FIRST MINING GOLD CORP. TSX: FF
OTCQX: FFMGF
FRANKFURT: FMG
ANNUAL
INFORMATION FORM
For the year ended December 31, 2023
Date: March 28, 2024
2070 - 1188 WEST GEORGIA STREET, VANCOUVER, BRITISH COLUMBIA V6E 4A2
WWW.FIRSTMININGGOLD.COM | 1-844-306-8827
CONTENTS
Reporting currency and financial information 4
Caution about forward-looking information 4
Examples of forward-looking information in this AIF 5
National Instrument 43-101 definitions 9
Glossary of units 12
Glossary of elements 12
Glossary of abbreviations and acronyms 12
Cautionary note to US investors 14
About First Mining ............................................................................................................... 15
Vision and strategy 15
General overview of our business 16
Three-year history 19
Recent developments 29
Corporate organization 30
Our projects 32
Springpole ........................................................................................................................... 33
Technical report 33
Project description, location and access 33
History 36
Geological setting, mineralization and deposit types 38
Exploration and Drilling 39
Sampling, analysis and data verification 41
Mineral processing and metallurgical testing 44
Mineral resource estimates 46
Mineral reserve estimates 47
Mining methods 48
Processing and recovery operations 49
Infrastructure, permitting and compliance activities 50
Capital and operating costs 52
Exploration, development and production 55
Recent developments 56
Duparquet ........................................................................................................................... 63
Technical report 63
Project description, location and access 63
History 64
Geological setting, mineralization and deposit types 65
Exploration 67
Drilling 67
Sampling, analysis and security 68
Data verification 72
Mineral processing and metallurgical testing 73
Mineral resource estimates 77
Mining methods 81
Recovery methods 82
Infrastructure 84
Environmental Studies, Permitting and Social/ Community Impact 85
Capital and Operating Costs 87
Cameron ............................................................................................................................. 90
Technical report
90
Project description, location and access 90
History 91
Geological setting, mineralization and deposit type 92
Exploration 92
Drilling 92
Sampling, analysis and data verification 93
Mineral processing and metallurgical testing 97
Mineral resource estimates 98
Recent developments 99
Non-material properties ..................................................................................................... 101
Risks that can affect our business ....................................................................................... 103
Types of risk 104
Exploration, development, production and operational risks 104
Financial risks 109
Political risks 112
Regulatory risks 114
Environmental risks 115
Industry risks 116
Other risks 117
Investor information .......................................................................................................... 123
Share capital 123
Common shares 123
Preferred shares 124
Security-based compensation and convertible securities 124
Material contracts 125
Market for our securities 130
Prior sales 130
Trading activity 132
Our team 134
Audit Committee information 140
Interests of experts 142
Additional information 144
Appendix A - Audit Committee Charter .............................................................................. 145
Important information about this document | |
Throughout this document, the | |
terms we, us, our, the Company and | |
This annual information form ("AIF") provides important information | First Mining mean First Mining Gold |
about the Company. It describes, among other things, our history, | Corp. and its subsidiaries, in the |
our markets, our exploration and development projects, our Mineral | context. |
Resources and Mineral Reserves, sustainability, our regulatory environment, the risks we face in our business and the market for our shares.
Reporting currency and financial information
The reporting currency of the Company is Canadian dollars. Unless we have specified otherwise, all dollar amounts ("$") referred to in this AIF are in Canadian dollars. Any references to "US$" mean United States (US) dollars. On December 29, 2023, the exchange rate of US dollars into Canadian dollars, being the average exchange rate published by the Bank of Canada, was US$1.00 equals $1.32.
Non-IFRS Financial Measures
In this AIF we refer to future estimates of financial measures that are not IFRS financial measures ("Non-IFRS Financial Measures"). These financial measures are widely used in the mining industry as a benchmark for performance but do not have standardized meanings prescribed by IFRS and may differ from methods used by other companies with similar descriptions. Non-IFRS Financial Measures should not be considered in isolation or in substitute for measures of performance prepared in accordance with IFRS.
These Non-IFRS Financial Measures are included in this AIF because these statistics are used as key performance measures that management uses to monitor and assess future performance of the Springpole Project and to plan and assess the overall effectiveness and efficiency of mining operations. Non-IFRS Financial Measures included in this AIF are as follows:
● Total Cash Costs and Total Cash Costs per Gold Ounce - Total Cash Costs are reflective of the cost of production. Total Cash Costs reported in the AIF in regards to the Springpole Project include mining costs, processing, water and waste management costs, on-site general and administrative costs, treatment and refining costs, royalties and silver stream credits. Total Cash Costs per Ounce is calculated as Total Cash Costs divided by total LOM payable gold ounces.
● All-in Sustaining Costs ("AISC") and AISC per Gold Ounce - AISC is reflective of all of the expenditures that are required to produce an ounce of gold from operations. AISC reported in the AIF is in regards to the Springpole Project includes Total Cash Costs, sustaining capital and closure costs. AISC per Ounce is calculated as AISC divided by total LOM payable gold ounces.
The AISC and Total Cash Costs are future estimates only and, as the Company has not generated production from the Springpole Project to date, no comparable historical figures are available.
Caution about forward-looking information
This AIF includes statements and information about our expectations for the future. When we discuss our strategy, business prospects and opportunities, plans and future financial and operating performance, or other things that have not yet taken place, we are making statements considered to be forward-looking information or forward-looking statements under applicable securities laws. We refer to them in this AIFas forward-looking information.
Key things to understand about the forward-looking information in this AIF:
● It typically includes words and phrases about the future, such as expect, believe, estimate, anticipate, plan, intend, predict, goal, target, forecast, project, scheduled, potential, strategy and proposed (see examples listed below).
● It is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in the light of management's experience and perception of historical trends, current conditions and expected future developments, including those we have listed below, which may prove to be incorrect.
● Actual results and events may be significantly different from what we currently expect, because of the risks associated with our business. We list a number of these material risks on the next page 103. We recommend you also review other parts of this AIF, including the section "Risks that can affect our business" starting on page, which discuss other material risks that could cause our actual results to differ from current expectations.
Forward-looking information is designed to help you understand management's current views of our near-term and longer-term prospects. It may not be appropriate for other purposes. We will not update or revise this forward-looking information unless we are required to do so by applicable securities laws.
Examples of forward-looking information in this AIF
● statements regarding future acquisitions of mineral properties
● statements relating to our vision and strategy
● statements relating to our plans or intentions to pay, or not pay, a dividend to our shareholders
● our intention to de-risk our material assets through exploration, drilling, calculating resource estimates, conducting economic studies and other activities
● our intention to utilize our management team's expertise to successfully permit and construct producing mines at our material assets
● statements relating to the criteria we will use when assessing potential acquisitions
● our belief that we will continue to be able to locate and retain professionals with the necessary specialized skills and knowledge
● statements regarding our intention and ability to select, acquire and bring to production suitable properties or prospects for mineral exploration and development
● our ability to raise the capital necessary to fund our operations and the potential development of our properties
● our ability to obtain the resources to conduct exploration and development activities on our properties
● our belief that the policies and procedures implemented by our executive management team provide a safe working environment for all of our employees, consultants, contractors and stakeholders
● forecasts relating to market developments and trends in global supply and demand for gold
● our ability to work with the various Indigenous communities in relation to the development of our
projects
● our intention to continue to make expenditures to ensure compliance with applicable laws and regulations
● our intentions and expectations regarding exploration, drilling or operations any of our mineral properties or those operated by our partners
● statements regarding the ultimate recovery of gold and silver from our properties, including the Springpole Project and the Duparquet Project
● statements regarding regulatory approval and permitting, including but not limited to the Environmental Assessment process currently underway and our plans to complete a Feasibility Study on the Springpole Project
● statements regarding our plans to address the legacy environmental issues at the Duparquet Project
● forecasts relating to mining, development and other activities at our operations
● statements regarding projected capital and operating costs, net present value, AISC, Total Cash Costs and internal rate of return and cash flows of the Springpole Project and the Duparquet Project
● future royalty and tax payments and rates
● future work on our non-material properties
● our Mineral Reserve and Mineral Resource estimates
● statements regarding our intentions with respect to our holdings of securities of other issuers
● statements regarding future consideration payable to First Mining pursuant to the Silver Stream Agreement and the Treasury Metals SPA
Material risks
● exploration, development and production risks
● operational hazards
● global financial conditions including supply chain issues, increased inflation, interest rates, economic sanctions and the impact of armed hostilities, such as those ongoing in the Ukraine and the Middle East
● commodity price fluctuations
● availability of capital and financing on acceptable terms
● we have no history of commercially producing metals from our mineral exploration properties
● our Mineral Reserve and Mineral Resource estimates may not be reliable,or we may encounter unexpected or challenging geological, hydrological or mining conditions
● our exploration plans may be delayed or may not be successful
● we may not be able to obtain or maintain necessary permits or approvals from government authorities
● we may be affected by environmental, safety and regulatory risks, including increased regulatory burdens or delays
● there may be defects in, or challenges to, title to our properties
● our current or future mineral tenure or operations may be challenged by one or more groups holding Indigenous rights
● some of our mineral projects have legacy environmental issues as a result of past operations which we may need to remediate
● we may lose our interest in certain projects if we fail to make certain required payments or minimum expenditures
● we may be unable to enforce our legal rights under our existing agreements, permits or licences, or may be subject to litigation or arbitration that has an adverse outcome
● we may be adversely affected by currency fluctuations, volatility in securities markets and volatility in mineral prices and interest rates
● accidents or equipment breakdowns may occur
● the cyclical nature of the mining industry
● there may be changes to government regulations or policies, including tax and trade laws and policies
● we may be adversely affected by changes in foreign currency exchange rates, interest rates or tax rates
● our estimates of production, purchases, costs, decommissioning or reclamation expenses, or our tax expense estimates, may prove to be inaccurate
Material assumptions
● we may be impacted by natural phenomena, including inclement weather, fire, flood and earthquakes and the impacts of climate change
● our exploration projects may be disrupted due to problems with our facilities, the unavailability of equipment, equipment failure, labour shortages, ground movements, transportation disruptions or accidents or other exploration and development risk
● uncertainties and substantial expenditures related to determining whether Mineral Resources or Mineral Reserves exist on a property
● we may not be able to attract and retain suitable specialized personnel
● the impact of increased costs on the calculation of Mineral Reserves and on the economic viability of projects
● future sales by existing shareholders could reduce the market price of our shares
● climate change regulations may become more onerous over time as governments implement policies to further reduce carbon emissions
● we are exposed to risks associated with our equity holdings in other public companies
● the assumptions regarding market conditions upon which we have based our capital expenditure expectations
● the availability of additional capital and financing on acceptable terms, or at all
● our Mineral Reserve and Mineral Resource estimates and the assumptions upon which they are based are reliable
● the success of our exploration plans
● our expectations regarding spot prices and realized prices for gold and other precious metals
● market developments and trends in global supply and demand for gold meeting expectations
● our expectations regarding tax rates and payments, foreign currency exchange rates and interest rates
● our reclamation expenses
● the geological conditions at our properties
● the underlying title to each of our properties is valid and will continue to be so
● our ability to satisfy payment and minimum expenditure obligations in respect of certain of our properties
● our ability to comply with current and future environmental, safety and other regulatory requirements, and to obtain and maintain required regulatory approvals without undue delay
● our operations are not significantly disrupted as a result of natural disasters, governmental or political actions, public health crises, litigation or arbitration proceedings, the unavailability of reagents, equipment, operating parts and supplies critical to our activities, equipment failure, labour shortages, ground movements, transportation disruptions or accidents or other exploration and development risks
● our ability to maintain the support of stakeholders and rights holders necessary to develop our mineral projects including, without limitation, holders of Indigenous rights
● the accuracy of geological, mining and metallurgical estimates
● maintaining good relationships with the communities in which we operate
National Instrument 43-101 definitions
Canadian reporting requirements for disclosure of mineral properties are governed by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"). The definitions in NI 43-101 are adopted from those given by the Canadian Institute of Mining Metallurgy and Petroleum ("CIM").
The term "Qualified Person" refers to an individual who is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development, production activities and project
Qualified Person
assessment, or any combination thereof, including experience relevant to the subject matter of the project or report and is a member in good standing of a self-regulating organization.
Mineral Resource
The term "Mineral Resource" refers to a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal and industrial minerals in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
Inferred Mineral Resource
The term "Inferred Mineral Resource" refers to that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and limited sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity. The estimate is based on limited information and sampling gathered through appropriate sampling techniques from locations such as outcrops, trenches, pits, workings and drill holes.
Indicated Mineral ResourceMeasured Mineral Resource
The term "Indicated Mineral Resource" refers to that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with sufficient confidence to allow the appropriate application of modifying factors (including, but not limited to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environment, social and governmental factors) in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to reasonably assume geological and grade or quality continuity between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a "Measured Mineral Resource" and may only be converted to a "Probable Mineral Reserve".
The term "Measured Mineral Resource" refers to that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with sufficient confidence to allow the appropriate application of modifying factors (including, but not limited to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environment, social and governmental factors) in sufficient detail to support detailed mine planning and final evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm geological and grade or quality continuity between points of observation. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a "Proven Mineral Reserve" or to a Probable Mineral Reserve.
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Disclaimer
First Mining Gold Corp. published this content on 27 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 March 2024 04:25:01 UTC.
