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First Mining Announces Positive Pre-Feasibility Study for the Springpole Gold Project, Ontario, Canada

ID: 1563959
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(businesspress24) - - Pre-Tax NPV5% of US$1.5 billion, Pre-Tax IRR of 36%
- After-Tax NPV5% of US$995 million, After-Tax IRR of 29%
- Average Annual Gold Production of 335,000 ounces and AISC of US$577/oz in Years 1 through 9

January 20, 2021 - Vancouver, Canada - First Mining Gold Corp. (First Mining or the Company) (TSX: FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce the positive results of a Pre-Feasibility Study (PFS) completed for its 100%-owned Springpole Gold Project (the Project or Springpole) located in northwestern Ontario, Canada. The PFS results support a 30,000 tonnes-per-day open pit mining operation over an 11.3 year mine life.

PFS Highlights

- 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: Proven and 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)
- 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$20, and an exchange rate (C$ 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.

This PFS is an important milestone for the Company as we continue to advance and de-risk the Springpole Gold Project, stated Dan Wilton, CEO of First Mining. First Mining is declaring mineral reserves for the first time ever on the Springpole Gold Project, reflecting the culmination of a year of detailed data collection, trade-off studies, and engineering and technical de-risking work done by First Mining and our partners on our project team. The results of the PFS confirm 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 work we have undertaken to date to reduce the potential environmental impact from the project demonstrates the potential for Springpole to be developed in a responsible manner and to mitigate long-term impacts. We look forward to the Projects continual improvement through collaboration with our local and Indigenous communities of interest as we advance Springpole through the federal and provincial Environmental Assessment processes. We are very excited to have added Steve Lines and his team to lead this effort for First Mining. The teams recent and significant experience successfully permitting the Hardrock project in Ontario and other similar open pit mining projects in Canada requiring in-lake cofferdams and associated dewatering will serve us well as we continue to advance Springpole.

This PFS for the Springpole Gold Project was prepared by AGP Mining Consultants Inc. (AGP) of Toronto, Canada, and a technical report summarizing the PFS will be filed by the Company on SEDAR within 45 days of this news release.

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 4.6 million ounces (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.

The PFS evaluates recovery of gold and silver from a 30,000 tonne-per-day (tpd) open pit 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:

Key Assumptions LOM Years 1 to 9
Base Case Commodity US$1,600/oz Au, US$20/oz Ag
Prices

Exchange Rate (C$ to 0.75
US$)

Production Profile LOM Years 1 to 9
Total Tonnes Processed 121.6 97.4
(
Mt)
Total Tonnes Waste (Mt)287.5 259.6
Mill Grade - Gold, 0.97 g/t Au, 5.2 1.12 g/t Au,
Silver g/t 5.7 g/t
Ag Ag

Mine Life 11.3 years 9 years
Throughput (tonnes per 30,000 30,000
day)

Strip Ratio (waste:ore)2.36 : 1 2.66 : 1 (inc.
PP
period)

Overall Recovery - 85.7% Au, 89.5% Ag87.0% Au, 89.8%
Gold, Ag
Silver

LOM Metal Recovered - 3.2 Moz Au, 18.1 3.0 Moz Au,
Gold, Moz 16.1 Moz
Silver Ag Ag

Average Annual 287 koz Au, 1.6 335 koz Au, 1.8
Production - Gold, Moz Ag Moz Ag
Silver


Unit Operating Costs (1LOM Years 1 to 9
)

Total Cash Cost (2) US$618/oz Au (net)US$558/oz Au
US$673/oz AuEq (net)
(co-product)
US$612/oz AuEq
(co-product)

All-In Sustaining Cost US$645/oz Au (net)US$577/oz Au
AISC US$698/oz AuEq (net)
(3) (co-product)
US$631/oz AuEq
(co-product)

Project Economics -US$1
600/oz Gold
Price

NPV5% - Pre-Tax, US$1.5 billion, US$995 million
After-Tax

IRR - Pre-Tax, 36.4%, 29.4%
After-Tax

Payback Period - 2.2 years, 2.4 years
Pre-Tax,
After-Tax

LOM Cash Flow - US$2.3 billion, US$1.6 billion
Pre-Tax,
After-Tax
(1) All unit operating costs are shown on both 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

Economic Sensitivities

The Project economics and cash flows are highly sensitive to changes to the gold price.

Springpole Economic Sensitivity to Gold Price (base case in bold)

Gold Price $1,400 $1,600 $1,800 $2,000
(US$/oz)

Pre-Tax NPVUS$1.04 bUS$1.48 bUS$1.92 bUS$2.36 b
5% illion illion illion illion

Pre-Tax IRR28.9% 36.4% 43.2% 49.5%
After-Tax US$690 miUS$995 mi$1.30 bil$1.60 bil
NPV llion llion lion lion
5%
After-Tax 23.3% 29.4% 35.0% 40.1%
IRR

Springpole Economic Sensitivity to Initial Capital Costs (base case in bold)

Initial Capit+10% US$718 mill-10%
al ion
Costs

Pre-Tax NPV5%US$1.34 bilUS$1.48 bilUS$1.61 bil
lion lion lion

Pre-Tax IRR 30.1% 36.4% 44.1%
After-Tax NPVUS$875 millUS$995 millUS$1,102 mi
5% ion ion llion

After-Tax IRR23.8% 29.4% 36.3%

Springpole Economic Sensitivity to Operating Costs (base case in bold)

Operating +10% US$2.21 bil-10%
Costs lion

Pre-Tax NPV5%US$1.33 bilUS$1.48 bilUS$1.63 bil
lion lion lion

Pre-Tax IRR 34.1% 36.4% 38.6%
After-Tax NPVUS$890 millUS$995 millUS$1,098 mi
5% ion ion llion

After-Tax IRR27.6% 29.4% 31.3%

To view entire news in original language, please follow the link:
https://firstmininggold.com/_resources/news/2021_01_20.pdf

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. A Pre-Feasibility Study was recently completed on the Project and permitting is on-going with submission of the EIS 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 Minings 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 created in 2015 by Mr. Keith Neumeyer, founding President and CEO of First Majestic Silver Corp.

ON BEHALF OF FIRST MINING GOLD CORP.

Daniel W. Wilton
Chief Executive Officer and Director

For further information, please contact:

Spiros Cacos | Vice President, Investor Relations
Direct: +1 604 639 8825 | Toll Free: 1 844 306 8827 | Email: info(at)firstmininggold.com
www.firstmininggold.com

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking information and "forward-looking statements (collectively "forward-looking statements) within the meaning of applicable Canadian and United States securities legislation including the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this news release. Forward-looking statements are frequently, but not always, identified by words such as "expects, "anticipates, "believes, plans, projects, "intends, "estimates, envisages, "potential, "possible, strategy, goals, opportunities, objectives, or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions.

Forward-looking statements in this news release relate to future events or future performance and reflect current estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements with respect to: (i) the estimated amount and grade of Mineral Resources and Mineral Reserves at the Springpole Gold Project; (ii) the results of the PFS and the PFS representing a viable development option for the Project; (iii) construction of a mine at the Project and related actions, including dewatering activities; (iv) the merits of the Project and the potential for the Project to become one of Canadas largest gold mines when in production; (v) estimates of the capital costs of constructing mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback periods; (vi) the estimated amount of future production, both produced and metal recovered; (vii) life of mine estimates and estimates of operating costs and total costs, net cash flow, net present value and economic returns from an operating mine constructed at the Project; (viii) investigation of opportunities to improve the economics of the proposed mine and the success of any such opportunities; (ix) the completion of additional optimization studies on the Project in advance of, or in connection with, a Feasibility Study; (ix) timing for the filing of a technical report for the PFS on SEDAR; and (x) timing for the submission of the EIS. All forward-looking statements are based on First Mining''s or its consultants'' current beliefs as well as various assumptions made by them and information currently available to them. The most significant assumptions are set forth above, but generally these assumptions include: (i) the presence of and continuity of metals at the Project at estimated grades; (ii) the geotechnical, hydrological, hydrogeological, and metallurgical characteristics conforming to sampled results, including the quantities of water and the quality of the water that must be diverted or treated during mining operations; (iii) the capacities and durability of various machinery and equipment; (iv) the availability of personnel, machinery and equipment at estimated prices and within the estimated delivery times; (v) currency exchange rates; (vi) metals sales prices and exchange rate assumed; (vii) appropriate discount rates applied to the cash flows in the economic analysis; (viii) tax rates and royalty rates applicable to the proposed mining operation; (ix) the availability of acceptable financing under assumed structure and costs; (x) metallurgical performance; (xi) reasonable contingency requirements; (xii) success in realizing proposed operations; (xiii) receipt of permits and other regulatory approvals on acceptable terms; and (xiv) the fulfillment of environmental assessment commitments and arrangements with local communities. Although the Companys management considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Many forward-looking statements are made assuming the correctness of other forward-looking statements, such as statements of net present value and internal rates of return, which are based on most of the other forward-looking statements and assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs will be in the future and it is assumed costs will remain stable over the relevant period.

By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that estimates, forecasts, projections and other forward-looking statements will not be achieved or that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-looking statements as a number of important factors could cause the actual outcomes to differ materially from the beliefs, plans, objectives, expectations, anticipations, estimates assumptions and intentions expressed in such forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and estimates expressed above do not occur as forecast, but specifically include, without limitation: (i) risks relating to variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that predicted; (ii) variations in rates of recovery and extraction; (iii) the geotechnical characteristics of the rock mined or through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted or treated during mining operations being different from what is expected to be encountered during mining operations or post closure, or the rate of flow of the water being different; (iv) developments in world metals markets; (v) risks relating to fluctuations in the Canadian dollar relative to the US dollar; (vi) increases in the estimated capital and operating costs or unanticipated costs; (vii) difficulties attracting the necessary work force; (viii) availability of necessary financing and any increases in financing costs or adverse changes to the terms of available financing, if any; (ix) tax rates or royalties being greater than assumed; (x) changes in development or mining plans due to changes in logistical, technical or other factors; (xi) changes in project parameters as plans continue to be refined; (xii) risks relating to receipt of permits and regulatory approvals; (xiii) delays in stakeholder negotiations (including negotiations with affected local and Indigenous communities of interest); (xiv) changes in regulations applying to the development, operation, and closure of mining operations from what currently exists; (xv) the effects of competition in the markets in which First Mining operates; (xvi) operational and infrastructure risks; (xvii) managements discretion to alter the Companys short and long term business plans; and the additional risks described in First Mining''s Annual Information Form for the year ended December 31, 2019 filed with the Canadian securities regulatory authorities under the Companys SEDAR profile at www.sedar.com, and in First Minings Annual Report on Form 40-F filed with the SEC on EDGAR.

First Mining cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying on our forward-looking statements to make decisions with respect to First Mining, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. First Mining does not undertake to update any forward-looking statement, whether written or oral, that may be made from time to time by the Company or on our behalf, except as required by law.

Cautionary Note to United States Investors

This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve estimates included in this news release have been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy, and Petroleum 2014 Definition Standards on Mineral Resources and Mineral Reserves. NI 43-101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including NI 43-101, differ significantly from the requirements of the SEC, and mineral resource and reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the term "resource does not equate to the term "reserves. Under U.S. standards, mineralization may not be classified as a "reserve unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. The SEC''s disclosure standards normally do not permit the inclusion of information concerning "measured mineral resources, "indicated mineral resources or "inferred mineral resources or other descriptions of the amount of mineralization in mineral deposits that do not constitute "reserves by U.S. standards in documents filed with the SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. U.S. investors should also understand that "inferred mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. Under Canadian rules, estimated "inferred mineral resources may not form the basis of feasibility or other economic studies. Investors are cautioned not to assume that all or any part of an "inferred mineral resource exists, is economically or legally mineable, or will ever be upgraded to a higher resource category. Disclosure of "contained ounces in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves by SEC standards as in-place tonnage and grade without reference to unit measures. The requirements of NI 43-101 for identification of "reserves are also not the same as those of the SEC, and reserves reported by the Company in compliance with NI 43-101 may not qualify as "reserves under SEC standards. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards.




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Date: 01/20/2021 - 15:11
Language: English
News-ID 1563959
Character count: 15784
Kontakt-Informationen:
Firma: First Mining Gold Corp.
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Stadt: Wien
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