Springpole Project

Springpole Project

Overview:

Location: 110km north east of town of Red Lake, Ontario, Canada
Area: 32,240 hectares
Metals: Gold

On November 13, 2015, First Mining completed the acquisition of Gold Canyon Resources Inc., which wholly owned the Springpole Gold Project. Springpole is one of Canada's largest undeveloped gold projects and the project's land position covers a total of 32,448 hectares (over 80,000 acres). The project is located in northwestern Ontario, approximately 110 kilometres northeast of the Town of Red Lake, and is situated within the Birch-Uchi Greenstone Belt.

Springpole map First Mining Finance Corp

Project Highlights:

  • Large open-pittable resources:
  • Indicated Resource: 139.1 Mt at 1.04 g/t Au, 5.4 g/t Ag, containing 4,670,000 ounces of gold and 24,190,000 ounces of silver
  • Inferred Resource: 11.4 Mt at 0.63 g/t Au, 3.1 g/t Ag, containing 230,000 ounces of gold and 1,120,000 ounces of silver
  • Significant infrastructure in-place or proximal to project: 72-man camp onsite, winter road access, logging road within 10 km, and power lines nearby
  • Project is located in a pro-mining jurisdiction within Treaty Three First Nations Agreement lands
  • Positive Preliminary Economic Assessment ("PEA") see news release dated September 21, 2017

PEA Highlights* (Using a 0.75:1 Canadian $ to US $ Exchange Ratio)(1):

  • Pre-tax NPV = US$1.2B(2) (0% discount)
  • Post-tax NPV = US$792M(2) (5% discount)
  • Pre-tax IRR = 32.3% and Post-tax IRR = 13.8%(2)
  • Estimated Cash Cost = US$619/oz. AuEq. and All-in Cash Cost = US$806/oz. AuEq.(3)
  • 36,000 tpd processing facility
  • At full production, Est. Avg. Annual Production = 296,500 ounces of gold & 1,600,000 ounces of silver
  • Mine Life = 12 years
  • Initial capital cost = US$586 M
  • Strip ratio of 2.1:1
  • Exchange Ratio = CDN$0.75 : US$1
  • Post-tax Payback Period = 3.5 years (non-discounted)

1. Based on the technical report titled "Preliminary Economic Assessment Update for the Springpole Gold Project, Ontario, Canada", dated October 16, 2017, which is available at www.sedar.com under First Mining's SEDAR profile. Readers are cautioned that the PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.  Mineral resources that are not mineral reserves do not have demonstrated economic viability.

2. Estimated at $1,300.00/oz. Au and $20.00/oz. Ag.

3. Estimated with a cut-off grade of 0.4 g/t AuEq. Cut-off grades are based on a gold price of $1,400/oz and a gold processing recovery of 80% and a silver price of $15/oz and a silver processing recovery of 60%.

Springpole Mineral Resource Estimate for Gold and Silver at cut-off grade of 0.4 g/t Au*

Category
Tonnes
Au Grade
(g/t)
Ag Grade
(g/t)
Contained
Au (oz.)
Contained
Ag (oz.)
Indicated
139,100,000
1.04
5.4
4,670,000
24,190,000
Inferred
11,400,000
0.63
3.1
230,000
1,120,000

*Notes:

1. Based on the technical report titled "Preliminary Economic Assessment Update for the Springpole Gold Project, Ontario, Canada", dated October 16, 2017, which is available at www.sedar.com under First Mining's SEDAR profile. Readers are cautioned that the PEA is preliminary in nature, it includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.  Mineral resources that are not mineral reserves do not have demonstrated economic viability.

2. Cut-off grades are based on US$1,400/oz. Au price and Au recoveries of 80%; and a US$15/oz. Ag price and 60% Ag recoveries.

3. The gold grades reflect applications of domain-specific raw assay capping factors that range between 55 g/t and 3 g/t.

4. The rounding of tonnes may result in apparent differences between tonnes, grade and contained ounces.

5. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues.

 

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