First Mining Gold Corp (FFMGF)

[TommyJ7651]

This is actually very well laid out and is precisely how I would also like to see the story develop. I'm not really sure how much cash flow they would be able to squeeze out from Duparquet if they got that operation going all by themselves which is very possible considering the low start up costs if they don't need their own mill. My understanding is that they would need to keep the starter pit operation below 2000 tonnes of ore per day. The tailings contain about 0.9g of gold per tonne so we can maybe have a rough estimate of around 40-45 ounces of gold per day produced if they process around 1500 tonnes of tailings per day. This would indicate revenues of maybe 20-30 million USD per year (at least) with current gold prices. I have no idea how much the costs would be for this kind of operation, I would assume maybe a gross profit of maybe 10 million per year or so at least? This is completely speculation on my part, I really have no idea but we can certainly conclude that at current gold prices this starter pit operation could provide very nice near term cash flow for the company. First Mining could then further develop Springpole with this money as needed while also growing the Duparquet operation every year until they get the permits in place there for a bigger operation.

If they could then partner up with First Majestic to develop Springpole as a JV with all of the needed permits in place then I can easily envision this company being valued in the 1-2 billion range (CAD). This would really be the dream outcome. First Majestic already owns a silver stream interest in Springpole so it could be very possible that they would want to partner with FFMG here.

Keep also in mind that the company still has JV interests in both Pickle Crow and Hope Brook. Pickle Crow is by no means a small deposit, it's almost 3 million ounces inferred so there is definitely economic value here as well if this project gets developed. The new mining legislation in Ontario (Build More Mines Act) is exactly meant for deposits like this to get developed faster.

I also sleep very well at night even with all of the negative sentiment in the sector currently. I think Duparquet really is the ace in the sleeve here and they really need to focus on that operation to get it started asap either by themselves or as a JV.