First Mining Gold - Unlocking Value in Canada's Largest Undeveloped Gold Projects as Permitting Milestones Approach

• First Mining Gold is advancing two of Canada's 10 largest undeveloped gold projects - Springpole in Ontario and Duparquet in Quebec.
• The company submitted a draft Environmental Assessment (EA) for Springpole in May 2022 and is working towards submitting the final EA in late summer 2024.
• Key focus areas include fish habitat management, caribou habitat, water quality modeling, and engagement with local Indigenous communities.
• The EA approval process is expected to take about 16 months after final submission, with various milestones along the way.
• First Mining is working to develop community benefits and infrastructure improvements like road upgrades as part of the project.

Why Investors Should Consider Gold Mining Opportunities

Introduction

As global economic uncertainties persist and inflationary pressures mount, many investors are turning their attention to gold as a potential safe haven and store of value. Within the gold sector, junior mining companies focused on developing large-scale projects in stable jurisdictions offer an intriguing opportunity for those seeking leveraged exposure to potential increases in the gold price. One such company making steady progress on advancing two significant gold projects in Canada is First Mining Gold Corp.

Springpole Project Overview

Located approximately 110 kilometers northeast of Red Lake, Ontario, Springpole is one of the largest undeveloped open-pit gold projects in North America. The project boasts a significant resource base and has the potential to become a major new source of gold production in Canada.

Steve Smith, Vice President of Sustainability at First Mining Gold, highlighted the company's methodical approach to advancing Springpole:

"We haven't stopped our work. So sometimes you'll see a proponent and maybe they don't have the experience in that kind of a process, but they'll say, well, I published a draft EA. I have a lot of baseline environmental information. I think we're good. But we've taken the approach that we need to continue that data set building."

This commitment to ongoing data collection and environmental studies demonstrates First Mining's thoroughness in project development and potential de-risking of the permitting process.

Environmental Assessment Progress

First Mining submitted a draft Environmental Assessment (EA) for Springpole in May 2022, marking a significant milestone in the project's advancement. The draft EA, comprising over 10,000 pages of documentation, provided a comprehensive overview of baseline environmental data, potential project impacts, and proposed mitigation measures.

Since the draft submission, the company has been actively engaging with regulators, Indigenous communities, and other stakeholders to address comments and questions. Smith noted that they have received approximately 2,000 comments to date, which he views as a positive sign of engagement:

"To put that into context, in my mind, it's right in the ballpark of where we want to be and should be. You know, I kind of benchmark that against the Hard Rock project that I did prior to First Mining with a lot of the team members that we have here, we received up until the final EA about 2,500 comments and questions on that project."

Key Focus Areas

Through the ongoing engagement process, several key focus areas have emerged for further study and optimization:

1. Fish Habitat Management: Given Springpole's location near water bodies, developing effective fish habitat offsetting and compensation plans is crucial. The company is drawing on lessons learned from other successful projects in Northern Canada.
2. Caribou Habitat: Northwestern Ontario is home to boreal caribou populations. First Mining has initiated a four-year satellite telemetry collaring program to better understand and mitigate potential effects on caribou movement and habitat use.
3. Water Quality: Extensive modeling and engineering work has been conducted to ensure proper water management and treatment throughout the project's life cycle.
4. Community Engagement: Ongoing dialogue and capacity-building initiatives with local Indigenous communities are a top priority for First Mining.

Path to Final EA Submission

First Mining is targeting submission of the final Environmental Assessment for Springpole in the latter half of 2024, likely towards the end of summer. This document is expected to be even more comprehensive than the draft, potentially reaching 12,000-14,000 pages.

Smith emphasized the importance of getting the final EA right, rather than rushing to meet an arbitrary deadline:

"We're targeting the end of the summer, but we want to get it right. That is the most important factor here. It's hard to put a date on something and say, OK, well, September 21st."

The Approval Process

Once the final EA is submitted, it will trigger the formal federal and provincial regulatory review processes. Based on benchmarking against similar projects, First Mining anticipates the approval process could take approximately 16 months. This would potentially position Springpole for an approval decision in late 2025.

It's important for investors to understand that this is not simply a binary "yes or no" process at the end of 16 months. There are several interim milestones and opportunities for the company to demonstrate progress:

1. Conformity Review: Regulators will first assess whether the EA conforms to the required guidelines.
2. Technical Review: A thorough examination of the technical adequacy of the information presented.
3. Information Requests: Multiple rounds of questions and clarifications from regulators.
4. Draft Conditions: Regulators will propose potential conditions for project approval.
5. Ministerial Decision: The final step in the process.

Community Engagement & Benefits

A critical aspect of Springpole's development is First Mining's engagement with local Indigenous communities, particularly Cat Lake First Nation and Slate Falls Nation. The company is supporting community-led reviews and assessments of the project, recognizing the importance of obtaining community consent and support.

Dan Wilton, CEO of First Mining Gold, highlighted the broader opportunities the project could bring to the region:

"This is an underserviced region of Northwestern Ontario in many different respects. And it's infrastructure, it's health and social services. So we're trying to take a bit of a broader view here and figure out how do we bring all these pieces of the puzzle together and kind of leverage that to deliver broader benefits to communities aside from just, okay, well, we're going to have jobs at the mine site."

One specific example is the potential for improved road infrastructure connecting communities like Cat Lake to Sioux Lookout, addressing longstanding transportation challenges in the region.

Duparquet Project: A Second Growth Avenue

While Springpole remains the primary focus, First Mining is also advancing the Duparquet project in Quebec's prolific Abitibi Greenstone Belt. Located approximately 50 kilometers north of Rouyn-Noranda, Duparquet represents another significant gold development opportunity for the company.

Although details on Duparquet were limited in this discussion, its inclusion in First Mining's portfolio provides investors with exposure to a second major gold project in another mining-friendly Canadian jurisdiction.

De-risking Through Experience

One of First Mining's key strengths is the experience of its management team in successfully navigating the permitting process for large-scale mining projects in Canada. Steve Smith, for instance, has worked on similar projects, bringing valuable insights to Springpole's development.

This experience allows the company to anticipate potential challenges and proactively address them, potentially reducing execution risk for investors.

Market Perception & Catalysts

Despite the steady progress being made at Springpole, there appears to be a disconnect between the company's achievements and market valuation. Dan Wilton addressed this issue:

"There aren't many other projects in Canada of our size and scale that are this far advanced, particularly at Springpole. There really are not many other large projects that have done all of this work."

As First Mining continues to hit key milestones in the EA and permitting process over the next 18 months, there may be opportunities for the market to reassess the company's value proposition. Each successful step could serve as a potential catalyst for revaluation.

Conclusion

First Mining Gold presents an interesting opportunity for investors seeking exposure to large-scale gold development projects in Canada. The company's methodical approach to advancing Springpole, combined with its experienced management team and commitment to community engagement, positions it well to navigate the complex permitting process.

While risks remain, as with any mining development project, First Mining's progress to date and the potential for multiple near-term catalysts make it a company worth monitoring for investors interested in the gold sector. As the company approaches key milestones in late 2024 and throughout 2025, the market may begin to more fully recognize the value potential of Springpole and Duparquet.

The Investment Thesis for First Mining Gold

• Large-scale projects: Exposure to two of Canada's 10 largest undeveloped gold projects, offering significant leverage to potential increases in gold prices.
• De-risked development: Experienced management team with a track record of successfully permitting similar projects in Canada.
• Near-term catalysts: Multiple milestones expected over the next 18 months, including final EA submission and progress through the approval process.
• Community support: Proactive engagement with local Indigenous communities, potentially reducing social license risks.
• Undervalued opportunity: Current market valuation may not fully reflect the progress made and near-term potential catalysts.

First Mining Gold is steadily advancing its Springpole project through the environmental assessment and permitting process, with final EA submission targeted for late summer 2024. The company's experienced management team, methodical approach to project development, and commitment to community engagement position it well to navigate the complex regulatory landscape. With multiple catalysts on the horizon and potential for market revaluation as milestones are achieved, First Mining presents an intriguing opportunity for investors seeking exposure to large-scale gold development projects in stable jurisdictions. However, as with any junior mining investment, careful due diligence and an understanding of the inherent risks are essential.

Gold Macro Thematic Analysis

The global macroeconomic environment continues to present a compelling case for gold as both a safe-haven asset and a potential hedge against inflation. Persistent geopolitical tensions, ongoing supply chain disruptions, and the uncertain trajectory of interest rates have all contributed to a heightened sense of economic uncertainty.

In this context, gold mining companies, particularly those focused on developing large-scale projects in stable jurisdictions, offer investors a leveraged opportunity to gain exposure to potential increases in the gold price. Canada, with its rich mineral endowment and well-established mining industry, stands out as an attractive destination for gold development projects.

First Mining Gold's Springpole and Duparquet projects exemplify the type of opportunities available in this space. These large, undeveloped gold deposits in mining-friendly jurisdictions have the potential to become significant new sources of gold production in North America. As the global demand for gold remains strong and the pipeline of new major gold mines continues to shrink, projects like Springpole could become increasingly valuable.

Moreover, the growing emphasis on responsible mining practices and community engagement aligns well with the evolving expectations of investors and stakeholders. First Mining's proactive approach to environmental stewardship and Indigenous relations demonstrates an understanding of these critical factors in modern mine development.

This scarcity of advanced, large-scale gold projects in stable jurisdictions underscores the potential value proposition for investors. As First Mining continues to de-risk Springpole through the permitting process, it may represent an attractive entry point for those seeking exposure to the gold development space ahead of potential project approval and construction decisions.