Vault Minerals Limited (ASX:VAU) has cleared major regulatory hurdles for the proposed Southern Tailings Management Facility (STMF) at its Sugar Zone gold mine in Ontario, Canada, supporting the project’s planned restart and longer-term operations.
The Ontario Ministry of Energy and Mines formally filed the company’s Closure Plan Amendment on July 16, while the Ministry of Environment, Conservation and Parks issued the final amended Environmental Compliance Approval on July 22.
The environmental approval authorises the discharge of tailings into the STMF, allowing Vault to advance construction of the facility.
Lower-cost tailings solution
The STMF is expected to serve as Sugar Zone’s sole tailings storage facility over the life of the current ore reserve.
The facility will provide a more capital-efficient and lower-cost operating solution than the previous combination of dry-stack tailings and slurry deposition within the Northern Tailings Management Facility.
The approvals represent important milestones as the company progresses preparations for the restart of mining operations at Sugar Zone.
Construction activities advance
Site preparation is well advanced, with vegetation clearing and logging at the STMF completed.
Construction during the 2026 Canadian summer season will focus on grubbing, foundation earthworks for the dam, drainage installation, access roads, laydown areas and non-contact water diversion channels.
Primary dam construction and pipeline installation are scheduled to be completed during the 2027 Canadian summer construction season.
Underground development began on July 1, 2026, with waste rock generated during FY27 to supplement existing stockpiles and provide construction material for the dam.
Genesis Minerals (ASX:GMD) and Vault Minerals agree merger to create top-three Australian gold producer
As work progresses, Genesis Minerals (ASX:GMD) and Vault recently entered into a binding Scheme Implementation Deed for a merger that would create a top-three Australian gold producer.
The transaction will be implemented through a Vault scheme of arrangement and is expected to establish a combined group producing about 600,000 to 700,000 ounces of gold annually, with all immediate production located in Western Australia.
The merger is also expected to provide further growth potential through the optimisation of the companies’ complementary asset portfolios and the realisation of operational synergies.
Vault’s board has unanimously recommended the Genesis proposal following the termination of its previous scheme implementation deed with Regis Resources, dated May 4, 2026.
As a result of that termination, Vault is required to pay Regis a break fee of approximately A$50.7 million.
Genesis executive chair Raleigh Finlayson said: “This transaction represents a truly logical combination of assets to create the third largest Australian gold producer, and represents a genuine win-win for all shareholders and stakeholders, unlocking significant unique synergies through the optimisation of complementary assets. We are creating a strong platform for continued growth and shareholder returns.”
About Vault Minerals
Vault Minerals is an ASX-listed gold company with a portfolio of operations and development assets, including the Sugar Zone mine in Ontario.
The latest approvals strengthen the development pathway for Sugar Zone and allow the company to move ahead with critical tailings infrastructure required to support future production.