First Mining Gold (TSX: FF | OTCCQX: FFMGF) has announced positive results for the preliminary economic assessment (PEA) completed on its wholly-owned Duparquet gold project in the Abitibi region of Quebec, Canada.
The PEA results support development of a 15,000tpd open pit and underground operation over an 11-year mine life. It includes the Beattie, Donchester, Central Duparquet, and Cumico claim blocks, but does not include the Pitt and Duquesne deposits.
The study also gives the project a pre-tax net present value (NPV) with a 5% discount of C$1.07B and a pre-tax internal rate of return (IRR) of 24.9%. Looking at the after-tax numbers, Duparquet has an NPV with a 5% discount of C$588M and IRR of 18.0%.
“This PEA demonstrates the robust economic potential of the Duparquet Gold Project,” commented Dan Wilton, CEO of First Mining.
“The +200Kozpa production profile, attractive capital and operating cost profile, and strategic location of the deposit in the heart of the Abitibi gold belt all contribute to the recognition of Duparquet as one of the most meaningful development projects in Canada.”
The open pit resource estimate covers 163,700t at 1.37g/t (7,200oz Au), 59.4Mt indicated at 1.52g/t (2.9Moz gold), and 34.6Mt indicated at 1.16g/t (1.2Moz Au). The average annual gold production will be 233Kozpa with an all-in sustaining cost of US$976/oz. Total production is projected to be 2.5Moz Au.
First Mining has put initial capital costs at C$706M for the open pit. Sustaining costs and underground development will be C$738M. The after-tax payback period will be 4.8 years (3.8 years pre-tax).
Conventional open pit mining will begin in year one at a rate of 10,400tpd with underground development beginning at the same time. Underground long hole mining is expected to begin in year two at a rate of 3,500tpd. The peak mining rate for both mines will be 12,670tpd by year eight.
The mill is designed to treat 15,000tpd of ore plus reprocessing existing tailings. Flotation tailings will be thickened to produce for storage onsite.
For further information, please visit: www.firstmininggold.com
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