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 330 koz Au (years 1-5; LOM avg 281 koz) 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 Gold US$3,100/oz; Silver US$35.50/oz; FX C$:US$ 0.74 (spot case US$4,200/oz Au, $51/oz Ag, 0.71 FX).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 9.4 years. Average annual production is approximately 330 koz Au (years 1-5; LOM avg 281 koz). Average head grade is 0.94 g/t Au LOM; 1.09 g/t Au years 1-5; 4.9 g/t Ag. Metallurgical recovery averages 86%. The open-pit strip ratio is 3.0:1.
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 t | 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 t | 0.78 g/t Au (Ag: 4.6 g/t) | 4,800,000 oz Au (Ag: 28,000,000 oz) |
| Inferred | 64,000,000 t | 0.38 g/t Au (Ag: 3.1 g/t) | 800,000 oz Au (Ag: 6,500,000 oz) |
Our Analysis
- IRR after-tax
- 40.8%
higher than 58% of 121 projects we track
- NPV after-tax
- $2.10B
higher than 88% of 194 projects we track
- Initial capex
- $1.10B
53% of NPV
costlier than 90% of 176 projects we track
- Payback
- 1.8yrs
slower than 40% of 105 projects we track
- Mine life
- 9.4yrs
- Discount rate
- 5%
- Study price assumption
- Gold US$3,100/oz; Silver US$35.50/oz; FX C$:US$ 0.74 (spot case US$4,200/oz Au, $51/oz Ag, 0.71 FX)
- Spot gold today
- $4,051.30/oz
A US$1.10B build against a company worth roughly US$685M is the fact that governs this project. The initial capex is about 1.6x the entire market cap, so this cannot be funded quietly from the balance sheet: it needs a partner, a large debt package, an equity raise that meaningfully dilutes existing holders, or some combination of all three. That is the real decision point, and it sits well ahead of any production timeline. The mitigating detail is that this is one of seven projects the company tracks, so the cheque does not have to be written against a single asset's risk, but a diversified portfolio does not shrink the absolute size of the commitment.
The economics underneath are sound enough to make the funding conversation worth having. An after-tax NPV of US$2.10B ranks above 88% of the 194 gold projects we track, the 40.8% after-tax IRR sits in the upper half of the 121 we compare, and payback at 1.8 years is faster than most. Against the roughly 15% after-tax return developers typically need to attract project finance, the margin is wide. Capex at 53% of NPV is moderate rather than punishing, and lower than most of the gold projects we track on that measure. The study is a PFS, though, so the estimate carries a plus or minus 25% band and is not yet a build decision.
Two things temper the read. The study prices gold at US$3,100/oz against a live spot of US$4,051.30/oz, so the returns are not leaning on an optimistic deck; if anything there is room for upside at today's market. But a 9.4-year mine life is short for an asset of this scale, which limits how much of the build cost the operation can amortise before it needs extending or re-investing. Ontario is a mining-friendly jurisdiction, which helps permitting and financing. The question that decides this: can the company convert a US$2.10B NPV into a funded, non-dilutive construction plan before the equity story stalls?
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.
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