First Mining Gold Corp. (TSX: FF) has unveiled a new socio-economic analysis for its Springpole Gold Project in northwestern Ontario, revealing the potential for a massive economic windfall for the region and the country. The analysis, updated by WSP Canada Inc. following the company’s recent pre-feasibility study, projects that the mine will contribute $15 billion to Canada’s gross domestic product and generate over $7 billion in tax revenue for federal and provincial governments.
These figures underscore the scale of Springpole, which CEO Dan Wilton believes is currently undervalued by the market. In a candid interview with Steve Hyland on The Deep Dive, Wilton discussed the disconnect between the project’s economics and its share price.
“You know, the tighter and tighter that you’re coiling the spring on the share price…” Wilton remarked, suggesting a potential rebound as the project advances through its final permitting stages. He noted that while Springpole trades at a fraction of its net present value, similar projects often trade at much higher multiples. “If you want to own a project built in Canada in the next five years, it’s a very short list… it’s Springpole,” emphasizing the scarcity of large-scale, advanced gold projects in tier-one jurisdictions.
WATCH: Why Canada Has So Few Projects That Can Be Built Before 2030 | Dan Wilton – First Mining
The updated socio-economic data paints a picture of long-term stability for Northwestern Ontario. The project is expected to support 3,340 jobs annually during construction and 5,910 jobs per year during its operations, totaling over 67,000 person-years of employment. This comes at a critical time, as First Mining pointed out in the news release that “other sectors and industries operating in the region have been experiencing a decline in activity.”
During the interview, Wilton also addressed the regulatory landscape, specifically the federal Major Projects Office’s focus on critical minerals. While gold isn’t on that specific list, Wilton remains optimistic about the government’s understanding of the sector’s importance. “The major projects office with respect to mining has a real focus on critical minerals… just because gold isn’t a critical mineral don’t think it’s not critical to the province,” he explained. “If there was no gold mining you’d almost have no mining industry in Canada.”
He further elaborated on the permitting process, identifying the true bottleneck for development. “The rate determining step on advancing projects in Canada is not generally the bureaucratic review… The thing that takes the time is in… building relationships with the indigenous communities,” Wilton said. He stressed that providing capacity to these communities early in the process is essential for shortening timelines.
With the final environmental impact statement/environmental assessment submitted in November 2024, First Mining is nearing a pivotal moment. The company expects a decision on the EA in the first half of 2026. Wilton is confident in the project’s quality, stating, “This will be a easily top 10, potentially top five gold mine in Canada.”
First Mining last traded at $0.51 on the TSX.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
