ASX-listed St Barbara has confirmed it will move the proposed restart of the Touquoy gold operation in Nova Scotia into the permitting phase, after a new study outlined a low capital expenditure near-term restart plan underpinned by revived provincial support for natural resource projects and a sharply higher gold price environment.

The miner on Wednesday released the results of its Touquoy restart study, which reinstates a three-million-tonne ore reserve at 0.4 g/t for 43 000 oz and outlines a 13-month operating plan producing 38 000 oz of gold from existing medium- and low-grade stockpiles.

Touquoy stopped operating in 2023 after the company was unable to obtain permits required for ongoing production. Since then, the processing plant has been held in ‘hot’ care and maintenance, and reclamation activities have continued at site.

The study confirms a highly capital-efficient restart, requiring only about C$11.4-million in upfront capital to reactivate the existing Touquoy plant and implement a new in-pit tailings deposition plan. All-in sustaining costs are forecast at $1 598/oz.

At a gold price of $3 000/oz, the restart delivers an estimated pre-tax net present value (NPV) of C$60.3-million and an internal rate of return (IRR) of 564%. At $4 000/oz, the pre-tax NPV grows to C$109.3-million, with an IRR of 1 428%.

The operation is expected to contribute roughly C$151-million to Nova Scotia’s GDP at $3 000/oz gold and support about 197 direct, indirect and induced jobs over its 13-month run.

St Barbara said recent improvements in Nova Scotia’s permitting environment — including the creation of a Larger Industrial File Team within the provincial regulator — have opened a clearer pathway for the restart. Initial permitting scoping work is under way.

“The improved permitting environment in Nova Scotia, combined with a clear and constructive regulatory process, has created the opportunity for Touquoy to return to production in a responsible and timely manner,” said MD and CEO Andrew Strelein.

He said the restart offered a low-cost, near-term source of cash flow while preserving the company’s rehabilitation commitments and long-term plans, including eventual relocation of the processing facilities for the 15-Mile project.

The restart will reactivate the Touquoy processing plant to treat stockpiled ore, with tailings deposited in the existing pit. The six-month construction and recommissioning window is supported by the retention of key operational, technical and community-relations staff through care and maintenance.

Reclamation activities will continue alongside processing, with stockpile removal enabling tailings storage deep below the waterline in the openpit. The potential for a future closed-loop pumped hydro energy project at Touquoy also remains intact.

Touquoy, located 63 km north-east of Halifax, operated between 2017 and 2023 and is one of several St Barbara projects in Nova Scotia, alongside 15-Mile, Beaver Dam and Cochrane Hill.