First Mining Gold
First Mining Files Technical Report For The Positive Pre-Feasibility Study On The Springpole Gold Project, Ontario, Canada
March 4, 2021 – Vancouver, Canada – First Mining Gold Corp. (“First Mining” or the “Company”) (TSX: FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce that the Company has filed on SEDAR an independent Pre-Feasibility Study (“PFS”) technical report (the “Report”) for its Springpole Gold Project (“Springpole” or the “Project”) located in northwestern Ontario, Canada.
The Report, entitled “NI 43-101 Technical Report and Pre-Feasibility Study on the Springpole Gold Project, Ontario, Canada” was prepared by AGP Mining Consultants Inc. (“AGP”) in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”) and has an effective date of January 20, 2021.
The PFS supports a 30,000 tonnes-per-day (“tpd”) open pit mining operation over an 11.3 year mine life (see First Mining’s news release dated January 20, 2021). Highlights include:
- US$1.5 billion pre-tax net present value at a 5% discount rate (“NPV5%”) at US$1,600/oz gold (“Au”), increasing to US$1.9 billion at US$1,800/oz Au
- US$995 million after-tax NPV5% at US$1,600/oz Au, increasing to US$1.3 billion at US$1,800/oz Au
- 36.4% pre-tax internal rate of return (“IRR”); 29.4% after-tax IRR at US$1,600/oz Au
- Life of mine (“LOM”) of 11.3 years, with primary mining and processing during the first 9 years and processing lower-grade stockpiles for the balance of the mine life
- After-tax payback of 2.4 years
- Declaration of Mineral Reserves: Probable Reserves of 3.8 Moz Au, 20.5 Moz silver (“Ag”) (121.6 Mt at 0.97 g/t Au, 5.23 g/t Ag)
- Indicated Mineral Resources (inclusive of reserves) of 4.6 Moz Au, 24.3 Moz Ag (151 Mt at 0.94 g/t Au, 5.0 g/t Ag)
- Initial capital costs estimated at US$718 million, sustaining capital costs estimated at US$55 million, plus US$29 million in closure costs
- Average annual payable gold production of 335 koz (Years 1 to 9); 287 koz (LOM)
- Total cash costs of US$558/oz (Years 1 to 9); and US$618/oz (LOM)(1)
- All-in sustaining costs (“AISC”) of US$577/oz (Years 1 to 9), and AISC US$645 (LOM)(2)
Note: Base case parameters assume a gold price of US$1,600/oz and a silver price of US$20/oz, and an exchange rate (C$ to US$) of 0.75. All currencies are reported in U.S. dollars unless otherwise specified. NPV calculated as of the commencement of construction and excludes all pre-construction costs.
(1) Total cash costs consist of mining costs, processing costs, mine-level general and administrative (“G&A”) costs, treatment and refining charges and royalties.
(2) AISC consists of total cash costs plus sustaining and closure costs.
“Springpole’s robust PFS and declaration of reserves for the first time are important achievements for the Company” stated Dan Wilton, CEO of First Mining. “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.”
PFS Overview
The Springpole Gold Project, located in northwestern Ontario, Canada, is one of the largest undeveloped open pit gold projects in North America. The Project is located approximately 110 kilometres northeast of Red Lake. Springpole currently hosts Probable Mineral Reserves of 3.8 million ounces (“Moz”) of gold , as set out in the table below.
Springpole Proven and Probable Reserves
Notes:
- The Mineral Reserve estimates for Springpole are based on the conversion of the Measured and Indicated Mineral Resources within the mine plan in the Report. Indicated Mineral Resources in the mine plan were converted directly to Probable Mineral Reserves. There are currently no estimated of Measured Mineral Resources and therefore there are no Proven Mineral Reserves.
- The Mineral Reserve estimate has an effective date of December 30, 2020 and is based on the Mineral Resource estimate that has an effective date of July 30, 2020.
- The Mineral Reserve estimate was completed under the supervision of Gordon Zurowski, P.Eng., of AGP, a Qualified Person as defined under NI 43-101.
- Mineral Reserves are stated within the final design pit based on a US$878/oz Au pit shell with a US$1,350/oz Au price for revenue.
- The equivalent cut-off grade was 0.34 g/t Au for all pit phases.
- The mining cost averaged C$2.75/t mined, processing cost averaged C$14.50/t milled, and the G&A cost averaged C$1.06/t milled. The process recovery for gold averaged 88% and the silver recovery was 93%.
- The exchange rate assumption applied was C$1.30 equal to US$1.00.
In terms of Mineral Resources (inclusive of reserves), the Project hosts 4.6 Moz of gold in the Indicated Mineral Resource category and 0.3 Moz of gold in the Inferred Mineral Resource category as set out in the table below.
Springpole Mineral Resources (inclusive of Mineral Reserves)
Notes:
- The Qualified Person for the Mineral Resource estimate is Dr Gilles Arseneau, Ph.D., P.Geo., an associate of SRK. The Mineral Resource estimate has an effective date of July 30, 2020.
- Mineral Resources are reported in accordance with the May 2014 edition of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves.
- Mineral Resources are reported inclusive of the Mineral Resources that have been converted to Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
- All figures are rounded to reflect the relative accuracy of the estimate. All composites have been capped where appropriate.
- Mineral Resources potentially amenable to open pit mining are reported within an optimized constraining shell using the following parameters:
- Metal prices of US$1,550/oz gold, US$20/oz silver, exchange rate of US$0.77:C$1
- Mining cost of C$1.62/t, processing cost of C$15.38/t milled, G&A cost of C$1.00/t milled
- Pit slopes varying between 35–50º depending on domain
- Gold recovery of 88% and silver recovery of 93%
- Mineral Resources are reported at a cut-off grade of 0.3 g/t Au.
The PFS evaluates recovery of gold and silver from a 30,000 tpd open pit mining operation, with a process plant that will include crushing, grinding, and flotation, with fine grinding of the flotation concentrate and agitated leaching of both the flotation concentrate and the flotation tails followed by a carbon-in-pulp recovery process to produce doré bars.
Important parameters of the PFS are presented in the following table:
(1) All unit operating costs are shown on both gold equivalent as well as net of silver by-product credits
(2) Cash costs consist of mining costs, processing costs, mine-level G&A, treatment and refining charges and royalties
(3) AISC includes cash costs plus sustaining capital and closure costs
The affiliation and areas of responsibility for each of the independent Qualified Persons (as defined under NI 43-101) involved in preparing the PFS, upon which the technical report is based, are as follows: Dr. Gilles Arseneau, Ph.D., P.Geo. - Qualified Person for Mineral Resource Evaluation (SRK Consulting (Canada) Inc.); Mr. Gordon Zurowski, P.Eng. - Qualified Person for Open Pit Mine Engineering and Costing, Infrastructure and Financial Modelling (AGP); Mr. Roland Tosney, P.Eng. - Qualified Person for Open Pit Geotechnical Aspects (AGP); Mr. Cameron McCarthy, P.Eng., P.Geo., P.Tech. - Qualified Person for Environmental and Social Aspects (Swiftwater Consulting Ltd.); Mr. Duke Reimer, P.Eng. - Qualified Person for Tailings and Coffer Dams (Knight Piésold Ltd.); and Dr. Adrian Dance, Ph.D., P.Eng. - Qualified Person for Mineral Processing and Recovery Methods (SRK Consulting (Canada) Inc).
Identifying potential additional resource upside at Springpole is also a focus of the Company’s 2021 work programs, with new regional exploration targets being identified and tested within the property beyond the current open pit area.
Qualified Person
Hazel Mullin, P.Geo., Director, Data Management and Technical Services of First Mining, is a “Qualified Person” for the purposes of NI 43-101, and she has reviewed and approved the scientific and technical disclosure contained in this news release.
About First Mining Gold Corp.
First Mining is a Canadian gold developer focused on the development and permitting of the Springpole Gold Project in northwestern Ontario. Springpole is one of the largest undeveloped gold projects in Canada. The results of a positive Pre-Feasibility Study for the Springpole Gold Project were announced by First Mining in January 2021, and permitting activities are on-going with submission of an Environmental Impact Statement for the project targeted for 2021. The Company also holds a large equity position in Treasury Metals Inc. who are advancing the Goliath-Goldlund gold projects towards construction. First Mining’s portfolio of gold projects in eastern Canada also includes the Pickle Crow (being advanced in partnership with Auteco Minerals Ltd.), Cameron, Hope Brook, Duparquet, Duquesne, and Pitt gold projects.
First Mining was established in 2015 by Mr. Keith Neumeyer, founding President and CEO of First Majestic Silver Corp.
For further information, please contact:
Spiros Cacos | Vice President, Investor Relations
Direct: +1 604 639 8825 | Toll Free: 1 844 306 8827 | Email: info@firstmininggold.com
www.firstmininggold.com
Source: https://firstmininggold.com/news/releases/first-mining-files-technical-report-for-the-positive-pre-feasibility-study-on-the-springpole-gold-project-ontario-canada
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