First Mining Gold has reworked the economics and the design of what its proposed Springpole open-pit gold mine and silver mine project will look like in the Red Lake area of northwestern Ontario.
The Vancouver mine developer decided to redo its prefeasibility study (PFS) from four years ago and paint a new picture of its advanced stage project that’s close to finishing out the environmental assessment (EA) project.
Located 110 kilometres northeast of Red Lake, Springpole has the size and scale to be one of Canada’s largest open-pit gold mines.
With an estimated 9.4-year mine life, Springpole is tabbed to produce 330,000 ounces annually for the first five years before levelling off at 281,000 ounces for its remaining operational life. Total gold production is expected to be 2.6 million ounces.
Springpole contains an indicated resource of 4.8 million ounces at 0.78 grams per tonne and 28 million ounces of silver at 4.6 grams per tonne. The company insists that resource is likely to grow as there are satellite deposits across its 70,000-hectare property.
First Mining didn’t provide any specific dates in a news release, on its website or in its latest investor presentation on timelines when mine construction and gold production will begin, but said Springpole can be one of the larger gold projects to enter production within the next five years.
In a statement, First Mining CEO Dan Wilton said Springpole has the potential to be “one of the largest economic drivers in northwestern Ontario for a generation to come,” providing hundreds of jobs, spinoff contracting opportunities and infrastructure improvements in the region, particularly for Indigenous businesses and communities.
A big reason for a do-over from the original PFS published in 2021 was that the average gold price four years ago was bouncing around US $1,800 an ounce. Today, it’s more than doubled, with the gold price cresting US$4,000 an ounce in October.
Among the changes with the new study are the addition of an air strip, capable of handling Dash-8 aircraft, next to an 18-kilometre-long mine access road.
The price tag to build Springpole comes in at US$1.1 billion. The cost to operate it over its mine life is estimated at US$323 million. The funds set aside for closure costs are US$40 million.
First Mining has previously indicated it wouldn’t mind if a development partner teamed up with them to help develop Springpole.
Springpole has gone through an extensive environmental assessment (EA) process, beginning back in 2018.
A big reason is that the deposit sits under the bay of Springpole Lake. Getting at the gold means draining the bay and constructing dikes to create the pit.
That EA process is now coming to an end. The company expects to receive its EA approval from both the feds and provincial government some time in the first half of 2026. First Mining Gold maintains Springpole can be built with minimal impact to the environment.
Consultation with nearby Indigenous communities is ongoing, the company said.
First Mining has signed a Long Term Relationship Agreement (LRTA) with Mishkeegogamang First Nation, a community situated just south of Pickle Lake. The pact delivers economic opportunities and financial benefits during the mine’s construction and operation, while ensuring environmental safeguards are in place.
Besides Springpole, First Mining is simultaneously working to advance a second mine project, known as Duparquet, a 6-million-ounce property on the Quebec side of the Abitibi region.
First Mining has a number of smaller projects, where it’s brought in partners to develop those projects, creating future royalty opportunities.
One of those prospects is its 53,000-hectare Cameron gold project, 85 kilometres southeast of Kenora. That 464,000-ounce deposit is being sold to Oronova Energy, which will be renamed Seva Mining.
The $27-million transaction, expected to close in early 2026, is a cash-and-share deal which will make First Mining Gold the largest shareholder in Seva in a partnership with the Fiore Group, which includes mining entrepreneurs Frank Giustra and Gordon Keep.