Springpole Gold ProjectOn November 13, 2015, First Mining Finance Corp. ("First Mining") closed 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 kilometers northeast of the Town of Red Lake and is situated within the Birch-Uchi Greenstone Belt.
- Large open-pittable resources:
- Indicated Resource: 128.2 Mt at 1.07 g/t A, 5.7 g/t Ag, containing 4,410,000 oz. Au and 23,800,000 oz. Ag
- Inferred Resource: 25.7 Mt at 0.83 g/t Au, 3.2 g/t Ag, containing 690,000 oz. Au and 2,700,000 oz. Ag
- Significant infrastructure in-place or proximal to project: 72-man camp onsite, winter road access, logging road within 10km, and power lines nearby
- Project is located within a pro-mining jurisdiction that is covered by Treaty Three First Nations Agreement
- Positive Preliminary Economic Assessment ("PEA") amended in October 2016
2013 PEA Highlights* (Using a 1:1 Canadian $ to US $ Exchange Ratio)(1):
- Post-tax NPV = US$760M(2) (0% discount)
- Post-tax NPV = US$388M(2) (5% discount)
- Pre-tax IRR = 25.4% and Post-tax IRR = 13.8%(2)
- Estimated Cash Cost = US$636/Oz. AuEq. and All-in Cash Cost = US$860 Oz. AuEq.(3)
- 20,000 tpd processing facility
- At full production, Est. Avg. Annual Production = 217Koz. Au & 1.2 Moz. Ag
- Mine Life = 11 years
- Initial capital cost = US$438 M
- Strip ratio of 1.7:1
- Exchange Ratio = US$1 : CDN$1
- Post-tax Payback Period = 35 months (non-discounted)
(1) See technical report entitled “Preliminary Economic Assessment for the Springpole Gold Project, Ontario, Canada” amended October 7, 2016, which is available at www.sedar.com under First Mining’s SEDAR profile. The preliminary economic assessment (or PEA) is preliminary in nature. It includes inferred 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. There is no certainty that the preliminary economic assessment will be realized.
(2) Estimated at $1,300.00/oz. Au and $25.00/oz. Ag.
(3) Estimated with an In-situ cut-off grade of 0.64 g/t AuEq.
Springpole Mineral Resource Estimate for Gold and Silver at cut-off grade of 0.4 g/t Au*
- See technical report entitled “Preliminary Economic Assessment for the Springpole Gold Project, Ontario, Canada” amended October 7, 2016, which is available at www.sedar.com under First Mining’s SEDAR profile.
- 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.
- The gold grades reflect applications of domain-specific raw assay capping factors that range between 55 g/t and 3 g/t.
- The rounding of tonnes may result in apparent differences between tonnes, grade and contained ounces.
- Investors cannot rely on the relevance or reliability of this historic report.
- First Mining has not done the work necessary to validate the resource and additional work would be required to verify this historical resource.
- A Qualified Person of First Mining has not done sufficient work to classify this historical estimate as a current resource.
- 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.