Springpole Project

Project Overview:

The Springpole Gold Project is located in northwestern Ontario on an area of approximately 800 hectares. The broader project land package covers an area of 41,943 hectares and consists of 30 patented mining claims, 282 mining claims and thirteen mining leases. The project is located approximately 110 kilometres northeast of the Municipality of Red Lake in northwestern Ontario and is situated within the Birch-Uchi Greenstone Belt. The large, open pit resource is supported by significant infrastructure, including an 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, and 16 Mt at 0.54 g/t Au and 2.8 g/t Ag, totalling 0.3 million ounces of gold and 1.4 million ounces of silver in the Inferred Mineral Resource category, the Springpole Gold Project is one of the largest undeveloped gold projects in Ontario.

Birch Uchi Greenstone Belt Project:

The Birch-Uchi Greenstone Belt Project (“BUGB Project”) represents regional scale exploration opportunities that have been consolidated by First Mining surrounding the Springpole Project. This land tenure coupled with the Springpole Project, also located in the Birch-Uchi Greenstone Belt, consists of >70,000 hectares and presents a strong opportunity for new discoveries in an area that is historically underexplored and has only seen a fraction of the exploration work that has been done in the neighbouring Red Lake and Pickle Lake greenstone belts that have been subject to earlier consolidation and discovery cycles.

The BUGB Project hosts significant geologic elements, including historic production centres that are demonstrative of a strong gold endowment and affinity for new discovery.  First Mining’s extensive BUGB property position is located within the Red Lake Mining District and is situated approximately 80 km east of the Red Lake Mines Complex of Evolution Mining and 75 km northeast of Kinross Gold’s Dixie Project (formerly owned by Great Bear Resources Ltd).  The geology of the region is comprised of Archean Greenstone terranes that are endowed by significant gold mineralization inclusive of orogenic and alkaline intrusion related deposit styles. Initial data compilation and validation to date has indicated that the region demonstrates an underexplored and previously fragmented exploration immaturity that is well levered to the Company’s strategy of consolidation and district screening. 

First Mining has initiated district-scale screening of the Birch-Uchi Project area through a multi-phase commitment to explore and enhance mineral potential within the region.

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