St Barbara Limited (ASX:SBM) Confirms 15-Mile Processing Hub Development
Concept Study Confirmation
St Barbara Limited (ASX:SBM) announced the confirmation of a 3 Mtpa processing plant at the 15-Mile site, integrating the Cochrane Hill Project. The Concept Study validates this as the preferred development approach, relocating the processing plant from Touquoy and incorporating a larger ball mill.
Financial Performance
The project estimates an initial capital expenditure of approximately C$251 million (A$279 million) with a throughput rate of 3 Mtpa. Over the mine’s 11-year life, average gold production is projected at around 106 kozpa. The Life of Mine All-In Sustaining Costs are estimated at US$1,197 per ounce (A$1,898 per ounce), supported by low strip ratios and high gold recoveries. Project economics show a post-tax NPV@5% of approximately A$1,084 million and an IRR of 76% at a gold price of US$2,500 per ounce.
Environmental Enhancements
Significant reductions in environmental disturbance have been incorporated into the project design. The 15-Mile footprint has been reduced by one-third, Beaver Dam by over half, and Cochrane Hill’s footprint has been substantially minimized, eliminating the need for water extraction and tailings management facilities. These redesigns aim to rehabilitate historical tailings and improve fish habitats.
Future Outlook
A Pre-Feasibility Study (PFS) is underway, expected to be completed in Q3 Mar FY26. The permitting environment in Canada and Nova Scotia has improved, with both Federal and Provincial governments committed to streamlined approvals. Nova Scotia has added gold to its list of ‘Strategic Minerals’ and established a specialist Large Industrial File Team to support large projects.
Executive Comments
Managing Director and CEO Andrew Strelein stated, “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. This comprehensive redesign allows Cochrane Hill to contribute to the regional production profile while aligning with environmental and social considerations.”
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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