First Mining Gold - Advancing Major Gold Projects in Canada

About First Mining Gold

First Mining Gold Corp. (TSX: FF) is a Canadian gold development company focused on advancing a portfolio of high-quality assets in mining-friendly jurisdictions. Headquartered in Vancouver, First Mining was founded in 2015 and is led by an experienced management team and board with decades of combined experience exploring, developing, and financing gold mining projects around the world.

First Mining's current portfolio includes two advanced stage, multi-million ounce gold development projects located in Ontario and Quebec. These large, strategically located assets in stable Canadian jurisdictions form the cornerstone of First Mining's strategy to create value for shareholders during the next phase of the gold market cycle. By continuing to de-risk and advance its projects towards production, First Mining's goal is to realize superior returns through asset monetization at a time when new gold development opportunities are scarce globally.

Interview with Chief Executive Officer, Dan Wilton

Springpole Project: Cornerstone Asset with a Clear Path to Production

The cornerstone asset in First Mining's portfolio is the Springpole gold project located in northwestern Ontario. Springpole hosts one of the largest undeveloped open-pittable gold deposits in Canada, with 151 Mt at 0.94 g/t Au and 5.0 g/t Ag, totalling 4.6 million ounces of gold and 24.3 million ounces of silver in the Indicated Mineral Resource category, and 16 Mt at 0.54 g/t Au and 2.8 g/t Ag, totalling 0.3 million ounces of gold and 1.4 million ounces of silver in the Inferred Mineral Resource category.

A Pre-Feasibility Study completed in 2019 outlines a large-scale open pit mining operation at Springpole capable of producing 335,000 ounces of gold per year on average over an initial 9-year mine life. At a gold price of USD$1,600 per ounce, the after-tax NPV_5% of the project is estimated at USD$995 million with an after tax IRR of 29.4%.

According to CEO Dan Wilton, Springpole is exactly the type of large, scalable project that major producers are looking for to fill looming production gaps in the mid-2020s. With over $175 million invested to advance the project to date, Springpole represents a cost-effective growth opportunity for a potential acquirer.

A key focus for First Mining is continuing to de-risk Springpole by advancing the environmental assessment process. The company remains on track to submit the final Environmental Impact Statement (EIS) to regulators in mid-2024. Successfully obtaining federal and provincial environmental approvals will significantly enhance the value of Springpole by giving potential partners confidence that it can be permitted in a reasonable timeframe.

While feasibility-level engineering work at Springpole has been paused during the current market downturn, the existing studies provide a solid foundation on which to move forward once development funding is secured. The project benefits from excellent infrastructure, with access to grid power and all-season roads. Engagement with Indigenous communities is ongoing, and Impact Benefit Agreements are targeted for completion prior to construction.

According to Wilton, Springpole is poised to be one of the first large-scale gold projects ready for development when sentiment improves in the mining industry. Its size, scope, and advanced stage of permitting make it a prime target for acquisition by a major looking to add a cornerstone asset to their pipeline.

Duparquet Project: Emerging District-Scale Opportunity in Quebec

First Mining's second core asset is the Duparquet gold project located on the highly productive Abitibi Greenstone Belt in Quebec. Duparquet hosts an estimated combined open pit and underground measured and indicated resource of 3.4 million ounces of gold and inferred resources of 2.6 million ounces.

An initial Preliminary Economic Assessment (PEA) completed in September 2023 demonstrates the potential for a sizable open-pit mining operation at Duparquet. The PEA outlines a 15,000 tonne per day mill processing ore from three deposits to produce 233,000 ounces of gold per year over an initial 11-year mine life.

According to the PEA, Duparquet has robust economics at current gold prices, with an after-tax NPV_5% of CAD$588 million (at US$1,800/oz gold) and a post tax IRR of 18% at $1,800 per ounce gold. The upfront capital cost is estimated at C$706 million.

Significantly, the PEA study does not yet account for the full multi-million ounce potential of the Duparquet property. The project covers a largely underexplored district spanning 10 kilometers of strike length along the prolific Destor-Porcupine Fault Zone. First Mining believes there is strong potential to expand resources and mine life through stepped up exploration drilling.

While further work is required to advance Duparquet to the pre-feasibility and permitting stages, the PEA provides an initial blueprint for unlocking the value of this strategic, district-scale asset. According to CEO Dan Wilton, Duparquet offers a second tier-one development project that will strengthen First Mining’s position as a leading Canadian gold developer.

Funding Progress Towards Near-Term Catalysts

With two flagship assets primed for advancement, First Mining is focused on securing sufficient funding to achieve key de-risking milestones at Springpole and Duparquet over the next 12-24 months.

In October 2023, the company closed a $5 million private placement priced at $0.125 per share to support ongoing project development work. The raise was strongly supported by existing institutional investors. Each share will also get a $0.20 warrant. While dilution is a consideration at the current share price, Wilton emphasizes that attractive capital sources must be utilized to advance Springpole and Duparquet to their next value-enhancing stages.

First Mining can further supplement its treasury through partnering opportunities and royalty/streaming transactions on non-core assets within its broader portfolio. The company recently monetized a 2% NSR royalty on its Goldlund gold project in Ontario for $5 million in shares of Treasury Metals. Additional deals of this nature can provide non-dilutive sources of funding for flagship project advancement while retaining upside exposure.

Over the next 12 months, key near-term catalysts for First Mining include:

• Completing the Springpole environmental assessment process, with final EIS submission targeted by mid-2024
• Continuing exploration drilling at Duparquet to grow resources and advance the project to pre-feasibility in a rising gold market
• Completing updated economic studies for both Springpole and Duparquet to demonstrate project robustness at higher gold prices
• Advancing Indigenous consultations and permitting for both projects
• Marketing Springpole and Duparquet to major and mid-tier producers seeking to add advanced development assets

As these catalysts are achieved, First Mining expects the underlying value of its portfolio to become increasingly apparent. This should set the stage for transformative M&A interest from producers looking to secure scarce tier-one gold development opportunities in mining-friendly Canadian jurisdictions.

Conclusion: Positioned to Realize Value in the Next Gold Market Upswing

With robust projects, key permitting milestones in sight, and drilling upside, First Mining Gold is poised to be among the biggest beneficiaries of a rising gold market. As major producers seek to replenish their project pipelines later this decade, few companies can offer advanced development opportunities of the scale and quality that Springpole and Duparquet represent.

After several muted years for gold equities, First Mining has persevered through challenging markets to continue advancing its assets. Thanks to this persistence, the company now finds itself at the front of the line with permits in hand just as sentiment appears poised to improve in the gold sector.

For investors with a positive outlook on the gold price cycle, First Mining offers exceptional leverage to an upswing in developer valuations. The company's shares currently trade at a fraction of the inherent value of its Tier I gold assets. As gold fundamentals realign with project scarcity dynamics in the coming years, First Mining is in an enviable position to realize substantial returns for its shareholders.