Australian owner St Barbara (ASX:SBM) has submitted an updated reclamation plan and security estimate for its Atlantic operations in Nova Scotia.
Earlier this year, St Barbara said it had a $41 million reclamation security bond for its Atlantic properties. However, the latest submission to the province says the bond should be raised to $80 million. The company says it will probably have to provide cash backing for the larger bond.
St Barbara recently sold it Leonora development project in Australia to generate enough cash to pay down all senior debt and leases, leaving a proforma-cash balance of $197 million in the treasury. Part of those funds will be used to back the $80 million reclamation bond.
The Touquoy open pit gold mine is located about 80 km northeast of Halifax. Mining began in March 2017 and ceased in early 2023. The mill continues to operate processing stockpiles as its primary feed source until the end of 2024.
The company is prioritizing development of the Fifteen Mile Stream deposit with production forecast for 2026. The Touquoy mill could be repurposed to treat ore from this mine. Permitting has been paused at the Beaver Dam project, but exploration continues at Cochrane Hill, Mooseland, South-West, and Goldboro East.
Visit www.StBarbara.com.au for more information.