Goldboro gold mine will be first test of Nova Scotia's new regulatory rules

The company hoping to open Nova Scotia's next gold mine says the province has accepted its application for industrial approval, meaning the environment minister will issue a decision about the project's future within 60 days.

NexGold Mining Corp. said in a news release Tuesday that its Goldboro Gold project is now under review for industrial approval — the final provincial regulatory hurdle that must be overcome before operations can get underway.

"This is a major milestone that paves the way for the potential development of the Goldboro Gold Project," Kevin Bullock, NexGold's president and CEO, said in the news release.

Bullock told CBC News in an interview that he received a letter from the province indicating the application was accepted as complete on Friday – the same day the province announced it is changing its industrial approval process for metal mines with the aim of speeding up approvals.

Bullock said those changes were instrumental in moving the Goldboro project forward. The company first applied for industrial approval in August 2023.

One of the most prominent changes to the regulatory process is that more than a dozen requirements were dropped from the industrial approval application. The requirements that include noise and air quality monitoring plans will now be required at various stages following approval, once the project has moved on to site preparation, construction and operation.

"This phased approach allows us to keep things moving and for a junior [company] of our size, without any operating mines or income, that time is very, very helpful, and time is money," he said.

Bullock said the province's acceptance of the application will make it easier for NexGold to now pursue financing through investors and debtors. He said he expects the project will need $350 to $400 million to get going, but he added that a final feasibility study is on the horizon and could reveal a different cost. 

Bullock said the Goldboro project needs two additional federal approvals, and he expects decisions from Ottawa this summer.

'Things have really sped up'

The regulatory changes are part of a broader push from the Nova Scotia government for more resource development, which Premier Tim Houston started talking about earlier this year.

Bullock said he's noticed a marked change in pace for mining projects since then.

"Since the premier of Nova Scotia stood up and said, 'Let's take the no out of Nova Scotia' ... things have really sped up."

Provincial legislation sets a 60-day deadline for a decision on industrial approvals once a complete application is accepted. 

The Goldboro project would comprise two open-pit mines. It received environmental approval in 2022 under NexGold's previous name, Signal Gold.

Earlier this year, the province granted a 779-hectare lease of Crown land to the Goldboro project. It had previously secured mineral exploration and extraction licences, and signed community benefit agreements with the Assembly of Nova Scotia Mi'kmaw Chiefs and the Municipality of the District of Guysborough.

The project has been hotly criticized by environmentalists who are worried about the destruction of natural habitat, including wetlands, and the risk of arsenic contamination to waterways and groundwater from mining operations.

Last year, the company applied to Environment and Climate Change Canada for approval to use seven water courses for mine waste disposal. According to the federal department, the disposal would impact about 0.27 hectares of fish habitat. Ottawa has not yet released a decision.

NexGold has said it expects the project to last 15 years, including 11 years of mining.

Nova Scotia has a long history of gold mining, particularly in the Goldboro area of Guysborough County, although there are currently no operational gold mines. 

The Touquoy mine near Moose River, N.S., is the most recent example. It started operating in 2017 and wrapped up in 2023. It's now in reclamation, although the company behind the operation is in a legal dispute with the province about how to clean up the site.

The province is undertaking cleanups at several former gold mine sites.