St Barbara Limited (“St Barbara” or the “Company”) (ASX: SBM) is pleased to announce conclusions from the Company’s Touquoy Restart Study (AACE Class 4 level of accuracy) completed for the proposed restart of Touquoy. The study demonstrates a compelling investment case for a near-term, low capital restart with excellent project economics at this proven, low-cost operation.

The Touquoy Restart Project is designed to produce gold bullion from processing of existing medium and low grade stockpiles through the existing Touquoy processing plant. Touquoy operations ceased in 2023 with approximately 3.1 million tonnes of ore in stockpile because permits could not be obtained in time for continued production. The processing plant has been maintained in a state of ‘hot’ care and maintenance in preparation for future use as part of the 15-Mile Project and so can be readily returned to production.

Managing Director and CEO Andrew Strelein stated:
“The improved permitting environment in Nova Scotia, combined with a clear and constructive regulatory process, has created the opportunity for Touquoy to return to production in a responsible and timely manner. The renewed support for natural resource development in Nova Scotia with the improved permitting environment gives St Barbara a clear pathway back into operations in the Province. We look forward to working closely with our partners, communities, and regulators as we advance the next steps toward restarting Touquoy.”

“The Pre-Feasibility Study results show a compelling business case for restarting the Touquoy operation. Re-starting Touquoy provides St Barbara with a low-cost, near-term source of cash flow while fully maintaining our commitments towards closure and rehabilitation activities. Importantly, this approach allows us to leverage existing infrastructure without compromising our long-term environmental obligations.”

Recent encouraging changes in the permitting environment in Nova Scotia together with the increased gold price have encouraged St Barbara to revisit the potential to re-open the Touquoy Project and hence the commencement of the Touquoy Restart Study.

The Restart Project proposes reactivating the existing Touquoy processing facility to process these stockpiles utilising the open pit for in-pit tailings deposition. Leveraging existing infrastructure requires low capital investment and compresses construction timelines, enabling an anticipated six-month construction period. The Company retained key management, processing, mining, environment, community relations and administration personnel during care and maintenance and reclamation. This experienced team provide the core of the proposed restart of operations providing confidence in a smooth and efficient commissioning and operating phase.

The planned 13-month operating period is expected to generate positive cash flow ahead of the proposed timing for demobilising the processing facilities for relocation and construction of the 15-Mile Processing Hub Project.
Reclamation activities at Touquoy will continue as planned with a focus on completing the Tailings Management Facility cover system. Processing of the stockpiles removes this above ground material for processing and storage of the resulting tailings deep below the water line within the Touquoy open pit. The potential for a future closed-loop pumped hydro renewable energy project at Touquoy also remains unchanged with pit lake volumes and water quality still more than sufficient to allow for that development possibility.