Wildfires erupt in Canada crude patch in threat to oil sands
One 7-acre fire is within about 6 miles of MEG Energy Corp.’s Christina Lake site, which produced almost 100,000 barrels a day in May.
Australian gold producer St Barbara (ASX: SBM) announced on Tuesday the completion of a prefeasibility study for its 100% owned 15 Mile project located in Trafalgar, Nova Scotia.
According to the PFS, the project has an estimated capital cost of A$207 million ($133 million).
15 Mile is expected to have an all-in sustaining cost of $928/oz and could produce between 55,000 oz/y and 60,000 oz/y over an 11-year mine life.
The PFS estimated a post-tax net present value of $127 million and a post-tax internal rate of return of 20.3%, using a long-term gold price of $1,092/oz.
The PFS was based on an ore reserve of 618,000 oz of contained gold and a mineral resource of 836,000 oz of contained gold.
“With this strong PFS result, St Barbara will now focus on preparation of an updated environmental and social impact assessment for this new standalone design of the 15 Mile project,” said CEO Andrew Strelein.
St Barbara currently operates the Touquoy mine northeast of Halifax, and also has operations in Papua New Guinea and Australia.
Shares of the miner rose 5% to A19¢ in Sydney on Tuesday, in a 52-week range of 17¢ and 93¢. The company has a market capitalization of A$155 million ($99 million).
