Australian miner St Barbara has updated the prefeasibility study (PFS) for the 15-Mile and Beaver Dam projects at its Atlantic operations in Nova Scotia, Canada.

The study consolidates the projects and uses fresh assumptions, such as utilising a relocated Touquoy processing plant at a 2.1-million-tonne-a-year capacity.

Over 11 years, the project will produce 74 000 oz at an all-in sustaining cost of $1 025/oz.

Relocating a substantial portion of the Touqouy process plant keeps the initial capital investment low at C$194-million, including a C$26-million contingency.  An additional capital cost of C43-million is planned for the fifth year to bring the 450 000 oz Beaver Dam satellite pit development on line.

The optimised project study delivers a post-tax net present value, using a 5% discount, of C$411-million and a post-tax internal rate of return of 37.3% using a long-term gold price of $2 000/oz.

The results, St Barbara says, are very attractive, offering a capital-efficient project with strong economics, should the permitting environment improve in Canada, and in particular Nova Scotia, under the proposed Canadian Federal regulatory environmental approvals reforms.

The project will make a significant economic contribution to the province, with capital construction costs of about C$200-million in the first year after environmental approvals, and a further C$1.03-billion in spending over the project’s planned operating life.

St Barbara notes that more than 1 000 direct jobs will be created in the construction phase, followed by more than 200 direct jobs in the operating phase.

“These results not only highlight the significant projected returns and cost savings but also reinforce our commitment to sustainable development. We have applied various integrated innovative approaches to minimise our ecological impact while maximising the development’s capital and operational efficiency,” states MD and CEO Andrew Strelein.

The Beaver Dam project is located about 15 km north-east of the Touquoy mine and the 15 Mile project is located a further 25 km north-east of Beaver Dam