Australia-based St Barbara (ASX: SBM) has completed its concept study for the integration of the Cochrane Hill gold project in Nova Scotia with a 15-Mile processing hub. This means the company is that much closer to setting up a three million tonnes per annum processing plant at the 15-Mile project to process mill feed from Cochrane Hill and Beaver Dam projects in Nova Scotia.
The study has confirmed that the processing hub is a preferred development approach. The integration of the Cochrane Hill project with the 15-Mile processing hub confirms the optimal development is a 3 Mtpa processing plant at 15-Mile (relocated from Touquoy with the substitution to a larger ball mill) with mill feed from Beaver Dam and Cochrane Hill transported by road.
The study also confirmed a long life, stable, one hundred kozpa production profile. The estimated average gold production of about 106 kozpa over an 11-year mine life (not including inferred resources, exploration targets or future regional potential). The project will also involve an estimated low initial capital of C$251 million (A$279 million) with 3 Mtpa throughput rate (consistent with the Touquoy historical processing rate) achievable through incorporating a new 5.5MW ball mill to replace the existing 3.5MW ball mill.
The study also estimated LOM all-in sustaining costs (AISC) averaginf US$1,197 per ounce (A$1,898 per ounce) with low strip ratios and high gold recoveries from conventional CIL based on the previous operating experience from Touquoy and overheads shared across the three operations. Overall, the study found the project had strong economics, with an estimated post-tax NPV5% improves to approximately A$1,084 million and estimated IRR improves to approximately 76% (using a gold price of US$2,500/oz and exchange rates of C$1.00 = US$0.70 and C$1.00 = A$1.11.
The project was also found to have a dramatically reduced environmental disturbance, where opportunity has been taken to incorporate significant reductions in the surface disturbance at each site, incorporating feedback from previous community engagement: 15-Mile disturbance footprint has been reduced by approximately one-third; Beaver Dam disturbance footprint reduced by more than half and the previous haul road construction disturbance is no longer required; Cochrane Hill disturbance footprint substantially reduced, with the requirement for water extraction removed, no tailings management facility required, and the previous proposed road realignment no longer required; and Clean-up of the historical tailings across each deposit will significantly reduce existing baseline ground and surface water impacts and enable the creation of new improved fish habitat.
The company has begun a pre-feasibility study (PFS), which they expect to complete in the third quarter of fiscal year 2026. Both federal and provincial governments have committed to avoiding duplicate approvals. For instance, the Nova Scotia government has added gold to Nova Scotia’s list of ‘Strategic Minerals’ and created a specialist Large Industrial File Team within the Department of Environment and Climate Change to manage large projects—a development the company regards as positive.
St Barbara’s managing director and CEO Andrew Strelein said: “The detailed work we’ve undertaken through the concept study means we can target throughput of 3 Mtpa and stable gold production exceeding 100,000 ounces per year at the combined operations.”
He continued: “This is underpinned by the integration of the Cochrane Hill deposit into the existing 15-Mile and Beaver Dam developments, forming the new 15-Mile processing hub project. As part of this reassessment, the Cochrane Hill project has been significantly redesigned to reduce its environmental footprint and community impact, with removal of the need for tailings management and processing facilities at that site. This comprehensive redesign allows Cochrane Hill to contribute to the regional production profile while aligning with environmental and social considerations. Each development is now designed more comprehensively with mine closure and final landform planning in mind.”
Strelein added: “With the addition of Cochrane Hill, the proposed processing facility at 15-Mile was well suited for a throughput expansion from 2.1 Mtpa to 3 Mtpa – still recycling the Touquoy process plant but with substitution of a larger ball mill. The concept study estimates that the incorporation of Cochrane Hill will contribute an additional 370koz of production to the 15-Mile processing hub, bringing the LOM gold production to an estimated 1.2 million ounces.
“The addition of Cochrane Hill comes at a low anticipated capital cost of C$91M that occurs in year six of the 15-Mile processing hub. The low capital costs are a result of a simplified, efficient project design with minimal infrastructure and environmental disturbance. The 15-Mile processing hub approach leverages existing public roads to truck mill feed to the 15-Mile processing facility, eliminating the need for a processing plant, tailings management facility and any new roads at Cochrane Hill.”
Learn more on the company’s website, www.StBarbara.com.au.
