Touquoy Restart Study Shows C$60 Million NPV and 564% IRR at US$3,000 Gold

Background and Project Overview

St Barbara Limited (ASX – SBM) has announced the completion of its Touquoy Restart Study, signaling a strategic move to revive gold production at its Nova Scotia operation. The Touquoy mine, which ceased operations in 2023 due to permitting delays, holds approximately 3 million tonnes of stockpiled ore at a grade of 0.4 grams per tonne, representing an estimated 43,000 ounces of gold. The restart plan focuses on processing these existing stockpiles through the maintained Touquoy processing plant, avoiding the need for new mining activities.

Economic Highlights and Production Outlook

The study, conducted to AACE Class 4 standards, outlines a 13-month operational period expected to yield 38,000 ounces of gold. Financially, the project is attractive, with a pre-tax net present value (NPV5) of C$60.3 million (approximately A$65.8 million) based on a conservative gold price of US$3,000 per ounce. The internal rate of return (IRR) is estimated at an impressive 564%, underscoring the project's strong profitability potential. Should gold prices rise to US$4,000 per ounce, the NPV could nearly double to C$109.3 million with an IRR soaring to 1,428%.

Capital Efficiency and Cost Structure

One of the restart's key advantages is its capital efficiency. The initial capital requirement is modest at approximately C$11.4 million (A$12.4 million), primarily allocated to refurbishing the existing processing plant and installing infrastructure for in-pit tailings deposition. Operating costs are competitive, with all-in sustaining costs (AISC) estimated at US$1,598 per ounce (A$2,458 per ounce), positioning Touquoy as a low-cost producer. The project leverages existing infrastructure and a skilled workforce retained during the care and maintenance phase, facilitating a swift and cost-effective restart.

Permitting and Environmental Considerations

Permitting prospects have improved markedly in Nova Scotia, with the provincial government designating gold as a strategic mineral and establishing a dedicated Larger Industrial File Team to streamline approvals. St Barbara is actively engaging with regulators and local communities, maintaining positive relationships through ongoing reclamation and community liaison committees. The restart plan involves no new land disturbance, minimizing environmental impacts. Tailings will be deposited subaqueously in the existing open pit, aligning with best practice environmental management and preserving the potential for future renewable energy projects at the site.

Local Economic Impact and Next Steps

The Touquoy restart is expected to contribute significantly to the Nova Scotia economy, with an estimated C$151 million boost to provincial GDP and support for nearly 200 jobs during operations. St Barbara aims to commence operations within six to eight months following permit approval, advancing procurement and regulatory submissions in parallel. The restart offers a near-term cash flow source while preserving commitments to closure and rehabilitation, setting the stage for the broader 15-Mile Project development in the region.