St Barbara (ASX:SBM) completed the pre-feasibility study for the 15-Mile processing hub project in Nova Scotia, Canada, which projected life-of-mine all-in sustaining costs averaging $1,188 per ounce, according to a Wednesday Australian bourse filing.

The study estimates a post-tax net present value of AU$1.4 billion at a 5% discount rate and post-tax internal rate of return of over 80% at a $3,000-per-ounce gold price, and a post-tax net present value of AU$2.30 billion at a 5% discount rate and post-tax internal rate of return of more than 122% at $4,000-per-ounce gold price.

The study included average annual gold production of 103,000 ounces over a mine life of at least 11 years, based only on proved and probable ore reserves.

The project includes three operating locations, with all ore processing and tailings management occurring at 15-Mile, while the Beaver Dam and Cochrane Hill mines are to operate as satellite mines, the filing said.

The company's shares jumped nearly 19% in recent trading on Wednesday and earlier hit their highest since July 2021.