First Mining Files Technical Report for the Positive Pre-Feasibility Study on the Springpole Gold Project, Ontario, Canada Pre-Tax NPV5% of US$1.5 billion, Pre-Tax IRR of 36% After-Tax NPV5% of US$995 million, After-Tax IRR of 29%
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NEWS RELEASE
First Mining Files Technical Report for the Positive Pre-Feasibility Study
on the Springpole Gold Project, Ontario, Canada
Pre-Tax NPV5% of US$1.5 billion, Pre-Tax IRR of 36%
After-Tax NPV5% 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
March 4, 2021 – Vancouver, Canada – 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 (“NPV5%”) at US$1,600/oz gold (“Au”),
increasing to US$1.9 billion at US$1,800/oz Au
• US$995 million after-tax NPV5% 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.
(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.
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“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
Category Tonnes
(Mt)
Grade
Au (g/t)
Grade
Ag (g/t)
Contained Metal
Au (Moz)
Contained Metal
Ag (Moz)
Proven 0.0 0.0 0.0 0.0 0.0
Probable 121.6 0.97 5.23 3.8 20.5
Total 121.6 0.97 5.23 3.8 20.5
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 effe ctive 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)
Category Tonnes
(Mt)
Grade
Au (g/t)
Grade
Ag (g/t)
Contained Metal
Au (Moz)
Contained Metal
Ag (Moz)
Indicated 151 0.94 5.0 4.6 24.3
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Category Tonnes
(Mt)
Grade
Au (g/t)
Grade
Ag (g/t)
Contained Metal
Au (Moz)
Contained Metal
Ag (Moz)
Inferred 16 0.54 2.8 0.3 1.4
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 constraini ng
shell using the following parameters:
o Metal prices of US$1,550/oz gold, US$20/oz silver, exchange rate of US$0.77:C$1
o Mining cost of C$1.62/t, processing cost of C$15.38/t milled, G&A cost of C$1.00/t milled
o Pit slopes varying between 35–50º depending on domain
o 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
Average Annual Production - Gold, Silver 287 koz Au, 1.6 Moz Ag 335 koz Au, 1.8 Moz Ag
Unit Operating Costs (1) LOM Years 1 to 9
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Total Cash Cost (2) US$618/oz Au (net)
US$673/oz AuEq (co-product)
US$558/oz Au (net)
US$612/oz AuEq (co-product)
All-In Sustaining Cost AISC (3) US$645/oz Au (net)
US$698/oz AuEq (co-product)
US$577/oz Au (net)
US$631/oz AuEq (co-product)
Project Economics -US$1600/oz Gold Price
NPV5% - Pre-Tax, After-Tax US$1.5 billion, US$995 million
IRR - Pre-Tax, After-Tax 36.4%, 29.4%
Payback Period - Pre-Tax, After-Tax 2.2 years, 2.4 years
LOM Cash Flow - Pre-Tax, After-Tax US$2.3 billion, US$1.6 billion
(1) All unit operating costs are shown on both gold equivalent as well as net of silver by-product credits
(2) Cash costs consist of mining costs, processing costs, mine-level G&A, treatment and refining charges and royalties
(3) AISC includes cash costs plus sustaining capital and closure costs
The affiliation and areas of responsibility for each of the independent Qualified Persons (as defined under
NI 43-101) involved in preparing the PFS, upon which the technical report is based, are as follows: Dr.
Gilles Arseneau, Ph.D., P.Geo. - Qualified Person for Mineral Resource Evaluation (SRK Consulting (Canada)
Inc.); Mr. Gordon Zurowski, P.Eng. - Qualified Person for Open Pit Mine Engineering and Costing,
Infrastructure and Financial Modelling (AGP); Mr. Roland Tosney, P.Eng. - Qualified Person for O pen Pit
Geotechnical Aspects (AGP); Mr. Cameron McCarthy, P.Eng., P.Geo. , P.Tech. - Qualified Person for
Environmental and Social Aspects (Swiftwater Consulting Ltd.); Mr. Duke Reimer, P.Eng. - Qualified Person
for Tailings and Coffer Dams (Knight Piésold Ltd.); and Dr. Adrian Dance, Ph.D., P.Eng. - Qualified Person
for Mineral Processing and Recovery Methods (SRK Consulting (Canada) Inc).
Identifying potential additional resource upside at Springpole is also a focus of the Company’s 2021 work
programs, with new regional exploration targets being identified and tested within the property beyond
the current open pit area.
Qualified Person
Hazel Mullin, P.Geo., Director, Data Management and Technical Services of First Mining, is a “Qualified
Person” for the purposes of NI 43 -101, and she has reviewed and approved the scientific and technical
disclosure contained in this news release.
About First Mining Gold Corp.
First Mining is a Canadian gold developer focused on the development and permitting of the Springpole
Gold Project in northwestern Ontario. Springpole is one of the largest undeveloped gold projects in
Canada. The results of a positive Pre-Feasibility Study for the Springpole Gold Project were announced by
First Mining in January 2021, and permitting activities are on-going with submission of an Environmental
Impact Statement for the project targeted for 2021. The Company also holds a large equity pos ition in
Treasury Metals Inc. who are advancing the Goliath -Goldlund gold projects towards construction. First
Mining’s portfolio of gold projects in eastern Canada also includes the Pickle Crow (being advanced in
partnership with Auteco Minerals Ltd.), Cameron, Hope Brook, Duparquet, Duquesne, and Pitt gold
projects.
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First Mining was established in 2015 by Mr. Keith Neumeyer, founding President and CEO of First Majestic
Silver Corp.
ON BEHALF OF FIRST MINING GOLD CORP.
Daniel W. Wilton
Chief Executive Officer and Director
For further information, please contact:
Spiros Cacos | Vice President, Investor Relations
Direct: +1 604 639 8825 | Toll Free: 1 844 306 8827 | Email: [email protected]
www.firstmininggold.com
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward -looking infor mation” and "forward -looking statements” (collectively
"forward-looking statements”) within the meaning of applicable Canadian and United States securities legislation
including the United States Private Securities Litigation Reform Act of 1995. These forw ard-looking statements are
made as of the date of this news release. Forward -looking statements are frequently, but not always, identified by
words such as "expects”, "anticipates”, "believes”, “plans”, “projects”, "intends”, "estimates”, “envisages”,
"potential”, "possible”, “strategy”, “goals”, “opportunities”, “objectives”, or variations thereof or stating that certain
actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative
of any of these terms and similar expressions.
Forward-looking statements in this news release relate to future events or future performance and reflect current
estimates, predictions, expectations or beliefs regarding future events and include, but are not limited to, statements
with respect to: (i) the estimated amount and grade of Mineral Resources and Mineral Reserves at the Springpole
Gold Project; (ii) the results of the PFS and the PFS representing a viable development option for the Project; (iii)
construction of a mine at the Project and related actions, including dewatering activities; (iv) the merits of the Project
and the potential for the Project to become a strategically significant, highly profitable gold mine in one of the most
attractive mining jurisdictions in North America when in production; (v) estimates of the capital costs of constructing
mine facilities and bringing a mine into production, of sustaining capital and the duration of financing payback
periods; (v i) the estimated amount of future production, both produced and metal recovered; (vii) life of mine
estimates and estimates of operating costs and total costs, net cash flow, net present value and economic returns
from an operating mine constructed at the Project; and (viii) and timing for the submission of the EIS . All forward-
looking statements are based on First Mining's or its consultants' current beliefs as well as various assumptions made
by them and information currently available to them. The most significant assumptions are set forth above, but
generally these assumptions include: (i) the presence of and continuity of metals at the Project at estimated grades;
(ii) the geotechnical, hydrological, hydrogeological, and metallurgical characteristics conforming to sampled results,
including the quantities of water and the quality o f the water that must be diverted or treated during mining
operations; (iii) the capacities and durability of various machinery and equipment; (iv) the availability of personnel,
machinery and equipment at estimated prices and within the estimated delivery times; (v) currency exchange rates;
(vi) metals sales prices and exchange rate assumed; (vii) appropriate discount rates applied to the cash flows in the
economic analysis; (viii) tax rates and royalty rates applicable to the proposed mining operation; (i x) the availability
of acceptable financing under assumed structure and costs; (x) metallurgical performance; (xi) reasonable
contingency requirements; (xii) success in realizing proposed operations; (xiii) receipt of permits and other regulatory
approvals on acceptable terms; and (xiv) the fulfillment of environmental assessment commitments and
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arrangements with local communities. Although the Company’s management considers these assumptions to be
reasonable based on information currently available to it, they may prove to be incorrect. Many forward -looking
statements are made assuming the correctness of other forward -looking statements, such as statements of net
present value and internal rates of return, which are based on most of the other forward -looking statements and
assumptions herein. The cost information is also prepared using current values, but the time for incurring the costs
will be in the future and it is assumed costs will remain stable over the relevant period.
By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific,
and risks exist that estimates, forecasts, projections and other forward -looking statements will not be achieved or
that assumptions do not reflect future experience. We caution readers not to place undue reliance on these forward-
looking statements as a number of important factors could cause the actual outcomes to differ materially from the
beliefs, plans, objectives, expectations, anticipations, estimates assumptions a nd intentions expressed in such
forward-looking statements. These risk factors may be generally stated as the risk that the assumptions and
estimates expressed above do not occur as forecast, but specifically include, without limitation: (i) risks relating to
variations in the mineral content within the material identified as Mineral Resources and Mineral Reserves from that
predicted; (ii) variations in rates of recovery and extraction; (iii) the geotechnical characteristics of the rock mined or
through which infrastructure is built differing from that predicted, the quantity of water that will need to be diverted
or treated during mining operations being different from what is expected to be encountered during mining
operations or post closure, or the rate of flow of the water being different; (iv) developments in world metals markets;
(v) risks relating to fluctuations in the Canadian dollar relative to the US dollar; (vi) increases in the estimated capital
and operating costs or unanticipated costs; (vii) difficulties attracting the necessary work force; (viii) availability of
necessary financing and any increases in financing costs or adverse changes to the terms of available financing, if
any; (ix) tax rates or royalties being greater than assumed; (x) ch anges in development or mining plans due to
changes in logistical, technical or other factors; (xi) changes in project parameters as plans continue to be refined;
(xii) risks relating to receipt of permits and regulatory approvals; (xiii) delays in stakeho lder negotiations (including
negotiations with affected local and Indigenous communities of interest); (xiv) changes in regulations applying to the
development, operation, and closure of mining operations from what currently exists; (xv) the effects of competition
in the markets in which First Mining operates; (xvi) operational and infrastructure risks; (xvii) management’s
discretion to alter the Company’s short and long term business plans; and the additional risks described in First
Mining's Annual Inform ation Form for the year ended December 31, 201 9 filed with the Canadian securities
regulatory authorities under the Company’s SEDAR profile at www.sedar.com, and in First Mining’s Annual Report
on Form 40-F filed with the SEC on EDGAR.
First Mining cautions that the foregoing list of factors that may affect future results is not exhaustive. When relying
on our forward -looking statements to make decisions with respect to First Mining, investors and others should
carefully consider the foregoing factors and other uncertainties and potential events. First Mining does not undertake
to update any forward -looking statement, whether written or oral, that may be made from time to time by the
Company or on our behalf, except as required by law.
Cautionary Note to United States Investors
This news release has been prepared in accordance with the requirements of the securities laws in effect in Canada,
which differ from the requirements of U.S. securities laws. Unless otherwise indicated, all resource and reserve
estimates included in this news release have been prepared in accordance with NI 43-101 and the Canadian Institute
of Mining, Metallurgy, and Petroleum 2014 Definition Standards on Mineral Resources and Mineral Reserves. NI 43 -
101 is a rule developed by the Canadian Securities Administrators which establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning mineral projects. Canadian standards, including
NI 43 -101, differ significantly from the requirements o f the SEC, and mineral resource and reserve information
contained herein may not be comparable to similar information disclosed by U.S. companies. In particular, and
without limiting the generality of the foregoing, the term "resource” does not equate to t he term "reserves”. Under
U.S. standards, mineralization may not be classified as a "reserve” unless the determination has been made that the
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mineralization could be economically and legally produced or extracted at the time the reserve determination is
made. The SEC's disclosure standards normally do not permit the inclusion of information concerning "measured
mineral resources”, "indicated mineral resources” or "inferred mineral resources” or other descriptions of the amount
of mineralization in mineral deposits that do not constitute "reserves” by U.S. standards in documents filed with the
SEC. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be
converted into reserves. U.S. investors should also understand that "inferred mineral resources” have a great amount
of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. Under Canadian
rules, estimated "inferred mineral resources” may not form the basis of feasibility or other economic studies. Investors
are cautioned not to assume that all or any part of an "inferred mineral resource” exists , is economically or legally
mineable, or will ever be upgraded to a higher resource category . Disclosure of "containe d ounces” in a resource is
permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report
mineralization that does not constitute "reserves” by SEC standards as in-place tonnage and grade without reference
to unit measures. The requirements of NI 43-101 for identification of "reserves” are also not the same as those of the
SEC, and reserves reported by the Company in compliance with NI 43 -101 may not qualify as "reserves” under SEC
standards. Accordingly, informati on concerning mineral deposits set forth herein may not be comparable with
information made public by companies that report in accordance with U.S. standards.