St Barbara Limited has released an updated Pre-Feasibility Study for its 15-Mile Processing Hub Project that delivers a materially stronger investment case, with ore reserves climbing 17% to 1.44 million ounces and the mine life extended to 13 years based on proved and probable reserves alone. The updated study, which incorporates the company’s expanded mineral resource estimate released in July, positions the Nova Scotia project as a compelling gold development opportunity with substantially improved economics compared to the previous feasibility assessment from January 2026.
The enhanced production profile underpins the improved economics. The life-of-mine gold production has increased to 1.4 million ounces, representing an addition of 203,000 ounces relative to the earlier iteration. The project will deliver annual production exceeding 120,000 ounces in fiscal 2031 and 2032, with a life-of-mine average of 106,000 ounces per annum. These production figures are particularly noteworthy given the low-cost profile of the operation, with all-in sustaining costs averaging just US$1,098 per ounce across the life of mine, underpinned by open pit mining with strip ratios averaging 2.8:1 and demonstrated operating experience from the adjacent Touquoy mine.
The capital efficiency of the project strengthens its appeal. Initial development capital is estimated at C$289 million, equivalent to A$315 million, remaining well within the previous guidance and representing a de-risked project design. This capital discipline, combined with the expanded reserve base and extended mine life, delivers a 21% uplift in net present value relative to the January study. At current gold price assumptions of US$3,000 per ounce, the project generates a post-tax NPV of A$1,705 million with an internal rate of return of 81.6%. Should gold prices trend higher to US$4,000 per ounce, the post-tax NPV reaches A$2,721 million with an IRR of 121.4%, illustrating the significant leverage to gold prices that this development offers.
Funding for the project is well-secured through multiple sources. The company enters the next phase with A$427 million in cash as of August 31, 2026, supplemented by anticipated cashflow resumption from the Touquoy restart operations commencing in the March 2026 quarter. Additionally, St Barbara has announced an agreement to sell its remaining stake in the New Simberi Gold Project for A$453 million in cash plus royalties, providing further financial flexibility should it be required. The company has also accelerated its Feasibility Study timeline, now targeting completion in the March 2027 quarter, with a Final Investment Decision expected in the June 2027 quarter.
Investors should monitor progress toward the accelerated feasibility milestones and any developments regarding the Touquoy restart, which represents a critical near-term catalyst for operational cashflow. The company’s ability to execute on both its existing mine and the 15-Mile development in parallel will be key to value creation. This announcement is price sensitive and has been flagged as material by the ASX.
View the full ASX announcement (PDF)
About St Barbara Limited (ASX: SBM)
St Barbara Limited is an Australian-based gold mining company with operations in Canada and Papua New Guinea. The company operates the Atlantic Operations in Nova Scotia, Canada, which includes the Touquoy mine, and the Simberi Operations in the province of New Ireland, Papua New Guinea. The company engages in the exploration, development, mining, and sale of gold, with additional interest in silver exploration.
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