First Mining Gold (TSX: FF) has cleared one of the last major regulatory obstacles between its Springpole deposit and a construction decision, winning federal environmental assessment approval for the northwestern Ontario gold project.
Environment Minister Julie Dabrusin issued a Decision Statement dated June 30 confirming the project may proceed, capping a federal review that began back in 2018. The assessment drew input from Indigenous communities, the public and several departments, among them Environment and Climate Change Canada, Fisheries and Oceans Canada, Natural Resources Canada and Transport Canada.
The statement comes with conditions built around the environmental commitments First Mining put forward during the process, covering engineering design, aquatic and terrestrial protections, monitoring, adaptive management and continued consultation. The company said it will keep advancing post-assessment engineering and optimization work as it moves the project toward construction readiness and works to satisfy those conditions.
Sponsored · Cambria Gold Mines
Chief executive Dan Wilton framed the approval as a turning point for the company, area Indigenous communities and municipalities, and the surrounding region, saying the federal sign-off confirms Springpole will be “the biggest economic driver of Northwest Ontario in a generation.”
WATCH: Why This Gold Story Still Has Room to Run | Dan Wilton – First Mining Gold
Springpole ranks among Canada’s largest undeveloped gold resources. An updated pre-feasibility study released last November laid out a 30,000 tonne per day open pit operation over a 9.4-year mine life, with average annual gold production of 330,000 ounces across the first five years and all-in sustaining costs of US$877 an ounce over that stretch.
That study put the project’s after-tax net present value at US$2.1 billion and initial capital at roughly US$1.1 billion, based on a gold price of US$3,100 an ounce. The project meanwhile is expected to generate an internal rate of return of 40.8%, with a payback period of 1.8 years.
The deposit holds indicated resources of 4.8 million ounces of gold and 28 million ounces of silver. First Mining has estimated Springpole would contribute more than $7 billion to gross domestic product over its life, alongside hundreds of jobs and contracting work for regional and Indigenous businesses.
First Mining last traded at $0.62 on the TSX.
