First Mining Files Technical Report for the Positive Pre-Feasibility Study on the Springpole Gold Project, Ontario, Canada

VANCOUVER, BC, March 4, 2021

After-Tax NPV_5% 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

VANCOUVER, BC, March 4, 2021 /PRNewswire/ - 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 ("NPV_5%") at US$1,600/oz gold ("Au"), increasing to US$1.9 billion at US$1,800/oz Au
• US$995 million after-tax NPV_5% 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. ARIVA.DE Börsen-Geflüster Kurse First Mining Finance -   0,00%

(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:

Key Assumptions	LOM	Years 1 to 9
Base Case Commodity Prices	US$1,600/oz Au, US$20/oz Ag
Exchange Rate (C$ to US$)	0.75
Production Profile	LOM	Years 1 to 9
Total Tonnes Processed (Mt)	121.6	97.4
Total Tonnes Waste (Mt)	287.5	259.6
Mill Grade - Gold, Silver	0.97 g/t Au, 5.2 g/t Ag	1.12 g/t Au, 5.7 g/t Ag
Mine Life	11.3 years	9 years
Throughput (tonnes per day)	30,000	30,000
Strip Ratio (waste:ore)	2.36 : 1	2.66 : 1 (inc. PP period)
Overall Recovery - Gold, Silver	85.7% Au, 89.5% Ag	87.0% Au, 89.8% Ag
LOM Metal Recovered - Gold, Silver	3.2 Moz Au, 18.1 Moz Ag	3.0 Moz Au, 16.1 Moz Ag Werbung Mehr Nachrichten zur First Mining Finance Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 15.06.24 - wallstreet:online ... Warren Buffett: Der alte Mann und das "Mehr" 15.06.24 - Wirtschaft-TV Patent News    Wird dieses Unternehmen das nächste BioNTech sein? weiterlesen» Anzeige wo-site-teaser-box-17277_site-teaser-box_2024-06-16_09%253A00%253A00_2024-06-17_09%253A00%253A59