S&P/ASX 300 Index (ASX: XKO) gold stock St Barbara Ltd (ASX: SBM) is sliding today.
With the gold price remaining in a medium-term downtrend, the stock joins most ASX gold miners in the red on Tuesday, which sees the S&P/ASX All Ordinaries Gold Index (ASX: XGD) down 1.3%.
St Barbara shares closed yesterday trading for 46.5 cents. In early morning trade on Tuesday, shares are changing hands for 45.5 cents apiece, down 2.2%. That leaves the St Barbara share price up 51.7% over the past 12 months.
For some context, the ASX 300 is down 0.3% at this same time today and up a much more modest 1.8% over the last year.
St Barbara shares are sliding today despite a positive Mineral Resource Estimate update from the company's 15-Mile Processing Hub Project, located in Canada.
Here's what we know.
Image source: Getty Images
ASX 300 gold stock boosts gold reserves
St Barbara's 15-Mile Processing Hub Project will process ore from the miner's three nearby mines. Namely, the 15-Mile Mine, the Old Austen Mine, and the Old Mitchell Mine.
This morning, the miner revealed a 500,000 ounce (0.5 Moz) increase in the Mineral Resources Estimate for the 15-Mile Processing Hub Project.
That represents a 20% increase, bringing the Mineral Resources Estimate to 62.4 million tonnes at 1.2 grams of gold per tonne containing 2.5 million ounces.
The ASX 300 gold stock said the half-million-ounce upgraded estimate incorporated updated geological interpretations, a revised estimation methodology, and additional historical drilling data.
That historical drilling data came from 436 additional drill holes for an extra 71,000 metres, which were not previously incorporated into Mineral Resources estimates across the three mines.
Following a detailed review, management concluded that the historical drilling was suitable for inclusion in the Mineral Resources Estimate.
The ASX 300 gold stock now aims to release an updated Pre-Feasibility Study, which it expects to be finalised by the end of September. It will then proceed with an updated Ore Reserves Estimate for the 15-Mile Processing Hub.
St Barbara will incorporate the updated Mineral Resources Estimate into the project's Feasibility Study, due in June 2027.
Looking ahead, the miner said it has identified new drill targets at the 15-Mile Mine, which are being evaluated for drilling in FY 2027.
With the latest upgrade included, St Barbara's total Mineral Resources Estimate has increased to 5.4 million ounces, which includes the 2.9 million ounces attributable at its JV New Simberi project, located in Papua New Guinea.
What did management say?
Commenting on the increased Mineral Resource Estimate that's yet to lift the ASX 300 gold stock today, St Barbara CEO Andrew Strelein said:
This is a substantial increase in resources at 15-Mile Processing Hub that continues the momentum we have at our Atlantic Operations following the environmental permit approvals and the final investment decision on the Touquoy Restart in April.
The Mineral Resources growth of 0.5 million ounces is related to study work that now incorporates updated geological interpretations, a revised estimation methodology and additional historical drilling data.
