Australian company St Barbara has received permission from the Canadian province of Nova Scotia to process three million tons of ore remaining at the closed Touquoy gold mine. Recovering the metal from the dumps could earn the company about C$118 million ($86 million) at current gold prices of about $4,000 an ounce.
St Barbara plans start work by the end of this year after investing C$11.4 million in capital expenditures, including the restoration of the mill. It is expected that 38 thousand ounces of precious metal will be recovered from the dumps with an average grade of 0.4 grams of gold per ton. Total sustaining costs are estimated at $1,598 per ounce.
Processing will last from 10 to 14 months. All ore was stockpiled when mining ceased in 2023. The mine is located approximately 100 kilometers northeast of Halifax. Under the license issued this month, new mining is prohibited and all activity is limited to the existing site. The permit regulates operations in compliance with environmental and human health safety standards.
St Barbara CEO Andrew Streline said the permit was received within the province’s timeframe, demonstrating the constructive engagement and responsiveness of the government’s new major infrastructure project team. This, he said, will be a big confidence boost for the entire industry.
The project, which will create 197 jobs including Touquoy’s former management team, is being delivered as part of St Barbara’s wider 15 Mile hub vision. Over the past two years, the company has consolidated approximately 697 square kilometers around the planned hub and identified 56 exploration targets within a 75-kilometer radius. The hub is expected to produce approximately 100 thousand ounces of gold per year from 2030 to 2040.
At the Touquoy mine, all processed waste will be disposed of in an existing open pit. Reclamation of the site began in 2024 and will continue throughout most of the area, although work will be suspended in the mill area while ore is processed. The Province holds a C$80 million bond to Atlantic Mining to ensure full remediation of the site in accordance with the Environmental Protection Act.
St Barbara shares have risen 20% this year to A$0.71 a share, giving the company a market capitalization of A$853 million ($612 million).
Last month, Nova Scotia and the federal government agreed to a “one project, one review” process to speed up permitting timelines. The province launched its critical minerals strategy in 2024 and updated it last year, identifying 20 critical and four strategic minerals, including gold, as priorities for resource development.
Source: mining.com
Image: St Barbara
