Australia’s St Barbara unveils bold Canadian push
Australia’s St Barbara (ASX: SBM) has unveiled an aggressive exploration strategy in Nova Scotia, Canada, as it advances plans to redevelop its 15-Mile open pit gold mine and processing hub project and reshapes its global portfolio.
The company has assembled a 697 sq. km land package in the province over the past two years, consolidating ground around its proposed 15-Mile hub despite licence reviews that trimmed its overall tenure and ongoing permitting challenges as the Touquoy mine winds down.
Since acquiring Atlantic Gold in 2019, St Barbara has built a dominant position across prospective ground, identifying 56 targets within a 75 km radius of the planned hub. The targets focus on the Moose River Formation and 12 regional prospects within the Goldenville Group metasediments.
Its landholding spans 164 km of prospective anticlines, including 75 km where the favourable Moose River Formation is exposed at surface or lies beneath shallow cover, in some areas less than 30 metres deep.
St Barbara describes the targeted gold systems as classic mesothermal deposits, comparable to those in Victoria’s goldfields, New Zealand’s South Island and California’s Mother Lode belt.
Fieldwork is set to begin in May, combining surface sampling and reverse circulation drilling, with targets refined through a comprehensive structural review supported by newly acquired geophysical data. The company has also secured ground at Rocky Lake to test for northeast extensions of the Mooseland Anticline.
The exploration push supports redevelopment plans at 15-Mile. A prefeasibility study released earlier this year projected annual production of 103,000 oz at all-in sustaining costs of $1,188/oz over an initial 11-year mine life. At a gold price of $3,000/oz, the project carries a post-tax net present value of A$1.4 billion and an 80% internal rate of return. St Barbara estimates the C$283 million cost to relocate the Touquoy plant and rebuild infrastructure could be repaid in about 12 months.
Spot gold remains above $5,000 per ounce. Before 15-Mile enters production, St Barbara expects to process Touquoy stockpiles containing 38,000 ounces of the precious metal.
Renewed Canadian focus
The Nova Scotia push follows last year’s aborted attempt to spin off or sell the former Atlantic Gold assets. After failing to attract sufficient interest, St Barbara opted to advance development instead, citing what it sees as a more workable permitting environment.
At the same time, the company is moving to exit its Simberi gold project in Papua New Guinea. It agreed to sell a combined 50% stake to China’s Lingbao Gold Group and PNG’s Kumul Mineral Holdings for up to A$470 million in staged cash payments and loans. The deal, expected to close by the end of March, aligns with a final investment decision on Simberi’s next phase.
St Barbara said the transaction would fully fund its share of the $325–345 million sulphide expansion, which aims to lift production to 200,000 ounces a year. Simberi’s remaining oxide operations are considered marginal due to high costs.
Shares in St Barbara rose 10.5% to 79 Australian cents in Sydney on Wednesday, valuing the company at A$950 million ($677 million). The stock has gained 34% year to date and traded traded between 19 and 82 Australian cents over the past year.
Much of the gold sector’s growth in Atlantic Canada — Nova Scotia, New Brunswick and Prince Edward Island — has occurred only in the last decade, as investors are slowly discovering the region’s potential.