NexGold Mining (TSXV: NEXG; US-OTC: NXGCF) secured industrial approval from Nova Scotia for its Goldboro project, clearing one of the last provincial hurdles to a planned construction start next year.
The decision follows seven years of consultation and the project’s environmental assessment approval in June 2022. Goldboro is outlined as a 15-year mine, including 11 years of operations, on a mix of Crown and company land that includes a 7.8-sq.-km Crown lease.
“We’re extremely pleased to receive industrial approval for Goldboro, one of the final permits before construction,” CEO Kevin Bullock said in a news release Wednesday. “It’s a key step as we advance toward building and operating the mine.”
The approval lands as Nova Scotia rolls out a staged approach to mine permitting aimed at speeding start-ups while keeping environmental safeguards. NexGold has benefits agreements with Guysborough district municipality and the Assembly of Nova Scotia Mi’kmaw Chiefs, positioning the project within a push for local participation.
Advanced asset
The project is a brownfield development in a historic camp: the Boston Richardson mine at Goldboro produced roughly 54,871 oz. between 1893 and 1910.
Goldboro is to produce about 100,000 oz. gold a year over a 10.9-year mine life, according to the 2022 feasibility study. It hosts proven and probable reserves of 15.8 million tonnes at 2.26 grams gold per tonne for 1.15 million ounces of the yellow metal.
The project has an initial capital outlay of $271 million and a life-of-mine all-in sustaining cost at about US$849 per ounce.
Staged planning
The staged model enables plans, such as erosion and sediment control, to be filed after approval but before ground is broken, according to provincial Environment Minister Timothy Halman. The goal is providing clearer timelines without compromising standards. Regulatory scrutiny remains in place throughout the mine’s life, officials said.
Industrial approvals set the operating conditions for mines and Goldboro’s comes with strict terms. Provincial regulators said oversight is to continue through construction, operations, closure and reclamation, with the Department of Environment and Climate Change’s large industrial file team monitoring compliance.
Company estimates peg the project’s impact at $1.1 billion (US$800.3 million) in household income in Nova Scotia over 15 years and about $528 million in tax revenue — including $274 million provincially, $44 million municipally and $209 million federally.
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