First Mining Gold (TSX:FF) - De-Risking Multi-Million Ounce, Tier-One Canadian Gold Assets

Interview with Dan Wilton, CEO of First Mining Gold Corp.

Our previous interview: https://www.cruxinvestor.com/posts/fi...

Recording date: 15th March 2024

First Mining Gold (TSX:FF) offers investors a compelling opportunity to gain exposure to two of the largest undeveloped gold projects in Canada. The company's flagship Springpole project in Ontario hosts 4.6 million ounces of gold reserves and is approaching the final stages of a lengthy permitting process. Meanwhile, the Duparquet project in Quebec provides additional optionality and exploration upside with a 5.3 million ounce resource.

First Mining believes the company's projects are scarce, strategic assets that will be increasingly sought after by major gold producers looking to replenish depleted reserves. With several key de-risking milestones on the horizon, Wilton sees potential for a significant re-rating of the company's shares as the underlying asset value is recognized.

At Springpole, First Mining is nearing the end of a comprehensive environmental assessment (EA) process that has been underway since 2018. The company plans to submit its final EA report this summer, incorporating feedback from regulators and local indigenous communities. Approval of the EA, which First Mining anticipates by the end of 2025, would mark a major de-risking event for the project.

Concurrent with the EA process, First Mining is working to advance a definitive feasibility study on Springpole. The company has already completed over 200,000 meters of drilling on the deposit and believes it is well-positioned to deliver a robust study that will highlight the project's economic potential.

At Duparquet, First Mining sees potential for resource growth and a streamlined development path. The project benefits from its location in the Abitibi greenstone belt, a prolific mining district with established infrastructure and several operating mills. First Mining is currently drilling to expand the resource and is evaluating the potential for a smaller-scale, lower capex operation that could leverage existing processing capacity in the region.

Underpinning the investment thesis is a view that advanced-stage gold projects in attractive mining jurisdictions are becoming increasingly scarce. Wilton points to the unprecedented build-out of projects in Canada in recent years and the lack of new discoveries to replace them. As major producers face declining reserves and grades, he believes they will increasingly look to acquire or partner on high-quality development assets like Springpole and Duparquet.

For investors, First Mining offers a leveraged bet on two strategically located, multi-million ounce gold projects in a tier-one jurisdiction. With a market capitalization of just over $200 million, the company appears to be trading at a significant discount to the underlying value of its assets. As First Mining delivers on key de-risking catalysts in the coming months and years, there is potential for a re-rating of its shares and eventual M&A interest from larger gold producers.

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