How St Barbara’s 15-Mile Hub Could Transform Nova Scotia’s Economy

Prefeasibility Study Progress and Economic Impact

St Barbara Limited is making steady progress on its 15-Mile Processing Hub prefeasibility study, targeting completion by the third quarter of the 2026 financial year. This study aims to integrate the Cochrane Hill deposit with the previously proposed 15-Mile and Beaver Dam projects, but at a higher throughput capacity. Led by Ausenco Engineering Canada Inc, with mine design support from Moose Mountain Technical Services, the study is refining project layouts, metallurgical testing, and environmental assessments.

Importantly, updated socio-economic analysis suggests the 15-Mile Processing Hub could contribute a 1% boost to Nova Scotia’s annual GDP, representing half of the province’s ambitious 2% growth target. This underscores the project’s potential significance not only as a mining operation but also as a driver of regional economic development.

Reclamation and Closure Activities at Touquoy

Closure and reclamation efforts at the Touquoy mine have advanced well, with A$12 million spent on reclamation works during FY25, bringing total expenditures since closure to A$18 million. These efforts have been supported by favourable weather conditions and engineering studies that have identified opportunities to reduce final reclamation costs by approximately A$7 million. This anticipated reduction will be reflected in the next reclamation bond estimate submission due in Q4 FY26.

Additionally, gold sales of A$14 million were generated from the decommissioning of the Touquoy processing plant during FY25, providing a valuable cash inflow amid closure activities.

Innovative Energy Storage and Solar Initiatives

St Barbara is also advancing a conceptual design for an 80MW Pumped Hydro Open Pit Energy Storage facility at the Touquoy site, developed in collaboration with GEMTEC Consulting Engineers and Scientists Limited. This closed-loop system would utilize the existing open pit as the lower reservoir and a newly constructed upper reservoir, offering an estimated 6.5-hour generation cycle and a lifespan of around 40 years.

This project aligns with Nova Scotia’s Clean Power Plan, which calls for significant grid-scale energy storage to balance renewable energy supply and demand. Compared to lithium-ion battery alternatives, the pumped hydro facility promises longer operational life and potentially lower costs over time. Parallel studies are also exploring the viability of a solar power generation facility on cleared areas of the Touquoy site, further enhancing the renewable energy profile of the operation.

Corporate Restructuring and Asset Valuation Adjustments

In a strategic move, St Barbara has restructured its Nova Scotia subsidiaries, separating future gold development projects; including 15-Mile, Beaver Dam, Cochrane Hill, and the Touquoy Mill; into a new entity focused on growth opportunities. The existing subsidiary will concentrate on Touquoy’s reclamation and the renewable energy projects, seeking partnerships with renewables-focused investors.

This restructuring prompted a non-cash carrying value reduction of approximately C$33.7 million (A$37.8 million) related to exploration tenements and freehold land, reflecting updated valuations and market precedents. This adjustment will be recorded in the FY25 financial statements.

Strategic Review of Atlantic Gold Operations

St Barbara continues to evaluate options for the separation or divestment of its Atlantic Gold operations. Third-party non-binding indicative proposals are due imminently, with the company planning to assess these alongside alternative separation strategies in the first quarter of FY26. While the final decision remains pending, St Barbara affirms the significant value it sees in Atlantic’s resource base, infrastructure, and exploration potential.

This strategic review reflects a broader industry trend of portfolio optimisation, as companies seek to focus on core assets and unlock value through divestments or spin-offs.