Springpole Project

Project Overview:

The Springpole Gold Project covers an area of 41,943 hectares in northwestern Ontario, and consists of 30 patented mining claims, 282 mining claims and thirteen mining leases. Additional mining claims surrounding the Project were acquired by First Mining in 2021, totaling another 9,200 hectares. The project is located approximately 110 kilometres (“km”) northeast of the Municipality of Red Lake in northwestern Ontario and is situated within the Birch-Uchi Greenstone Belt. The large, open pittable resource is supported by significant infrastructure, including a 34-person onsite camp, winter road access, a logging road within 18 km of the camp, and nearby power lines within 40 km.

With 151 Mt at 0.94 g/t Au and 5.0 g/t Ag, totalling 4.6 million ounces of gold and 24.3 million ounces of silver in the Indicated Mineral Resource category, the Springpole Gold Project is one of the largest undeveloped gold projects in Ontario.

Project Highlights:

• One of the largest, undeveloped, open-pit gold deposits in Canada
  • Reserves of 3.8 million ounces gold at 0.97 g/t, 20.5 million ounces of silver at 5.2 g/t
  • Average annual gold production of 335,000 ounces in years 1 through 9
• Positive Economics, +11 year mine life
  • PFS announced January 2021, post-tax NPV_5%  of $995 million and post-tax IRR of 29%
• Tier 1 Mining Jurisdiction
  • Long history of gold production in the area
• Unique Strategic Gold Asset
  • One of the few projects in Canada able to produce more than 300,000 oz per year
• Existing Infrastructure in Place
  • 34-person exploration camp, winter road access, a logging road within 18 km of the camp, and nearby power lines within 40 km

2021 Pre-Feasibility Study (PFS) Highlights¹⁾:

The PFS contemplates an open pit mine and milling operation, evaluating recovery of gold and silver from a 30,000 tonne-per-day operation, with a process plant that includes 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 bullion.

The PFS 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.

View the report here

Key PFS 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 NPV_5% 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$1600/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: Proven and Probable Reserves of 3.8 Moz Au, 20.5 Moz Ag (121.6 Mt at 0.97 g/t Au, 5.23 g/t Ag)
• LOM metal recovered 3.2 Moz Au, 18.1 Moz Ag; 3.0 Moz Au (LOM), 16.1 Moz Ag (Years 1 to 9)
• Initial capital costs estimated at US$718 million; Sustaining capital costs at US$55 million; plus another US$29 million in closure costs
• Annual payable gold production of 335 koz (Years 1 to 9); 287 koz (LOM)
• Low strip ratio of 2.22 to 1 (Years 1 to 9); 2.36 to 1 (LOM)
• Mill head grade of 1.12 g/t Au and 5.7 g/t Ag (Years 1 to 9); 0.97 g/t Au and 5.2 g/t Ag (LOM)
• Overall recoveries of 87% for gold and 90% for silver (Years 1 to 9); and 86% for gold and 90% for silver (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⁾  

Springpole Mineral Resources (inclusive of Mineral Reserves)

The Mineral Reserves for Springpole are based on the conversion of Measured and Indicated resources within the current Springpole PFS pit design. The Springpole Gold Project Mineral Reserves are shown below:

Springpole Mineral Reserves