First Mining Files Technical Report for the Positive Updated Preliminary Economic Assessment for the Springpole Gold Project Pre-Tax NPV5% of US$1.23 billion, Pre-Tax IRR of 26% and AISC of US$552/oz Average Annual Gold Production of 410,000 ounces in Years 2 through 9
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NEWS RELEASE
First Mining Files Technical Report for the Positive Updated Preliminary
Economic Assessment for the Springpole Gold Project
Pre-Tax NPV5% of US$1.23 billion, Pre-Tax IRR of 26% and AISC of US$552/oz
Average Annual Gold Production of 410,000 ounces in Years 2 through 9
November 7, 2019 – Vancouver, BC – First Mining Gold Corp. (“First Mining” or the “Company”) (TSX:
FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce it has filed on SEDAR an independent
Preliminary Economic Assessment (“PEA”) technical report (the “Report”) for its Springpole Gold Project
(“Springpole” or the “Project”) located in northwestern Ontario, Canada. The Report, which is entitled
“Preliminary Economic Assessment Update for the Springpole Gold Project, Ontario, Canada” and has an
effective date of September 1, 2019, was prepared by SRK Consulting (Canada) Inc. in accordance with
National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).
Springpole is one of the largest undeveloped open pit gold projects in North America. The updated PEA
contemplates an open pit mine and milling operation and reflects updated metallurgical testwork that has
demonstrated the potential for significantly improved recoveries. The PEA also reflects updated operating
and capital cost estimates.
PEA Highlights
• $1.23 billion pre-tax net present value discounted at 5% (“NPV5%”) ($1.75 billion at $1,500/oz gold)
• $841 million after-tax NPV5% ($1.22 billion at $1,500/oz gold)
• 26% pre -tax internal rate of return (“IRR”) (33% at $1,500/oz gold), 22% after- tax IRR (28% at
$1,500/oz gold)
• Mine life of 12 years with a 2.5-year pre-production period
• Average annual gold production in years 2 through 9 of 410,000 ounces gold and 2.4 million ounces
silver; 3.9 million ounces gold and 22 million ounces silver recovered over the Life of Mine (“LOM”)
• Low LOM strip ratio of 2.1 to 1 with a LOM mill grade of 1.0 g/t gold and 5.3 g/t silver
• LOM overall metal recoveries of 88% for gold and 93% for silver
• LOM direct operating cash costs (1) estimated at $575/oz of gold equivalent ($514/oz of gold on a by-
product basis)
• LOM all-in sustaining costs (AISC) (2) estimated at $611/oz of gold equivalent ($552/oz of gold on a by-
product basis)
• Initial capital costs estimated at $809 million, using an owner-operated mining scenario
• LOM sustaining capital costs estimated at $124 million, plus $26 million for closure costs
Note: Base case parameters assume a gold price of $1,300/oz and a silver price of $20/oz (the same prices used in the 2017 PEA),
and an exchange rate (C$ to US$) of 0.75. All currencies are reported in U.S. dollars unless otherwise specified. NPV is calculated
as of the commencement of construction and excludes all pre-construction costs.
(1) Cash costs consist of mining costs, processing costs, mine-level G&A, treatment and refining charges and royalties.
(2) AISC consists of cash costs plus sustaining and closure costs.
Dan Wilton, CEO of First Mining, stated “The updated PEA is an important advancement for the Springpole
Gold project, showcasing the Project’s potential size and scale. Springpole is one of a small number of
advanced stage development assets in Canada that has the potential to produce in excess of 400,000
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ounces of gold when in production. We are excited with th is positive development, as we continue to
advance and de-risk the Project.”
Readers are cautioned that the PEA is preliminary in nature and includes Inferred mineral resources that
are too speculative geologically to have economic considerations applied to them that would enable them
to be categorized as mineral reserves. There is no certainty that PEA results will be realized. Mineral
resources are not mineral reserves and do not have demonstrated economic viability.
Important PEA Parameters
Key Assumptions
Base Case Commodity Prices $1,300/oz Au, $20/oz Ag
Exchange Rate (C$ to US$) 0.75
Production Profile
Total Tonnes Processed (mt) 138.5
Total Tonnes Waste (mt) 319.0
Mill Grade - Gold, Silver 1.00 g/t Au, 5.28 g/t Ag
Mine Life 12 years
Throughput (tonnes per day) 36,000 tpd
Strip Ratio (waste:ore) 2.1 : 1
Overall Recovery - Gold, Silver 88% Au, 93% Ag
LOM Metal Recovered - Gold, Silver 3.9 mozs Au, 21.9 mozs Ag
Average Annual Production - Gold, Silver (Years 1 - 11) 356 kozs Au, 2.0 mozs Ag
Peak Production in Year 5 - Gold, Silver 529 kozs Au, 2.9 mozs Ag
Average Annual Production Years 2 to 9 - Gold, Silver 410 kozs Au, 2.4 mozs Ag
Unit Operating Costs (1)
LOM Average Cash Cost (2) $575/oz gold eq., $514/oz gold (by-product)
LOM Cash Cost plus Sustaining Cost (AISC) (3) $611/oz gold eq., $552/oz gold (by-product)
Project Economics - $1,300/oz Gold Price
NPV5% - Pre-Tax, After-Tax $1.23 billion, $841 million
IRR - Pre-Tax, After-Tax 26%, 22%
Payback Period from Production Date 3.4 years
LOM Cash Flow - Pre-Tax, After-Tax $2.10 billion, $1.49 billion
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Project Economics - $1,500/oz Gold Price
NPV5% - Pre-Tax, After-Tax $1.75 billion, $1.22 billion
IRR - Pre-Tax, After-Tax 33%, 28%
Payback Period from Production Date 2.9 years
LOM Cash Flow - Pre-Tax, After-Tax $2.88 billion, $2.05 billion
(1) All unit operating costs are shown on both equivalent as well as net of silver by-product credits
(2) Cash costs consist of mining costs, processing costs, mine-level G&A, treatment and refining charges and royalties
(3) AISC includes cash costs plus sustaining capital and closure costs
Economic Sensitivities
The Project economics and cash flows are highly sensitive to changes in the price of gold.
Springpole Economic Sensitivity to Gold Price
Gold Price (US$/oz) $1,200 $1,300 $1,400 $1,500
Pre-Tax NPV5% $972 million $1.23 billion $1.49 billion $1.75 billion
Pre-Tax IRR 23% 26% 30% 33%
After-Tax NPV5% $652 million $841 million $1.03 billion $1.22 billion
After-Tax IRR 19% 22% 25% 28%
Springpole Economic Sensitivity to Capital Costs
Initial Capital Costs +10% $809 million -10%
Pre-Tax NPV5% $1.15 billion $1.23 billion $1.32 billion
Pre-Tax IRR 24% 26% 29%
After-Tax NPV5% $773 million $841 million $909 million
After-Tax IRR 19% 22% 24%
Springpole Economic Sensitivity to Operating Costs
Operating Costs +10% $2.36 billion -10%
Pre-Tax NPV5% $1.07 billion $1.23 billion $1.39 billion
Pre-Tax IRR 24% 26% 28%
After-Tax NPV5% $726 million $841 million $956 million
After-Tax IRR 20% 22% 24%
For further detail regarding the updated PEA for Springpole, First Mining encourages readers to review
the full Report, which is available under First Mining’s SEDAR profile and on the Company’s website at
www.firstmininggold.com, and refers readers to the Company’s news release dated October 16, 2019 ,
which contains a summary of the results of the updated PEA.
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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 Gold Corp. is an emerging development company with a diversified portfolio of gold projects
in North America. Having assembled a large resource base of 7.4 million ounces of gold in the Measured
and Indicated categories and 3.8 million ounces of gold in the Inferred category in mining friendly
jurisdictions of eastern Canada, First Mining is now focused on advancing its material assets towards a
construction decision and, ultimately, to production. The Company currently holds a portfolio of 24
mineral assets in Canada, Mexico and the United States.
ON BEHALF OF FIRST MINING GOLD CORP.
Daniel W. Wilton
Chief Executive Officer and Director
For further information, please contact:
Mal Karwowska | Vice President, Corporate Development & Investor Relations
Direct: 604.639.8824 | 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 information” 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 forward- 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”, “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 at the Springpole Gold Project; (ii) the PEA
representing a viable development option for the Project; (iii) construction of a mine at the Project and related
actions, including dewatering activities; (i v) the potential for the Project to become one of Canada’s largest gold
mines 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 payba ck periods; (vi) the estimated amount of future
production, both produced and metal recovered; and (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.
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
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forth above, but generally these assumptions include: (i) the presence of and continuity of metals at the Project at
estimated grades; (ii) the geotechnical and metallurgical characteristics of rock conforming to sampled results,
including the quantities of water and the quality of 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 t he 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; (ix) 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
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, es timates assumptions and 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 limitatio n: (i) risks relating to
variations in the mineral content within the material identified as Mineral Resources 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) changes 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 First Nation groups); (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 i n 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 Information
Form for the year ended December 31, 201 8 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.
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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 of 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 the term " reserves”. Under
U.S. standards, mineralization may not be classified as a "reserve” unless the determination has been made that the
mineralization could be economically and legally produced or extracted at the time the reserve determination is
made. The S EC'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. It cannot be
assumed that all or any part of an "inferred mineral resource” will ever be upgraded to a higher category. Under
Canadian rules, estimated "inferred mineral resources” may not form the basis of feasibility or pre-feasibility studies
except in rare cases. Investors are cautioned not to assume that all or any part of an "inferred mineral r esource”
exists or is economically or legally mineable. Disclosure of "contained ounces” in a resource is permitted disclosure
under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not
constitute "res erves” 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 4 3-101 may not qualify as "reserves” under SEC standards.
Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made
public by companies that report in accordance with U.S. standards.