Signal Gold shares rise on government green light for Nova Scotia project 

Shares of East Coast-focused Signal Gold (TSX: SGNL) rose 17% Wednesday on the news that its Goldboro gold project has been approved by the Nova Scotia government. 
 
The environmental assessment approval, announced by the provincial Minister of Environment and Climate Change Timothy Halman, will allow the Toronto-headquartered miner to start applications for its industrial approval and Crown Land and mining leases for Goldboro, Signal said in a news release. 
 
Kevin Bullock, Signal Gold president and CEO, said that the company is grateful for the support from Halman and others and that receiving environmental approval for Goldboro is an important milestone and the result of five years of baseline monitoring and analysis. 
 
“Goldboro…will have a significant socio-economic impact on the region and the province,” he said. “We recognize that a mining project is a temporary use of land, and we are committed to sustainably developing a project that mitigates environmental impact at every phase, including construction, operations, reclamation and closure. 

Signal Gold’s Goldboro gold property in Nova Scotia. Credit: Signal Gold.

“Importantly, we remain committed to working with Mi’kmaq, community members, regulators, and other stakeholders, as we progress towards the next steps to developing Nova Scotia’s next gold mine, the largest private sector development project in the province,” he added. 
  
According to a January 2022 feasibility study, Goldboro will produce more than 1.1 million oz. of gold over an 11-year open pit mine life. The mine, located about 175 km northeast of Halifax near Issac’s Harbour, would produce roughly 100,000 oz. per year at an average diluted grade of 2.26 grams gold per tonne.  

Initial capital costs are estimated at $271 million, with average all-in sustaining costs forecast at $1,062 per ounce. 

At a gold price of $2,200 per oz., the mine could produce after-tax net cash flows of about $684 million, an after-tax net present value (at a 5% discount rate) of more than $442 million and an internal rate of return of 31.7%.  

Signal estimates construction would start in late 2023 and commissioning in 2025. Initiation of closure would begin in 2036. 
 
In a letter posted on a provincial government portal on Tuesday, Halman said he approved the Goldboro project subject to the conditions laid out in the Environmental Assessment Approval. 
 
“I am satisfied that any adverse effects or significant environmental effects of the undertaking can be adequately mitigated through compliance with the attached terms and conditions as well as through compliance to the other licenses, certificates, permits and approvals that will be required for operation,” he said. 
 
The company said it was reviewing those conditions and all comments provided by rights holders and community stakeholders through the environmental assessment process. 

In addition to Goldboro, the miner operates its producing Point Rousse gold mine in north-central Newfoundland and is exploring at the Tilt Cove gold-copper project about 45 km north of Point Rousse.  

The company changed its name from Anaconda Mining to Signal Gold in May.

Signal Gold shares were trading at 47¢ at press time in a 52-week window of 32¢ and 94¢. Signal has a market cap of $91 million.