Company Moves Ahead With Plan to Process Leftover Ore at Idled Nova Scotia Gold Mine

The company behind a plan to process stockpiled ore at Nova Scotia’s idled Touquoy gold mine says it has already signed contracts worth $56 million with two rural companies to support the reopening.

Atlantic Mining Nova Scotia, a subsidiary of Australia-based St Barbara Ltd., was granted industrial approval by the provincial Environment Department on April 10. The gold mine, about 70 kilometres northeast of Halifax, is expected to begin processing later this year and ship gold to the Royal Canadian Mint starting next year.

Ore processing is expected to last 14 months, creating about 200 jobs.

The Environment Department says the open pit mine at Moose River, N.S., has about three million tonnes of unprocessed ore that was left behind when operations stopped in September 2023 after five years of production. A cleanup of the site began the following year.

Atlantic Mining says the ore is believed to contain about 38,000 ounces of gold, which at current prices would be worth more than $200 million.

The Nova Scotia government says there won’t be any new mining at the site, and all of the waste will be dumped into the open pit. As well, the government says the work is expected to contribute about $150 million to the province’s economy.

Meanwhile, the cleanup of the mill area will be paused while the remaining ore is processed, but reclamation work will continue in other areas.

The province holds a $79.9-million bond from Atlantic Mining to ensure full reclamation is completed as required under the Environment Act.

The mining company recently applauded a new deal between Ottawa and Nova Scotia aimed at simplifying federal and provincial environmental approvals for major infrastructure and resource projects.

Prime Minister Mark Carney and Premier Tim Houston signed an agreement in late March when the prime minister was visiting Halifax.

The agreement on environmental assessments is aimed at removing duplication, shortening review times and increasing regulatory clarity. The types of projects that typically need approvals from both levels of government include energy transmission lines that cross provincial boundaries, airports, marine terminals and ports, pipelines and some mining projects.