First Mining tables positive PEA at Springpole

A preliminary economic assessment (PEA) of First Mining Finance’s (TSX: FF) wholly owned Springpole gold-silver project, 110 km north east of Red Lake, […]
A preliminary economic assessment (PEA) of First Mining Finance’s (TSX: FF) wholly owned Springpole gold-silver project, 110 km north east of Red Lake, Ont., has yielded positive results, the company said on Sept. 21. SRK Consulting prepared the study. It indicates the project may have economic viability, with a 36,000 tonne per day processing plant operating over a 12 year lifespan.  To begin production would cost First Mining an initial US$586 million in capital expenditures followed by US$117 million in sustaining capital for a total of US$703 million plus closure and reclamation costs estimated at US$20 million. The study says it would take three and a half years to see return of the initial capital. The company says the project has “excellent margins” with low cash costs of US$619 per oz. of gold equivalent and an average annual payable production of 322,000 oz. of gold equivalent over the life of mine. The study estimates Springpole could annually produce 296,500 oz. payable gold and 1.6 million oz. payable silver. The study calculates the after tax net present value using a 5% discount rate at US$792 million and an after tax internal rate of return at 32.3%. Continue reading at The Northern Miner.

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