St Barbara Ltd is pressing ahead with its Simberi Expansion Project in Papua New Guinea, reporting progress across exploration, early works, and mine development, even as some operational challenges remain.
The company’s Simberi operations on Simberi Island produced 11,158 ounces of gold in the first quarter of FY26 at an all-in sustaining cost of A$4,487 per ounce. Production fell slightly below forecast, largely due to maintenance issues and limited availability of the contractor mine fleet.
St Barbara Managing Director and CEO Andrew Strelein said the truck fleet situation was improving. “By early October, the Volvo A60 truck fleet had increased to ten units from four, and the contract truck fleet availability finally improved. Total mining movement is on track to meet October budget and forecasts,” he said.
Expansion Project on Track
The Feasibility Study for the Simberi Expansion Project, which aims to mine multiple open pits containing 2.6 million ounces of oxide and sulphide ore over a 13-year life, is scheduled for completion in the second quarter of FY26. The Pre-Feasibility Study for the 15 Mile Processing Hub is expected in the third quarter.
However, a Final Investment Decision (FID) is now anticipated in Q3 FY26, delayed due to outstanding matters relating to amended tax assessments. While funding proposals are pending, early works continue, including:
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Expansion of the mine camp, with 140 new beds completed and another 60 underway.
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Procurement of a new 5.8MW ball mill, expected to ship in January 2026.
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Geotechnical drilling and test pitting for a new haul road to replace the existing aerial rope conveyor.
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Installation of a reverse osmosis water treatment plant to improve plant efficiency and reliability.
Other infrastructure upgrades include a planned wharf to accommodate larger ships, with contract execution expected in Q3 FY26. Power station expansion from 7MW to 19MW is also required before the new grinding circuit can be commissioned, which is scheduled for Q3 FY27.
Mine Lease Extension Secured
The Papua New Guinea Mining Advisory Committee recommended extending the Simberi Mining Lease 136 until 2038. The recommendation was forwarded to the Mining Minister for review in September 2025.
Exploration and Resource Drilling
Exploration activities at Simberi and surrounding islands continue, with both resource definition and sterilisation drilling advancing. The FY25 program completed 61 holes totalling more than 10,400 metres, while follow-up drilling in Q1 FY26 included 12 additional holes.
Recent drilling highlights include:
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Pigibo North: SDH607 – 35 metres at 1.2 g/t gold from 1 metre.
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Pigiput-Sorowar Northeast Trend: SDH669 – 31 metres at 3.1 g/t gold from 2 metres, including 13 metres at 5.8 g/t from 15 metres.
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Darum waste rock dump: SDH685 – 9 metres at 10.8 g/t gold from 55 metres, including 6 metres at 15.7 g/t from 57 metres.
Surface sampling and trenching on Tatau Island also revealed promising gold anomalies. The Mt Siro area returned high-grade results, including 26 metres at 1.0 g/t and 16 metres at 2.0 g/t gold in trenching, and 9 metres at 2.9 g/t in drilling, including 2 metres at 11.4 g/t gold. Further drilling and soil sampling are planned for FY26.
Next Steps
St Barbara plans to complete the Feasibility Study, continue early works and pre-expansion projects, and ensure compliance with environmental permits, including waste rock dump designs, water management plans, and mine closure plans.
If completed on schedule, the new ball mill will enable higher processing rates by Q3 FY27, with sulphide ore processing expected to begin in H2 FY28. The flotation circuit and first gold concentrate production are anticipated at the start of FY29.
The company is moving steadily toward expanding production and securing the long-term future of its Simberi operations, while maintaining a focus on environmental compliance and sustainable development.
