Shut Nova Scotia mine may hold $118M in gold

St Barbara (ASX: SBM) has secured Nova Scotia’s approval to process about three million tonnes of ore remaining at the closed Touquoy gold mine. 

The recovery may earn the company $118 million (US$86 million) at gold prices around US$4,000 an oz., the Australian company said this week. It plans to start the work by year’s end after $11.4 million in capital costs, including to refurbish the mine’s mill. It expects to process 38,000 oz. from the stockpile grading 0.4 gram gold per tonne. All-in sustaining costs are estimated at US$1,598 per ounce.

The work is to last over 10 to 14 months and handle ore stockpiled when mining ceased in 2023 at the site about 100 km northeast of Halifax, the company said in a release. No new mining is allowed and all work is confined to the current footprint, according to the industrial permit granted this month. It regulates operations for environmental and human health standards.

“This approval has been received within the province’s target timeframe for approvals, and demonstrates the constructive engagement and sense of urgency of the [government’s] new Large Infrastructure File Team,” St Barbara CEO Andrew Strelein said in the release. “This will be a big confidence boost to the industry.”

Hub plan

The operation, estimated to create 197 jobs including for Touquoy’s former management team, comes as St. Barbara looks to develop a broader nearby area in its 15-Mile hub concept. Over the past two years, the company has consolidated about 697 sq. km around the planned hub. St Barbara has identified 56 exploration targets within a 75-km radius. The hub would produce around 100,000 oz. gold a year from 2030 to 2040, according to a release. 

At Touquoy, workers will place all processed waste into the existing open pit. Site reclamation began in 2024 and will continue in most areas, though officials will pause cleanup work in the mill area during ore processing. The province holds an $80-million bond from Atlantic Mining to ensure complete site reclamation under Environment Act requirements.

Shares in St Barbara have gained 20% this year to A71¢ apiece on Wednesday in Sydney, valuing the company at A$853 million (US$612 million). They’ve traded in a 52-week range of A22¢ to A89¢.

Last month, Nova Scotia and the federal government agreed on a “one project, one review” process to limit permitting times. The province started its critical minerals strategy in 2024 and updated it last year, identifying 20 critical minerals and four strategic minerals, including gold, as priorities for the province’s resource development.