First Mining Gold declares reserves, completes pre-feasibility
First Mining Gold (FF.TO) completed a pre-feasibility study at the Springpole project in Ontario, Canada.
Dan Wilton, CEO of First Mining Gold, said that the project will add about $1 billion in value to the company.
“At $1,600 gold price, just shy of a billion dollar net present value [NPV], all-in sustaining costs for the first nine years of the mine life under $600 an ounce, so very, very robust project and sizeable,” he said. “It’s in its permitting process. It’s capable of producing 300,000 ounces a year.”
First Mining Gold was founded by Keith Neumeyer, CEO of First Majestic Silver, in 2015.
“They had a business model in 2015, 2016, which we remember as terrible times in the industry, of gathering up as many good projects as they could at $10 an ounce. So, they acquired this portfolio and was really gifted this unbelievable opportunity of what really is five or six core projects in Canada,” Wilton said.
On gold, Wilton said that fundamentals remain strong for the metal.
“I think fundamentals for the gold price are very strong. You’re looking at unprecedented amounts of fiscal and monetary stimulus, you have countries around the world that are probably too indebted to really raise interest rates to a meaningful degree, and unprecedented levels of borrowing, so I think that all sets up for what is going to be a long and sustained run in the gold price,” he said.
Additionally, inflation will return, and that is ultimately what’s going to move the gold price, he said.