Regulatory Shift Forces St Barbara to Rethink Touquoy Closure and Reclamation Strategy

Regulatory Progress in Nova Scotia

St Barbara Limited (ASX – SBM) has taken a significant step in its Nova Scotia operations by withdrawing its Supreme Court appeal concerning reclamation conditions at the Touquoy Mine. This move follows notable improvements in the provincial permitting environment, including the establishment of the Large Industrial File Team (LIFT) within the Nova Scotia Department of Environment and Climate Change. The LIFT group centralizes expertise to better manage large industrial projects, providing a more streamlined and collaborative regulatory framework.

The Nova Scotia government’s designation of gold as a Provincial Strategic Mineral and recent swift approvals for other mining projects underscore a more supportive environment for resource development. St Barbara’s decision to engage directly with the LIFT group rather than pursue legal mediation signals confidence in this new regulatory approach.

Reopening Touquoy for Stockpile Processing

Alongside regulatory progress, St Barbara is investigating the potential to restart the Touquoy Mine to process approximately 3.1 million tonnes of low and medium grade stockpiled ore, averaging around 0.46 grams of gold per tonne. These stockpiles were previously removed from the company’s Ore Reserves when the mine ceased operations in 2023 due to tailings storage limitations.

The Touquoy processing plant has been maintained under a “hot care and maintenance” regime, allowing for a relatively quick restart if approvals are granted. The company plans to amend its Industrial Approval to permit in-pit tailings deposition, a method considered industry best practice for environmental stability. This approach would run in parallel with ongoing reclamation activities, potentially improving waste rock dump reclamation outcomes by removing remnant ore-grade stockpiles from the surface.

Economic and Strategic Implications

Restarting Touquoy for stockpile processing is expected to provide a near-term boost to cash flow and employment in rural Nova Scotia without disrupting the development timeline of the 15-Mile Processing Hub Project. The 15-Mile project, targeting 3 million tonnes per annum and an average annual production of approximately 100,000 ounces of gold over 11 years, remains on track for a pre-feasibility study completion in March 2026.

St Barbara’s Managing Director and CEO Andrew Strelein emphasized the dual benefits of the restart – capitalizing on favourable gold prices while enhancing reclamation plans. The company has already invested around C$18 million in reclamation since closure and is advancing its closure and reclamation plan based on extensive research.

Looking Ahead

The evaluation of the Touquoy restart, including permitting, engineering, and mill restart requirements, is expected to conclude by the end of December 2026. Subject to regulatory approval, operations could resume within 6 to 12 months thereafter. Meanwhile, the potential for a closed-loop pumped hydro renewable energy project at Touquoy remains unaffected, with the pit lake’s capacity suitable for the scheme’s lower reservoir.

St Barbara’s strategic pivot reflects a pragmatic balance between regulatory collaboration, operational flexibility, and long-term project development, positioning the company to leverage both immediate and future opportunities in Nova Scotia’s evolving mining landscape.