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First Mining Announces Updated Pre-Feasibility Study for the Springpole Gold Project, Ontario, Canada
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First Mining Announces Updated Pre-Feasibility Study for the Springpole Gold Project, Ontario, Canada
First Mining Announces Updated Pre-Feasibility Study for the Springpole Gold Project, Ontario, Canada PR Newswire
Pre-Tax NPV5% of US$3.2 billion, Pre-Tax IRR of 54%
After-Tax NPV5% of US$2.1 billion, After-Tax IRR of 41%
Average Annual Gold Production of 330 koz and AISC of US$877/oz in Years 1 through 5
VANCOUVER, BC, Nov. 18, 2025 /PRNewswire/ - First Mining Gold Corp. ("First Mining" or the "Company") (TSX: FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce the positive results of an updated Pre-Feasibility Study ("2025 PFS") completed for its 100%-owned Springpole Gold Project (the "Project" or "Springpole") located in Ontario, Canada. The 2025 PFS results support a 30,000 tonnes-per-day ("tpd") open pit mining operation.
2025 PFS Highlights12
US$3.2 billion pre-tax net present value at a 5% discount rate ("NPV5%") at US$3,100/oz gold ("Au"), increasing to US$5.6 billion at US$4,200/oz Au2
US$2.1 billion after-tax NPV5% at US$3,100/oz Au, increasing to US$3.8 billion at US$4,200/oz Au
54% pre-tax internal rate of return ("IRR") at US$3,100/oz increasing to 82% at $4,200/oz Au
41% after-tax IRR at US$3,100/oz Au increasing to 63% at US$4,200/oz Au
Life of mine ("LOM") of 9.4 years
After-tax payback of 1.8 years and reducing to 1.2 years at US$4,200/oz Au
Initial capital costs estimated at US$1,104 million, sustaining capital costs estimated at US$323 million, plus US$40 million in closure costs (excluding plant closure)
Average annual payable gold production of 330 koz per year (Years 1 to 5); 281 koz per year LOM
Total net cash costs3 of US$742/oz (Years 1 to 5); and US$802/oz LOM
Net All-In Sustaining Costs ("AISC")3 of US$877/oz (Years 1 to 5), and AISC US$938/oz (LOM)
"We are pleased to announce a very positive updated PFS at our Springpole Gold Project that reinforces its position as one of the largest and most robust undeveloped gold and silver projects in Canada", stated Dan Wilton, CEO of First Mining. "Since our original PFS was published in 2021, we have completed significant engineering work, the results of which have been reflected in the updated infrastructure and design plans that First Mining has carried through the Environmental Assessment process. At the same time, this study demonstrates the strong leverage to gold price the Project possesses, and clearly demonstrates the potential for Springpole to be one of the largest economic drivers in northwestern Ontario for a generation to come, delivering hundreds of jobs and careers in the region, significant contracting opportunities for regional and Indigenous businesses and more than $7 billion in gross domestic product, as well as generational opportunities and potential infrastructure improvements for the Indigenous communities in the area. First Mining continues to make progress on the Federal and Provincial Environmental Assessment processes, important consultation processes with Indigenous communities, and expects to provide updates in the coming months."
______________________________________
1 Base case parameters assume a gold price of US$3,100/oz, silver price of US$35.50/oz, and an exchange rate (C$ to US$) of 0.74. 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.
2 US$4,200/oz Au spot case also based on US$51/oz Ag and 0.71 (C$ to US$).
3 Initial capital costs, total cash costs and all-in sustaining costs are non-IFRS measures widely used in the mining industry as a benchmark for performance, but do not have standardized meanings under the Company's financial reporting framework. The methods used by the Company to calculate such measures may differ from methods used by other companies with similar descriptions. See "Non-IFRS Financial Measures" at the end of this news release for further details of these measures.
This 2025 PFS for the Springpole Gold Project was prepared by Ausenco Engineering Canada ULC ("Ausenco") of Vancouver, Canada, and a technical report summarizing the 2025 PFS will be filed by the Company on SEDAR+ within 45 days of this news release.
2025 PFS Overview
The Springpole Gold Project, located in Ontario, Canada, is one of the largest undeveloped gold resources in North America. The Project is located approximately 110 kilometres northeast of Red Lake and within 18 km of road access. The 2025 PFS provides for an updated resource model for Springpole including an Indicated Mineral Resource of 191Mt at 0.78 g/t Au for 4.8 million ounces ("Moz") of gold and 4.6 g/t Ag for 28 Moz of silver. The Inferred Mineral Resource category hosts 64 Mt at 0.38 g/t Au for 0.8 Moz of gold and 3.1 g/t Ag for 6.5 Moz of silver.
The 2025 PFS evaluates recovery of gold and silver from a 30,000 tpd open pit operation, with a process plant planned to include crushing, grinding, and flotation, with fine grinding of the flotation concentrate and separate agitated leaching circuits for both the reground flotation concentrate and the flotation tailings, followed by a carbon-in-pulp recovery process and a Merrill-Crowe circuit to produce doré bars. Tailings and mine rock are proposed to be securely stored at the Project's Co-Disposal Facility ("CDF") designed by WSP Canada, Inc. and reviewed by the Independent Tailings and Geotechnical Review Board established for the Project in 2023. The leached sulphur containing ("PAG") flotation tailings are stored in a downstream constructed and raised CDF south cell which is lined. The desulphurized flotation ("NAG") tailings are thickened and co-disposed with mine rock in the CDF north cell.
Certain important parameters of the 2025 PFS are presented in the following table:
Table 1: Key Parameters
Key Assumptions
LOM
Years 1 to 5
Base Case Commodity Prices
US$3,100/oz Au, US$35.50/oz Ag
Exchange Rate (C$ to US$)
0.74
Production Profile
LOM
Years 1 to 5
Total Tonnes Processed (Mt)
102.0
53.6
Total Tonnes Waste (Mt)
309.5
217.0
Mill Grade - Gold, Silver
0.94 g/t Au, 4.9 g/t Ag
1.09 g/t Au, 5.7 g/t Ag
Mine Life
9.4 years
5.0 years
Throughput (tpd)
30,000
30,000
Strip Ratio (waste:ore)
3.0 : 1
3.2 : 1
Overall Recovery - Gold, Silver
86.0% Au, 86.2% Ag
86.7% Au, 87.1% Ag
LOM Metal Recovered - Gold, Silver
2.6 Moz Au, 13.8 Moz Ag
1.6 Moz Au, 8.5 Moz Ag
Average Annual Recovered - Gold, Silver
281 koz Au, 1,468 koz Ag
330 koz Au, 1,704 koz Ag
Unit Operating Costs
LOM
Years 1 to 5
Total Cash Cost1
US$802/oz Au
(net of by-products)
US$742/oz Au
(net of by-products)
AISC1
US$938/oz Au
(net of by-products)
US$877/oz Au
(net of by-products)
Project Economics - US$3,100/oz Au Price
Pre-Tax
Post-Tax
NPV5%
US$3.2 billion
US$2.1 billion
IRR
53.8 %
40.8 %
Payback Period
1.4 Years
1.8 Years
LOM Cash Flow
US$4.6 billion
US$3.1 billion
Economic Sensitivities
The Project economics and cash flows are highly sensitive to changes to the gold price as presented in the following tables.
Table 2: Springpole Economic Sensitivity to Gold Price
Gold Price
(US$/oz)
$2,450
$2,800
$3,100
$3,500
Spot2
($4,200)
Pre-Tax NPV5%
US$2.0 billion
US$2.6 billion
US$3.2 billion
US$4.0 billion
US$5.6 billion
Pre-Tax IRR
37.8 %
46.7 %
53.8 %
62.7 %
82.1 %
After-Tax NPV5%
US$1.3 billion
US$1.7 billion
US$2.1 billion
US$2.7 billion
US$3.8 billion
After-Tax IRR
28.6 %
35.4 %
40.8 %
47.7 %
62.6 %
Table 3: Springpole Economic Sensitivity to Initial Capital Costs
Initial Capital
+20 %
+10 %
-
-10 %
-20 %
Pre-Tax NPV5%
US$3.0 billion
US$3.1 billion
US$3.2 billion
US$3.3 billion
US$3.4 billion
Pre-Tax IRR
44.9 %
49.0 %
53.8 %
59.4 %
66.1 %
After-Tax NPV5%
US$2.0 billion
US$2.1 billion
US$2.1 billion
US$2.2 billion
US$2.3 billion
After-Tax IRR
34.0 %
37.2 %
40.8 %
45.2 %
50.4 %
____________________________________
1 Cash costs and AISC are non-IFRS measures widely used in the mining industry as a benchmark for performance, but do not have standardized meanings under the Company's financial reporting framework. See "Non-IFRS Financial Measures" at the end of this news release for further details of these measures.
2 Spot price of US$4,200/oz Au, US$51/oz Ag and 0.71 (C$ to US$).
Table 4: Springpole Economic Sensitivity to Operating Costs
Operating Costs
+20 %
+10 %
-
-10 %
-20 %
Pre-Tax NPV5%
US$2.9 billion
US$3.0 billion
US$3.2 billion
US$3.4 billion
US$3.6 billion
Pre-Tax IRR
49.9 %
51.8 %
53.8 %
55.7 %
57.5 %
After-Tax NPV5%
US$1.9 billion
US$2.0 billion
US$2.1 billion
US$2.2 billion
US$2.4 billion
After-Tax IRR
37.8 %
39.3 %
40.8 %
42.3 %
43.8 %
Key Changes from 2021 Pre-Feasibility Study
Since the release of the 2021 PFS, First Mining has continued to advance Project engineering in support of addressing the Provincial and Federal Environmental Assessment processes, and the consultation processes with local and Indigenous communities. This work, which remains on-going has resulted in several updates to the Project design since 2021. The following areas reflect the key design optimizations from the 2021 PFS to date that have been brought forward in the 2025 PFS:
The filter plant for NAG tailings was removed from the flowsheet given the optimization to a thickened tailings product instead of dry filtered tailings.
The tailings and mine rock management strategy has been advanced since the 2021 PFS. A separate flotation and leach circuit will sequester the sulphur concentrate PAG tailings. This allows the PAG tailings to be isolated and placed saturated during operations in the CDF south cell to mitigate the potential onset of acid generation.
PAG mine rock will be placed in the centre of the north cell. Thickened NAG tailings, hydraulically transported via a pipeline, will encapsulate the PAG mine rock significantly reducing oxygen ingress to prevent oxidation of PAG mine rock improving environmental performance.
A Merrill-Crowe circuit was added to the gold recovery circuits in order to manage ore variability and high silver grades.
An airstrip was added to the site layout to be co-located adjacent to the mine access road that will facilitate up to Dash-8 size aircraft.
A contact water management system will collect and treat site runoff and intercept potential seepage from the CDF.
The closure design has been advanced to include a new enhanced fish habitat development area of 46 hectares which results in a net gain in Springpole Lake surface area at closure with corresponding benefits for fish and fish habitat.
Two construction phase quarry sources within the Project footprint have been identified to source clean construction material early on with one adjacent to the two dikes and the second within the CDF footprint. This results in readily available material to initiate the construction of key Project infrastructure early on at low cost while maintaining a small overall Project footprint.
The tonnes processed has been reduced from the 2021 PFS as a result of an updated pit design requiring reduced pit slope angles in the southwest portion of the open pit. Opportunities exist to optimize the pit design as the Project advances with additional drilling programs planned in support of a feasibility study. The reduction in the tonnes is partially offset by the 154% increase in contained gold ounces in the Inferred Resource category which will continue to be defined with further drilling and opportunities at Springpole Southwest and East targets. See Project Enhancement Opportunities section.
Process and equipment changes are as follows:Flotation Tails Thickener diameter reduced to 40 m (previously 41 m)
Flotation Concentrate Thickener diameter reduced to 23 m (previously 30 m)
CCD Thickeners diameter reduced to 23 m (previously 30 m)
Clarifier diameter reduced to 29 m (previously 33 m)
Flotation Tailings Leach Tanks diameter decreased to 17.0 m (previously 19.3 m)
Concentrate Pre-Oxidation Tank diameter decreased to 14.7 m (previously 15.2 m)
Tails Cyanide Detox Tanks diameter increased to 11.9 m (previously 6.4 m)
Concentrate Cyanide Detox Tanks diameter increased to 7.1 m (previously 6.4 m)
Tailings Surge Tanks diameter decreased to 15.9 m (previously 19.6 m)
Regrind Mills quantity reduced to two (2) (previously three (3))
Concentrate Leach Tanks quantity reduced to four (4) and the diameter reduced to 10.5 m (previously six (6) with a diameter of 12.3 m)
Flotation Cells quantity reduced to five (5) and capacity increased to 300 m³ (previously six (6) with a capacity of 200 m³)
Mineral Processing and Metallurgical Testing
The 2025 PFS reflects updated recoveries for both gold and silver that resulted from updated metallurgical test work completed since the 2021 PFS. The test work focused on understanding the variability in gold and silver recoveries as well as optimizing the process flowsheet.
Based on the test work carried out, a flowsheet that includes flotation followed by leaching of reground concentrate and flotation tails presents as the most beneficial processing route for the Project. This flowsheet is based on a primary grind size of 80% passing or P80 150 micrometres ("µm") ahead of flotation, with flotation concentrate being reground to approximately 17 µm ahead of agitated leaching. The overall recoveries expected and used for the economics presented in the 2025 PFS are 86.0% for gold and 86.2% for silver. The increase in gold / decrease in silver recoveries in the 2025 PFS stems primarily from a better understanding of the ore variability. First Mining plans to undertake follow-up metallurgical test work to investigate additional opportunities to further increase recoveries and believes that this remains an important focus area for further improving the economics of the Project.
Mineral Resource and Mineral Reserve Estimates
The updated 2025 mineral resource model prepared by SRK Consulting (Canada) Inc. ("SRK") utilizes results from 499 core boreholes drilled by First Mining and previous property owners. The Mineral Resource Estimate ("MRE") at the Springpole Gold Project is shown below.
Table 5: Mineral Resource Statement Inclusive of Mineral Reserves (effective September 30, 2025)
Category
Quantity
Grade
Metal
Au
Ag
Au
Ag
(Mt)
(g/t)
(g/t)
(Moz)
(Moz)
Open Pit
Indicated
191
0.78
4.6
4.8
28.0
Inferred
64
0.38
3.1
0.8
6.5
Notes:
1.
Mineral resources are reported in relation to a conceptual pit shell. Mineral resources are not mineral reserves and 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.
2.
The MRE was completed under the supervision of Gilles Arseneau, P.Geo., from SRK who is a Qualified Person as defined under NI 43-101.
3.
Open pit mineral resources are reported at a cut-off grade ("COG") of 0.20 g/t Au. COGs are based on a gold price of US$2,450/oz and a gold processing recovery of 87.2% and a silver price of US$27.50/oz and a silver processing recovery of 85.5%.
4.
Preliminary mining cost assumptions of C$2.60/tonne mined of waste, C$2.30/tonne mined of ore, and C$2.00/tonne mined of overburden, with an incremental mining cost of C$0.02/tonne/6m mined.
5.
Preliminary processing cost assumptions of C$14.50/tonne processed, general & administration assumption of C$0.90/tonne processed, stockpile cost assumption of C$0.75/tonne processed, and incremental ore mining cost of C$0.56/tonne processed. Overall pit shell slope angles ranged from 20 - 45°.
The resource model includes mineralized material in the Camp, East Extension and Portage zones spanning 1,860 m in the southeast direction along the axis of the Portage zone and 900 m in the northeast direction perpendicular to the long axis of the Portage zone. Resource modelling includes mineralized material generally ranging from 340 m to 440 m below surface.
At the reported 0.20 g/t cut-off grade, while the Indicated mineral resource in the new MRE is comparable to the previous 2021 PFS, the new estimate reflects a 154% increase in contained gold ounces in the Inferred Resource category. The increase in Inferred ounces is largely a result of the expansion of the Portage Zone from additional drilling completed since 2022, including the discovery of additional gold mineralization in the southwest pit area.
Grade Sensitivity Analysis
The Mineral Resources of the Springpole Gold Project are variable depending upon the selected COG. To illustrate this sensitivity, the global block model quantities and grade estimates within the conceptual pit used to constrain the Mineral Resources are presented below at different cut-off grades for the Indicated Mineral Resource and for the Inferred Mineral Resource.
Indicated Block Model Quantities and Grade Estimates at Cut-off Grades
Table 6: Indicated Block Model Quantities and Grade Estimates at Cut-off Grades
COG
Quantity
Grade
Grade
Au (g/t)
(Mt)
Au (g/t)
Ag (g/t)
0.10
218
0.70
4.2
0.20
191
0.78
4.6
0.25
176
0.83
4.8
0.30
160
0.88
5.0
0.35
145
0.94
5.2
0.40
131
1.00
5.4
0.50
107
1.12
5.9
0.60
87
1.25
6.2
0.70
70
1.39
6.6
0.80
58
1.54
6.9
Table 7: Inferred Block Model Quantities and Grade Estimates at Cut-off Grades
COG
Quantity
Grade
Grade
Au (g/t)
(Mt)
Au (g/t)
Ag (g/t)
0.10
80
0.34
2.9
0.20
64
0.38
3.1
0.25
53
0.42
3.3
0.30
41
0.46
3.6
0.35
31
0.51
3.9
0.40
22
0.56
4.1
0.50
11
0.66
4.1
0.60
6
0.78
4.3
0.70
3
0.90
4.6
0.80
2
1.03
5.2
Notes:
1.
The reader is cautioned that the figures in the above tables should not be misconstrued with a mineral resource statement. The figures are only presented to show the sensitivity of the block model estimates to the selection of COG. Mineral Resource base case is highlighted in grey.
Note on Inferred Resources
An Inferred Mineral Resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
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. The quantity and grade of reported Inferred Mineral Resources in this estimation are uncertain in nature and there has been insufficient exploration to potentially convert some or all of these Inferred Mineral Resources as an Indicated or Measured Mineral Resources and it is uncertain if further exploration will result in upgrading them to the Indicated or Measured Mineral Resource category. The current proportion of the resource classified as Inferred is about 25% of total tonnes, and 14% of contained gold. The Mineral Resources in this statement were estimated using the current CIM Definition Standards for Mineral Resources and Mineral Reserves (CIM May 2014).
The Mineral Reserves for the Springpole Gold Project are based on the conversion of Indicated Mineral Resources within the current pit design. The Springpole Gold Project Mineral Reserves are shown below:
Table 8: Springpole Proven and Probable Reserves
Category
COG
(g/t Au)
Tonnes
(Mt)
Grade
Au (g/t)
Grade
Ag (g/t)
Contained
Metal
Au (Moz)
Contained
Metal
Ag (Moz)
Proven
0.27
-
-
-
-
-
Probable
0.27
102.0
0.94
4.9
3.1
16.1
Total
0.27
102.0
0.94
4.9
3.1
16.1
Notes:
1.
This Mineral Reserve estimate is as of November 13, 2025 and is based on the new mineral resource estimate dated September 30, 2025.
2.
The Mineral Reserve estimation was completed under the supervision of Gordon Zurowski, P.Eng of AGP Mining Consultants Inc., who is a Qualified Person as defined under NI 43-101.
3.
Mineral Reserves are stated within the ultimate design pit based on:
a.
US$2,100/oz gold price and US$24/oz silver price.
b.
Pit Limit corresponds to a pit shell with a revenue factor of 0.60, corresponding to a US$1,260 /oz gold price and US$14.40/oz silver.
c.
A cut-off grade of 0.27 g/t Au for all pit phases.
d.
Preliminary mining cost assumptions of C$2.60/tonne mined of waste, C$2.30/tonne mined of ore, and C$2.00/tonne mined of overburden, with an incremental mining cost of C$0.02/tonne/6m mined.
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