First Mining Gold Corp. (FF:TSX) announced in a news release that the preliminary economic assessment (PEA) for its Springpole gold project in Ontario has been updated and is positive.
"This updated PEA is an important step forward as we continue to advance and de-risk the Springpole Gold Project. . .The results demonstrate a robust project, with further opportunity to improve on the economics through the optimization studies that will be completed as we advance the project through a prefeasibility study," CEO Dan Wilton said in the release.
The PEA outlines an open-pit mine and milling operation using $1,500 per ounce gold. Mine life would be 12 years plus 2.5 years of preproduction. Springpole would produce 410,000 ounces of gold annually during years two through nine.
The pretax net present value 5% would be an estimated $1.23 billion and the pretax internal rate of return, 26%.
As for estimated costs, initial capex would be $809 million were the owner to operate the mine. Sustaining capital for the life of mine would be $124 million along with $26 million for closure costs.
Per ounce of gold equivalent, life-of-mine direct operating cash cost would be $575 and the life-of-mine all-in sustaining costs would be $611. "The project has "a very attractive operating cost profile," the release noted.
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