Guess which ASX 300 gold stock is outperforming following ‘a significant step forward’ in Canada

S&P/ASX 300 Index (ASX: XKO) gold stock St Barbara Ltd (ASX: SBM) is pushing higher today.

St Barbara shares closed yesterday trading for 67.5 cents. In early morning trade on Friday, shares are changing hands for 67.7 cents apiece, up 0.3%.

For some context, the ASX 300 is down 0.2% at this same time, while the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down a steeper 0.7%.

Here’s what catching investor interest.

ASX 300 gold stock moving forward in Canada

St Barbara shares look to be getting a boost today after the ASX 300 gold stock announced the approval of a Final Investment Decision (FID) to proceed with the Touquoy Restart.

Located in Canada, St Barbara’s Touquoy gold mine was placed into care and maintenance in October 2023.

The formal FID approval comes after the Nova Scotia Department of Environment and Climate Change (NSECC) earlier this month approved amendments to the Industrial Approval permit conditions to allow the mine’s restart.

The ASX 300 gold stock said that its subsidiaries have now signed contracts with two local companies (Alva Construction and MacGregor’s Industrial) to provide support services for the reopening process.

What did St Barbara management say?

Commenting on the FID, St Barbara managing director and CEO Andrew Strelein said, “The processing of stockpiled ore at Touquoy is a significant step forward for St Barbara in Nova Scotia.”

Strelein continued:

It demonstrates the province is open to investment in resources projects, will provide for nearly 200 new jobs within the province and add to the province’s growing GDP all while responsibly managing our shared environment.

Nova Scotia Minister of natural resources and renewables Kim Masland added, “I am pleased to see that the contracts being signed will employ Nova Scotians, especially in rural areas, and keep them working here, close to home.”

What’s been happening with the ASX 300 gold stock’s Touquoy mine?

St Barbara has been working to restart the project for some time now.

The ASX 300 gold stock allocated C$2.9 million (AU$3.0 million) to facilitate the refurbishment of the Touquoy processing facility in February.

The company expects operating cash flow from Touquoy to be C$118 million at US$4,000 per ounce over a 13-month period. It anticipates gold production of 38,000 ounces over the 13 months, coming from 3.0 million tonnes of stockpiles that grade at 0.4 grams of gold per tonne.

The ASX 300 gold stock expects to recommence ore processing at Touquoy by the end of calendar year 2026.

The miner is also active in Papua New Guinea, where it forecasts fourth quarter gold production in the range of 14,000 to 17,000 ounces from its joint venture New Simberi Gold Project.

The post Guess which ASX 300 gold stock is outperforming following ‘a significant step forward’ in Canada appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.