St Barbara’s 15-Mile Hub Concept Shows A$1.08 Billion NPV with C$251M Capex

A New Processing Hub Strategy

St Barbara Limited has released a positive Concept Study for its 15-Mile Processing Hub in Nova Scotia, Canada, marking a pivotal step in the company’s regional development strategy. The study endorses relocating the processing plant from the now-closed Touquoy site to 15-Mile, upgrading the mill with a larger 5.5MW ball mill to handle a throughput of 3 million tonnes per annum (Mtpa). This hub will process ore from the 15-Mile, Beaver Dam, and Cochrane Hill deposits, with the latter two transported by road.

The integration of these deposits into a single processing hub is designed to optimise capital efficiency, reduce operational complexity, and leverage existing infrastructure. The Concept Study, classified as AACE Class 5 with ±50% accuracy, outlines a stable production profile averaging approximately 106,000 ounces of gold annually over an 11-year mine life, excluding potential upside from inferred resources or exploration targets.

Robust Economics and Capital Efficiency

The project’s financial metrics are compelling. Initial capital expenditure is estimated at C$251 million (A$279 million), notably low for a project of this scale, thanks largely to repurposing equipment from Touquoy and a streamlined design. Life-of-mine all-in sustaining costs (AISC) are projected at US$1,197 per ounce, reflecting low strip ratios and high gold recoveries from conventional carbon-in-leach processing.

At a gold price assumption of US$2,500 per ounce, the post-tax net present value (NPV) at a 5% discount rate is approximately A$1.08 billion, with an internal rate of return (IRR) of 76%. These figures underscore the project’s strong value proposition, supported by efficient capital deployment and operational synergies.

Environmental and Community Considerations

Environmental stewardship is a clear priority in the project’s redesign. The footprint at 15-Mile has been reduced by about one-third, Beaver Dam’s disturbance halved, and Cochrane Hill’s footprint significantly minimized by eliminating the need for a tailings management facility and water extraction. The project also plans to remediate historical tailings, improving baseline water quality and fish habitats.

Community engagement has influenced these design changes, with ongoing consultations and established liaison offices in local towns. The provincial government’s designation of gold as a strategic mineral and streamlined permitting processes further enhance the project’s regulatory outlook.

Operational and Technical Insights

The mining plan involves conventional open-pit methods across all deposits, with mining ramping up from 15-Mile initially, followed by Beaver Dam and Cochrane Hill in years four and six respectively. The processing plant will operate at an availability of 92%, with metallurgical testing confirming high recoveries, 97.1% for 15-Mile, 95.8% for Beaver Dam, and 95% for Cochrane Hill.

Ore from Beaver Dam and Cochrane Hill will be trucked 60km and 70km respectively to the 15-Mile hub via public roads, eliminating the need for new haul roads and reducing environmental impact. The processing flowsheet maximizes reuse of Touquoy plant equipment, requiring only the ball mill upgrade and an additional leach tank to achieve the increased throughput.

Next Steps and Forward Outlook

St Barbara is advancing a Pre-Feasibility Study (PFS) targeted for completion in Q3 March FY26, alongside ongoing environmental baseline studies and community engagement. The company is preparing for an Environmental Impact Assessment submission by mid-FY27. Funding strategies remain open, with options including debt and cash flow from other operations, though no commitments have been secured yet.

While the Concept Study provides a promising blueprint, it remains preliminary, particularly regarding Cochrane Hill’s Ore Reserves, which await further metallurgical testing and feasibility validation. The company’s ability to secure necessary permits and social license will be critical to translating this concept into a producing asset.