First Mining announces positive updated PEA for Springpole project
First Mining Gold (TSX: FF) announced on Wednesday the positive results of an updated preliminary economic assessment (PEA) for its Springpole gold project. The project is located about 110 km northeast of the town of Red Lake in northwestern Ontario, covering 32,448 hectares.
The updated PEA reinforces the potential for the Springpole gold project to become one of Canada’s largest gold mines when in production, the company says.
The PEA contemplates an open-pit mine and milling operation and reflects updated metallurgical test work that has demonstrated the potential for significantly improved recoveries. The PEA also reflects updated operating and capital cost estimates.
At a 5% discount rate, the after-tax net present value of the Springpole project is pegged at $841 million, with an internal rate of return of 22%. Annual production could reach 410,000 oz gold and 2.4 million oz silver on average in years 2 through 9 over a 12-year mine life. The mine is anticipated to have a 2.5-year pre-production period.
Shares of First Mining were up 2% during Wednesday’s trading session. The Vancouver-based gold miner has a market capitalization of C$134.4 million.