Falco Resources (TSXV: FPC) is a junior resource exploration company and is one of the largest claim holders in the Abitibi region of Quebec.

Falco's genesis was from the acquisition of one of Canada's most established VMS mining camps, the Rouyn Noranda Mining Camp, including the Horne Mine Complex area (birth place of Noranda in the 1920's) and 13 other former producers. Falco Resources has 100% ownership of 74,000 hectares of property, which represents 70% of the entire camp.

Falco Resources employed a highly technical digitization and data mining strategy to move over 80 years of historical data into the 21st century. The bundling of this proprietary data with modern day technology, allowed Falco to 'rediscover' the Horne 5 deposit, culminating in a maiden NI 43-101 inferred mineral resource estimate.

On October 16, 2017, Falco announced the results of a positive feasibility study prepared in accordance with National Instrument 43-101 for the Company's Horne 5 Gold Project located in Rouyn-Noranda, Québec, Canada.

FEASIBILITY STUDY HIGHLIGHTS

BASE CASE IS STATED USING GOLD PRICE OF $1,300 PER OUNCE, SILVER PRICE OF $19.50 PER OUNCE, COPPER PRICE OF $3.00 PER POUND, ZINC PRICE OF $1.10 PER POUND AND AN EXCHANGE RATE OF C$1.00 equal to US$0.78

  • NPV of $1,012 million at a 5% discount rate and an IRR of 18.9% before taxes and mining duties;
  • NPV of $602 million at a 5% discount rate and an IRR of 15.3% after taxes and mining duties;
  • Mine life of 15 years, with peak-year payable production of 268,000 ounces, average life-of-mine ("LOM") annual payable production of
  • 219,000 ounces of gold and 235,000 ounces at steady-state;
  • Net payable gold recovery of 88.1%;
  • 3,741,000 ounces of contained gold;
  • 3,294,000 ounces of payable gold LOM;
  • 1,007 million pounds of payable zinc LOM;
  • 229 million pounds of payable copper LOM;
  • 26.3 million ounces of payable silver LOM;
  • 80,897,000 tonnes total ore material mined;
  • 2.37 g/t AuEq average diluted gold equivalent grade;
  • 1.44 g/t Au average diluted gold grade;
  • All-in Sustaining Costs* of $399/oz net of by-product credits, including royalties, over LOM;
  • All-in cost, CAPEX plus OPEX, is estimated at $643 per payable ounce;
  • C$41.00 per tonne milled total unit operating cost;
  • Pre-Production Construction costs of $801.7 million, including a $58.5 million contingency and excluding $26.7 million of capital outlays to August 31st, 2017;
  • Payback period of 5.2 years pre-tax and 5.6 years post-tax;
  • Gross revenue of $6.6 billion and operating cash flow of $2.7 billion LOM;
  • Process plant commissioning in first half of 2021;
  • Full mine production in first half of 2022.

See the press release dated October 16, 2017

Falco Resources Ltd.

1100, avenue des Canadiens-de-Montréal, Suite 300
Montréal, QC H3B 2S2

Tel: +1.514.905.3162

info@falcores.com

+1.514.940.0670
+1.514.940.0669
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