Touquoy restarts processing as St Barbara targets January gold

Touquoy reaches first ore milestone

St Barbara Limited (ASX:SBM) has moved Touquoy from restart plan to operating reality, processing the first ore through the project’s ball mill on 3 November 2026. The company expects commissioning to ramp up to full processing capacity by the end of December, with first gold doré targeted for January 2027.

The restart is centred on existing low and medium-grade stockpiles rather than newly mined ore. St Barbara said low-grade stockpiles processed previously in the first quarter of FY24 achieved an 84% recovery rate, although that historical result does not establish how the restarted operation will perform across its current stockpile mix.

The milestone follows the Touquoy restart clearance, which had set 3 November as the intended processing restart date. St Barbara said the operation’s return is expected to support about 200 rural jobs in Nova Scotia, while the formal reopening was attended by provincial ministers, community partners and representatives of local liaison groups.

FY27 guidance puts costs beside production

For FY27, St Barbara expects Touquoy to produce between 17,000 and 21,000 ounces of gold at all-in sustaining costs of A$2,070 to A$2,560 per ounce. The company’s footnote converts that range to C$1,945 to C$2,403 per ounce using an AUD/CAD exchange rate of 0.94, making currency movements one of the variables around the guidance.

The production range is paired with A$40 million to A$50 million of growth capital for the Touquoy Restart and 15-Mile Processing Hub projects. Touquoy accounts for A$10 million to A$15 million of that range, while 15-Mile accounts for A$30 million to A$35 million, subject to the permitting timetable. That permitting exposure matters because the 15-Mile permitting work had already introduced additional regulatory work for the proposed hub.

Reclamation spending competes with expansion

St Barbara is also guiding to A$24 million to A$30 million of Touquoy reclamation costs in FY27, alongside A$6 million to A$7 million of exploration expenditure. The company sees an opportunity to complete a significant portion of reclamation while excavators and dump trucks are already available for stockpile movement, particularly around the tailings management facility.

That spending should not be read as an immediate cash release from rehabilitation bonds. St Barbara said bond monies are not expected to be released during FY27 because completed work must first be inspected and signed off. Exploration spending could rise beyond the stated range once the company determines diamond-drilling capacity for the Old Austen Mine Down-Plunge Mineral Resource and the 15-Mile Mineral Resource.

The immediate test is therefore operational rather than geological: whether Touquoy can move from first ore to full processing by year-end and deliver first doré in January without pushing the cost range higher. The guidance remains exposed to commissioning performance, permitting, commodity prices, currency fluctuations and prevailing market conditions, all of which St Barbara identified as risks to its forward-looking statements.