its previously reported open-pit resource.
The November estimate contains 2 million indicated tonnes grading 3 grams gold per tonne for 190,000 oz., and 2.8 million inferred tonnes at 3.7 grams for 330,000 oz., according to the company’s resource update.
The combined 520,000 oz. adds a potential underground source of ore to the regional development plans, although the estimate is a resource rather than a mining reserve.
Drilling planned for spring and summer 2027 will aim to upgrade the inferred material and test deeper extensions towards the Mud Lake fault, the company said.
Source: www.northernminer.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
