trending Market Intelligence /marketintelligence/en/news-insights/trending/Mac0OIpABYNh0j05AVj-Rw2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

First Mining's updated assessment improves value of Springpole gold project

Mining Insights Newsletter June 2020

A Decade of Underperformance for Gold Discoveries

State of the Market: Mining Q1-2020

Mining Exploration Insights - April 2020


First Mining's updated assessment improves value of Springpole gold project

First Mining Gold Corp.'s updated preliminary economic assessment for its Springpole gold-silver project in Ontario outlined a posttax net present value of US$841 million, discounted at 5%, with an internal rate of return of 22% and a 3.4-year payback period from production.

The study, which is based off a gold price of US$1,300 per ounce and a silver price of US$20 per ounce, considers an open-pit mine and milling operation, reflecting updated metallurgical test work that has demonstrated the potential for improved recoveries.

A 2017 preliminary economic assessment for the project outlined an after-tax net present value of US$792 million, at a 5% discount rate, with payback of 3.5 years and an internal rate of return of 26.2% for the base-case scenario.

The company added Oct. 16 that Springpole is expected to have a 2.5-year pre-production period, with a total of 3.9 million ounces gold and 22 million ounces silver to be recovered over a 12-year mine life.

Average annual gold production over the mine life increased to 356,000 ounces of gold and 2.0 million ounces of silver, from 296,500 ounces of gold and 1.6 million ounces of silver anticipated previously.

Initial capital costs are estimated at US$809 million, with life-of-mine sustaining capital costs of US$124 million, up from initial capex of US$586 million and sustaining capex of US$117 million. Expected closure costs also rose to US$26 million from US$20 million.

Meanwhile, all-in sustaining costs are pegged at US$611/oz of gold equivalent, and direct operating cash costs at US$575/oz of gold equivalent.