First Mining Announces Positive Preliminary Economic Assessment for the Duparquet Gold Project, Quebec, Canada
Press Release
September 7, 2023 – Vancouver, Canada – First Mining Gold Corp. (“First Mining” or the “Company”) (TSX: FF) (OTCQX: FFMGF) (FRANKFURT: FMG) is pleased to announce the positive results of a Preliminary Economic Assessment (“PEA”) completed for its 100%-owned Duparquet Gold Project (the “Project” or “Duparquet”) located in the Abitibi region of Quebec, Canada. The PEA results support a 15,000 tonnes per day open pit and underground mining operation over an 11-year mine life. The PEA only considers the Duparquet gold deposit located on the Beattie, Donchester, Central Duparquet and Dumico claim blocks and does not include the Pitt Gold and Duquesne deposits (see Mineral Resource Estimate section).
PEA Highlights
- C$1.07 billion pre-tax NPV5% and C$588 million after-tax NPV5% at US$1,800/oz gold (“Au”)
- 24.9% pre-tax IRR; 18.0% after-tax IRR at US$1,800/oz Au
- Annual Life-of-Mine (“LOM”) recovered gold production of 233 koz
- Total LOM recovered gold of 2.5 Moz over an 11-year mine life
- Pre-tax payback of 3.8 years; after-tax payback of 4.8 years
- Initial capital costs estimated at C$706 million; sustaining and underground development capital costs estimated at C$738 million
- Average annual LOM Total Cash Cost of US$751/oz(1); average annual LOM All-In Sustaining Costs (“AISC”) of US$976/oz(2)
Note: Base case parameters assume a gold price of US$1,800/oz and an exchange rate (C$ to US$) of 1.33. All currencies are reported in Canadian 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 G&A, treatment and refining charges and royalties.
(2) AISC includes total cash costs plus sustaining capital, development capital and closure costs.
“This PEA demonstrates the robust economic potential of the Duparquet Gold Project,” stated Dan Wilton, CEO of First Mining. “The +200 koz per year production profile, attractive capital and operating cost profile and strategic location of the deposit in the heart of the Abitibi gold belt all contribute to the recognition of Duparquet as one of the most meaningful development projects in Canada. We are also pleased to have completed such a robust PEA within a year of consolidating the ownership of the Project. Importantly, the Duparquet Gold Project represents a unique opportunity to address the environmental legacy issues from the historic mining operations while delivering an important economic development opportunity for the local and Indigenous communities around the Project. We look forward to continuing to work with regulators, the Municipality of Duparquet and other local and Indigenous communities to advance this parallel track of environmental stewardship and economic development.”
This PEA for the Duparquet Gold Project was prepared by G Mining Services Inc. of Montreal, Quebec, in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), and a technical report for the PEA will be filed by the Company on SEDAR+ within 45 days of this news release.
PEA Overview
The Duparquet Gold Project, located in the Abitibi region of Quebec, Canada, is one of the largest undeveloped gold projects in North America. The Project is located immediately north of the town of Duparquet which is approximately 50 kilometres northwest of Rouyn-Noranda, Quebec, a major mining service centre and home to the only remaining copper smelter in Canada. Duparquet currently hosts 3.4 million ounces of gold in the Indicated Mineral Resource category and 2.7 million ounces of gold in the Inferred Mineral Resource category, as set out in Table 5 in the Mineral Resource Estimate section.
The PEA evaluates recovery of gold from a 15,000 tonne-per-day (“tpd”) open pit and underground mining operation, with a process plant that includes crushing, grinding, and flotation, producing a concentrate for sale.
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