St Barbara updates PFS for 15-Mile processing hub

St Barbara (ASX: SBM) updates the preliminary feasibility study (PFS) for its 15-Mile processing hub at its Atlantic operation in Nova Scotia. The gold mining with a central mill is located about 80 km northeast of Halifax.

The updated PFS includes revised models for 15-Mile, Old Austen and Old Mitchell open pits. The document strengthens project economics with a more refined design that remains within the scope of the company’s current regulatory submissions.

Proven and probable reserves at these sites total 1.4 million oz. in 38.7 million tonnes grading 1.2 g/t gold. This level of reserves will support a project life of 13 years, up from an earlier estimate of 11.4 years. A total of 1.4 million oz. of gold will be recovered, peaking at approximately 130,000 oz. in the second year of production.

The PFS includes 17.6 million tonnes of measured resource grading 1.2 g/t gold; 38.7 million tonnes of indicated resource at 1.3 g/t gold; and 6.1 million inferred tonnes at 1.2 g/t gold. The resources are constrained by a US$2,500/oz. pit shell using a cut-off grade of 0.3 g/t gold.

St Barbara has also  de-risked the project by finding design  efficiencies. The preproduction capital spend will be $289 million, only marginally higher than the $283 million estimate announced at the beginning of the year.

The all-in sustaining cost per ounce of gold will be US$1,098 underpinned by low open pit strip ratios expected to be 2.8:1. Based on previous experience at the Touquoy mine, the ore is free-milling and recoverable by conventional means. The costs are also kept low by sharing by sharing then across three mining areas.

The increased production profile and mine life delivers a 21% improvement in estimated net present value (NPV) with a 5% discount rate compared with the earlier PFS. The updated information includes a post-tax NVP₅ of $1.6 billion, and the internal rate of (IRR) is 81.6%. Payback of the initial capital will occur in one year. A gold price of US$3,000 was used in the PFS.

The earlier PFS put the post-tax NPV₅ at $1.3 billion and the IRR at 80.2% with a payback period of 0.9 year at the same gold price.

St Barbara it is well funded to proceed with the 15-Mile central processing hub with $424 million on hand at the end of August 2026. The restart of the Touquoy mine in March this year and the sale of non-core assets is expected to add a further $449 million to the company’s treasury.

Meanwhile the preparation of the feasibility study is underway with a targeted completion date of March 2027, to be followed in June with the final investment decision.

More information about the 15-Mile hub is posted on www.StBarbara.com.au.