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 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: 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 330 koz Au. Average head grade is 0.94 g/t Au LOM; 1.09 g/t Au Yr 1-5. 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, 4.6 g/t Ag | 4,800,000 oz Au, 28,000,000 oz Ag |
| Inferred | 64,000,000 t | 0.38 g/t Au, 3.1 g/t Ag | 800,000 oz Au, 6,500,000 oz Ag |
Our Analysis
- IRR after-tax
- 40.8%
higher than 51% of 95 projects we track
- NPV after-tax
- $2.10B
- Initial capex
- $1.10B
53% of NPV
- Payback
- 1.8yrs
- Mine life
- 9.4yrs
- Discount rate
- 5%
- Study price assumption
- Gold: US$3,100/oz; Silver: US$35.50/oz; FX: 0.74
- Spot gold today
- $4,027.50/oz
A 40.8% after-tax IRR ranks in the upper half of the 95 gold projects we track and clears the practical financing hurdle for a single-asset junior by a wide margin. The 5% discount rate is at the low end of the reporting convention, which flatters the headline NPV; a higher, more conservative rate would compress the figure meaningfully. The $2.10B NPV sits at roughly 3.2x market cap—a gap that could signal the market has not yet priced in the project’s value, or that it is discounting financing, permitting, or execution risk. Ontario is a mining-friendly jurisdiction, which reduces political risk but does not eliminate it.
Initial capex of $1.10B is 53% of NPV, indicating moderate capital intensity; relative to a market cap well below that figure, funding risk is the primary concern. The 1.8-year payback is fast, which helps de-risk the financing timeline, but the 9.4-year mine life is short, limiting the project’s long-term cash flow runway. The study’s gold price assumption of $3,100/oz sits well below the current live spot of $4,027.50/oz, implying the returns are conservative on price—though the study may be relying on a longer-term average. The single most important watch-item is the ability to secure $1.10B in financing without excessive dilution, given the gap between NPV and market cap.
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.