Springpole Gold Project PFS: $2.10B NPV, 40.8% IRR
First Mining Gold Corp.'s Springpole Gold Project in Ontario, Canada has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $2.10B, an after-tax IRR of 40.8%, and initial capital of $1.10B. The mine plan runs 9.4 years at about 281 koz Au per year.
First Mining Gold Corp.'s Springpole Gold Project has reported Pre-Feasibility Study (PFS) results for the gold project in Ontario, Canada. The study headlines an after-tax net present value of $2.10B at a 5% discount rate. It reflects First Mining Gold Corp.'s (FF.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $2.10B using a 5% discount rate. After-tax IRR is 40.8%. Initial capital expenditure is estimated at $1.10B, with life-of-mine sustaining capital of $323M. The study models a payback period of 1.8 years. All-in sustaining costs are pegged at 938 USD/oz. Economics are based on Base Case: Gold US$3,100/oz, Silver US$35.50/oz, FX C$:US$ 0.74.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 9.4 years. Average annual production is approximately 281 koz Au. Average head grade is 0.94 g/t Au LOM. Metallurgical recovery averages 86%. The open-pit strip ratio is 3.0 w:o.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from First Mining Gold Corp.'s technical disclosures and reflect the most recent PFS on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Probable | 102,000,000 tonnes | 0.94 g/t Au, 4.90 g/t Ag | 3,100,000 oz Au, 16,100,000 oz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 191,000,000 tonnes | 0.78 g/t Au; 4.6 (Ag) | 4,800,000 oz Au; 28,000,000 oz Ag |
| Inferred | 64,000,000 tonnes | 0.38 g/t Au; 3.1 (Ag) | 800,000 oz Au; 6,500,000 oz Ag |
Our Analysis
- IRR after-tax
- 40.8%
higher than 57% of 107 projects we track
- NPV after-tax
- $2.10B
higher than 90% of 143 projects we track
- Initial capex
- $1.10B
53% of NPV
costlier than 93% of 141 projects we track
- Payback
- 1.8yrs
slower than 38% of 87 projects we track
- Mine life
- 9.4yrs
- Discount rate
- 5%
- Study price assumption
- Base Case: Gold US$3,100/oz, Silver US$35.50/oz, FX C$:US$ 0.74
- Spot gold today
- $4,478.90/oz
The build cost is the story. At roughly 1.2x the company’s entire US$905M market cap, the US$1.10B initial capex cannot be quietly absorbed; it requires external capital on a scale that will define the equity outcome. With an NPV about 2.3x market cap, the asset is large enough to justify the raise, but that gap cuts both ways: it signals either a market not crediting the project, or skepticism about the financing path itself. A diversified portfolio of five tracked projects helps, but it does not shrink the cheque. Realistically, this gets paid for through a combination of project debt, a strategic gold-streaming partner, or a significant equity issuance that will dilute existing holders meaningfully. The 1.8-year payback is the mitigating factor, shortening the window of balance-sheet stress.
The economics are strong enough to support that financing story, though the study stage tempers enthusiasm. A 40.8% after-tax IRR ranks in the upper half of the 107 gold projects tracked, and the US$2.10B NPV sits above 90% of the 143-project peer set. The 9.4-year mine life is respectable but not exceptional, suggesting a durable, mid-sized asset rather than a generational deposit. Two caveats matter. First, this is a PFS, with estimates in a roughly plus or minus 25% band, not a build decision. Second, the study uses a 5% discount rate, the low end of convention, which flatters the headline NPV; the IRR, not the NPV, is the better lens here, and it clears the practical ~15% project-finance hurdle by a wide margin.
Ontario is a low-risk jurisdiction, which should ease both permitting and lender appetite. The base-case gold price of US$3,100/oz sits well below the current spot of US$4,478.90/oz, so the returns carry embedded upside if prices hold, though that also means the financing case is being made at a conservative price. The single question that decides this project: can management secure the capital structure without giving away so much equity that the 2.3x NPV-to-market-cap gap closes in favor of new investors rather than existing holders?
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.