First Mining Gold (TSX: FF; US-OTC: FFMGF) says positive interim metallurgical test results for its Springpole gold project, located 110 km northeast of Red Lake, Ont., could increase the project's gold recovery 13.2% to 90.6% and silver recovery 11.9% to 95.1%.
M3 Engineering and Technology and ALS Metallurgy completed the flotation testwork on material from Springpole. They then performed separate cyanide leaching on both concentrate and flotation tails.
The companies discovered that leaching flotation tails from Springpole achieved consistently high recoveries, "even at relatively coarse grind sizes." The company achieved at least 88% recoveries when leaching float tails across all grind sizes.
The company intends to incorporate its metallurgical test results into an updated preliminary economic assessment (PEA) for Springpole, and eventually a prefeasibility study. A 2017 PEA the company tabled for Springpole assigned the project a US$792 million post-tax net present value at a 5% discount rate and a 26.2% post-tax internal rate of return. It used 80% gold recoveries and 85% silver recoveries.
According to that study, the project would produce 296,500 oz. gold and 1.63 million oz. silver per year over a 12-year mine life. The project would cost an initial US$586 million and average US$806 per oz. gold equivalent all-in cash costs.
It contains 139.1 million indicated tonnes grading 1.04 grams gold and 5.4 grams silver for 4.67 million oz. gold and 24.19 million oz. silver. The project also contains 11.4 million inferred tonnes at 0.63 gram gold and 3.1 grams silver for 230,000 oz. gold and 1.12 million oz. silver.
Shares of First Mining Gold are currently trading at 37 ? with a 52-week range of 21 ? to 55 ?. The company has a $206 million market capitalization. It has several other projects across North America and Mexico.