Interview with Dan Wilton, CEO of First Mining Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/first-mining-gold-tsx-ff-5-million-financing-to-advance-springpole-duparquet-projects-4341

Recording date: 24th November 2023

First Mining Focused on Derisking Major Gold Assets While Awaiting Market Turn

Despite an ongoing challenging environment for junior gold developers, First Mining Gold continues efforts to advance its portfolio of Canadian projects. The company aims to have its Springpole and Duparquet assets “shovel-ready” in time to benefit from the next bull market cycle in precious metals.

Insiders including the CEO and Chairman recently backed these strategic plans, contributing over $2 million as part of First Mining’s latest $10 million financing. The raised capital will focus predominantly on critical path permitting and engineering at Springpole and Duparquet over the near-term horizon.

Springpole contains one of the largest undeveloped gold deposits in Canada with existing resources to support a 36,000 tonne per day operation for 14 years. The 2021 pre-feasibility study outlined robust project economics including a net present value (NPV at 5%) of $1.5 billion and internal rate of return (IRR) of 29% at base case $1,500/oz gold.

Meanwhile Duparquet located in Quebec’s prolific Abitibi mining region could support a 15,000 tonne per day underground operation producing over 200,000 ounces per year. The fall 2022 preliminary economic assessment (PEA) generated an NPV of $579 million and 17.5% IRR based on $1,600/oz gold.

Financing and constructing either project remains challenging in the current environment, resulting in First Mining’s market capitalization drastically lagging projected asset values. Nonetheless, achieving de-risking milestones around engineering, permitting, and economic studies aims to enhance attractiveness for partnerships or takeovers.

Management currently targets a key environmental assessment (EA) approval for Springpole by mid-2025 to align with expectations for improving precious metals markets. Similarly, the recently released positive Duparquet PEA sets the foundation for this project’s next stage of due diligence by larger entities.

The insider backing provides sufficient working capital for the interim period where accessing external capital poses difficulties. While dilution still results for existing shareholders at depressed prices, project advancement supports efforts to realize value from Springpole and Duparquet in a multi-year timeframe.

First Mining’s portfolio combined with insider confidence makes it an intriguing leveraged play on the pending turn in sentiment across the gold developer sector. Once bullish tailwinds reemerge, assets of this scale in tier-one jurisdictions could stage pronounced share price rebounds. Starting engineering and design work before costs inflate again seems sensible for positioning the next wave of potential mines.

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View First Mining Gold's company profile: https://www.cruxinvestor.com/companies/first-mining-gold

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