St Barbara finds better economics, higher output at same capital cost for 15-Mile
ASX-listed gold producer St Barbara has released an updated prefeasibility study (PFS) on its 15-Mile Processing Hub project, in Nova Scotia, which will combine three historical gold mines into a single integrated operation.
The updated PFS is based on ore reserves of 1.4-million ounces, which increased by 17% compared with the prior PFS published in January. The project's net present value (NPV) has increased by 21% to A$1.7-billion at base case prices in the latest assessment, while the internal rate of return (IRR) is estimated at 81.6%.
Using spot prices, the project's NPV increases to A$2.7-billion and the IRR widens to 121%.
The 15-Mile project's lifespan is extended to 13 years based on proved and probable reserves, compared with about 11 years envisioned in the prior PFS. This while the life-of-mine gold production estimate increased by 203000 oz to 1.4-million ounces.
Gold production is poised to average 106 000 oz/y.
St Barbara has also derisked the project's development in the meantime, estimating an initial capital investment requirement of C$289-million, or A$315-million, which is on par with the prior PFS but with improved production rates.
Owing to low openpit strip ratios, strong recoveries from conventional free-milling ores and shared infrastructure across three mine sites, 15-Mile has a low all-in sustaining cost profile averaging $1098/oz, or A$1685/oz, over the project's lifetime.
The updated PFS estimates stronger project economics based on a more refined design while remaining within the scope of St Barbara's current regulatory submissions.
A feasibility study for the 15-Mile Processing Hub is expected during the third quarter next year, which should contribute to a final investment decision by end-June, 2027.
