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First Mining Gold files its pre-feasibility study (PFS) for Springpole project in Ontario

Published: 07:35 05 Mar 2021 EST

First Mining Gold Corp. -
The Springpole asset is one of the largest undeveloped open pit gold projects in North America

First Mining Gold Corp (TSE:FF) (OTCQX:FFMGF) (FRA:FMG) said it has now filed its previously announced pre-feasibility study (PFS) for the Springpole gold project in Ontario, which shows the property has the potential to become a strategically significant, highly profitable gold mine.

As reported in January this year, the study envisages recovering gold and silver from a 30,000 tonne-per-day (tpd) open-pit operation, over a mine life of 11.3 years.

READ: First Mining Gold marks major milestone for Springpole asset with release of positive pre-feasibility study

Initial capital costs were put at US$718 million, while the pre-tax net present value (NPV), using a gold price of US$1,600 per ounce, was pegged at US$1.5 billion. With gold at US$1,800 per ounce, that figure rises to US$1.9 billion. The pre-tax internal rate of return (IRR) was put at 36.4%.

The average annual payable gold production was pegged at 335,000 ounces (Years 1 to 9) and 287,000 ounces over the life of mine. All-in sustaining costs (AISC) came in at US$577 per ounce (Years 1 to 9), and AISC of US$645 over the life of mine.

"Springpole's robust PFS and declaration of reserves for the first time are important achievements for the company," said Dan Wilton, the CEO of First Mining in a statement.

"The PFS is the result of the diligence, dedication and hard work by the team at First Mining and our consulting partners. This report confirms that Springpole has the potential to become a strategically significant, highly profitable gold mine in one of the most attractive mining jurisdictions in North America."

The Springpole asset is one of the largest undeveloped open pit gold projects in North America. It lies around 110 kilometres northeast of Red Lake. Springpole currently hosts probable mineral reserves of 3.8 million ounces (Moz) of gold.

Contact the author at giles@proactiveinvestors.com

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