News Summary
The most recent news (December 23, 2025) confirms the filing of the formal NI 43-101 Technical Report for the Pre-Feasibility Study (2025 PFS) for the Springpole Gold Project. This follows the summary announcement on November 18, 2025. Key metrics include an after-tax NPV (5%) of US$2.1 billion and an IRR of 41% at a base case gold price of US$3,100/oz. The study outlines a 30,000 tpd open-pit operation producing an average of 330,000 oz of gold annually for the first five years at an AISC of US$877/oz. Initial capital costs are estimated at US$1.1 billion.
Material Impact
The filing is material as it provides the technical and legal foundation for the robust economics previously signaled.
– Valuation Disconnect: The project’s after-tax NPV (US$2.1B / ~C$2.9B) is more than 4x the company’s current market capitalization. Even at lower gold prices (US$2,000/oz), the project likely remains viable, though current leverage to the gold price is extreme.
– Operational Derisking: The inclusion of an airstrip and the removal of the filter plant for NAG tailings from the flowsheet suggest a more streamlined and realistic operational plan compared to the 2021 PFS.
– First Majestic Confidence: The December 16 news of First Majestic Silver Corp. exercising warrants for $6.4M CAD signals strong support from their largest strategic partner and stream-holder, validating the project’s progress.
– Asset Monetization: The sale of the Cameron Project (C$27M total value) and the final 20% of Hope Brook (C$3M + shares) demonstrates management’s ability to monetize non-core assets to fund flagship development without immediately returning to the equity markets.
Catalysts
– Environmental Assessment (EA) Progress: The Final EIS/EA was submitted in November 2024. Monitoring the federal and provincial review timelines is critical, as permitting remains the single largest hurdle.
– Feasibility Study (FS) Commencement: Management has signaled the transition toward a full Feasibility Study. Formal commencement and contractor selection will be key.
– Indigenous Partnerships: Following the Long-Term Relationship Agreement with Mishkeegogamang First Nation, similar agreements with other impacted communities (Cat Lake, Lac Seul) are necessary to derisk the “Social License to Operate.”
Materiality Conclusion
The news is Material – Positive. While the economics were known in November, the formal filing and the subsequent $6.4M warrant exercise by First Majestic provide the “stamp of approval” required for institutional consideration. However, the capital intensity (US$1.1B) remains a daunting hurdle for a company of this size.
