St Barbara Limited has secured regulatory approval to restart its Touquoy gold processing facility in Nova Scotia, marking a significant milestone for the company’s operational recovery. The Nova Scotia Department of Environment and Climate Change approved amendments to the Industrial Approval permit conditions on 13 April 2026, clearing the pathway for ore processing to recommence by the end of calendar year 2026. This approval validates the company’s restart strategy and removes a critical regulatory hurdle that could have delayed the project further.
The economics of the Touquoy Restart demonstrate why this approval carries weight for investors. St Barbara expects to generate C$118 million in operating cash flow at US$4,000 per ounce from processing 3.0 million tonnes of stockpiles grading 0.4 grams per tonne. The operation will produce approximately 38,000 ounces of gold over a 13-month period with an all-in sustaining cost averaging A$2,458 per ounce. With initial capital requirements of just C$11.4 million, the restart presents an attractive cash generation opportunity with limited downside risk, particularly given the current gold price environment.
St Barbara has already positioned itself to execute quickly on this approval. In February 2026, the company’s board committed C$2.9 million for early-stage capital expenditure on longer lead time items and facility refurbishment. More importantly, the company has retained critical operational talent since shutting down Touquoy operations in October 2023. The retention of the former general manager, processing manager, mine superintendent and key environmental and community relations teams significantly de-risks the restart timeline. This human capital advantage should enable the company to ramp production more efficiently than rebuilding from scratch would allow.
Beyond the immediate project economics, the approval signals positive momentum for St Barbara’s broader Nova Scotia operations. The company is advancing the 15-Mile Processing Hub as a complementary asset to support future processing capacity. Additionally, a new co-operation agreement between the Canadian federal government and Nova Scotia Province embracing a “one project, one review” environmental assessment process could streamline permitting for future developments in the region. This regulatory evolution may reduce approval timelines for both the Touquoy operation and future expansion opportunities.
The local economic benefits underscore the project’s community value. St Barbara estimates the restart will create 197 direct, indirect and induced jobs during the 13-month production period, with a C$151 million boost to Nova Scotia’s GDP and C$169 million contribution to Canada’s GDP. Such metrics may facilitate continued regulatory cooperation and social license to operate in the jurisdiction.
Investors should monitor the progression of facility refurbishment works through the remainder of 2026 to validate the company’s end-of-year processing commencement target. Watch also for updates on recruitment for remaining operational roles and civil contractor mobilisation for stockpile movement. 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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