Gold development company First Mining has announced the results of a preliminary economic assessment (PEA) for its Duparquet mine, in Quebec, putting an initial capital cost of C$706-million on the development.

Sustaining and underground development costs are estimated at a further C$738-million, for total capital of C$1.44-billion.

The PEA calculated an after-tax net present value, using a 5% discount, of C$588-million and an internal rate of return of 18%.

Over an 11-year mine life, Duparquet, which is located north of its namesake town near Rouyn-Noranda, will produce 2.5-million ounces, at an all-in sustaining cost of $976/oz.

"The +200 000 oz per year production profile, attractive capital and operating cost profile and strategic location of the deposit in the heart of the Abitibi gold belt all contribute to the recognition of Duparquet as one of the most meaningful development projects in Canada,” said CEO Dan Wilton.

Duparquet currently hosts 2.7-million ounces of gold in the inferred mineral resource category.

The PEA evaluates recovery of gold from a 15 000 t/d openpit and underground mining operation, with a process plant producing concentrate for sale.

Wilton added that the Duparquet project represented a unique opportunity to address the environmental legacy issues from the historic mining operations.

Besides Duparquet, First Mining owns the Springpole project, in Ontario.