Falco Advances Towards Development of the Horne 5 Project
For Immediate Release TSX.V - FPC
FALCO ADVANCES TOWARDS DEVELOPMENT OF THE HORNE 5 PROJECT
MONTREAL, October 28, 2024 – Falco Resources Ltd. (TSX.V:FPC) (“Falco” or
the “Corporation”) is pleased to provide a corporate update on its flagship Horne 5 Project located
in Rouyn-Noranda, Québec (the “Falco Horne 5 Project” or the “Project”). Following the completion
of the public hearing process with the Office of Public Hearings on the Environment (“BAPE”), Falco
continues to file documentation and provide responses to the BAPE, in view of the completion of its
report, which is due for submission to the Minister of the Environment, the Fight Against Climate
Change, Wildlife and Parks by December 26, 2024. Also, with the continued strength in gold and
copper, Falco will work towards updating the 2021 Feasibility Study, which utilized a gold price of
US$1,600 and a copper price of US$3.25/lb, with targeted completion for H1-2025.
Mr. Luc Lessard, President and Chief Executive Officer commented: “2024 has been extraordinary
for Falco, commencing early in the year with the execution of the Operating License and Indemnity
Agreement (“OLIA”) with Glencore, followed in short order by the admissibility of the Project’s
Environmental Impact Assessment which provided the path forward for the advancement of the
Project. The Corporation expects to obtain a ministerial decree authorizing the Project in H1-2025,
which would put Falco in the enviable position of having one of the few permitted large-scale
polymetallic gold projects ready to be developed in North America.”
Mr. Lessard added: “Since 2015, Falco has delineated a reserve of over 6.1M oz AuEq with an
additional 3.2M oz AuEq in resource (all categories), making it one of the largest gold resources in
Québec not controlled by a producer . The 2021 Feasibility Study, while benefiting f rom significant
economic returns, does not capture the rapidly changing gold, copper and zinc environment. The
planned update for H1-2025 will provide a much clearer picture as to the full potential of the Project.”
FALCO HORNE 5 PROJECT OVERVIEW
World-Class Deposit
• Massive sulphide polymetallic deposit (Au, Ag, Cu, Zn)
• High-volume underground mining favoring the best modern extraction technologies
• Annual production ( approximately 220,000 oz Au / 330,000 oz AuEq) over a 15-year mine
life
• 2021 Feasibility Study reflects robust financial parameters based on a gold price of
US$1,600/oz and is highly sensitive to the gold price:
o Each increase in the gold price by US$100/oz provides an approximate increase of
US$100 million in the after-tax net present value (“NPV”) of the Project (see sensitivity
tables included in the 2021 Feasibility Study)
• The 2021 Feasibility Study will be updated in H1-2025 to reflect the full potential of the Project
in this dynamic gold environment
• Poised to be a low-cost gold producer, with all-in sustaining costs (“AISC”) below US$600/oz
(net of by-product credits)
• Meaningful critical minerals exposure: Falco will be one of the larg est producers of copper
(247M lbs) and zinc (1,190M lbs) in Québec
• Significant high potential exploration upside with +67,000 ha owned around the Project
Real Infrastructure Advantage
• Significant infrastructure in Rouyn-Noranda, including roads, railways, hydro-electric power
distribution system and qualified mining labor expertise & supplier base
• Adjacent to the Project is a copper smelting facility owned by Glencore Canada Corporation
(“Glencore”)
• Opportunity to leverage existing infrastructure, including the former Quemont shaft
Strong Stakeholder Relationships
• Strong partners and positive stakeholder relations
• A silver stream agreement with Osisko Gold Royalties Ltd to help fund Project capex ( up
to C$180 million with C$35 million drawn)
• OLIA with Glencore sets out the terms upon which Falco can utilize a portion of Glencore’s
lands to develop and operate the Project
• Life of mine copper and zinc concentrate offtake agreements with Glencore
About Falco
Falco Resources Ltd. is one of the largest mineral claim holders in the Province of Québec, with
extensive land holdings in the Abitibi Greenstone Belt. Falco owns approximately 67,000 hectares
of land in the Noranda Mining Camp, which represents 67% of the entire camp and includes
13 former gold and base metal mine sites. Falco’s principal asset is the Falco Horne 5 Project located
under the former Horne mine that was operated by Noranda from 1927 to 1976 and produced
11.6 million ounces of gold and 2.5 billion pounds of copper. Osisko Development Corp is Falco’s
largest shareholder owning a 16.7% interest in the Corporation.
For further information, please contact:
Luc Lessard
President, Chief Executive Officer and Director
514-261-3336
Anthony Glavac
Chief Financial Officer
514-604-9310
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
press release.
Cautionary Statement on Forward-Looking Information
This news release contains forward -looking statements and forward- looking information (together,
“forward looking statements”) within the meaning of applicable securities laws in particular Falco’s
ability to obtain receipt of permits and approvals required to develop the Horne 5 Project and the
ability of Falco to efficiently develop and operate the Horne 5 Project based on the terms of the
Operating License and Indemnity Agreement concluded with Glencore Canada Corporation. Often,
but not always, forward- looking statements can be identified by words such as “plans”, “expects”,
“seeks”, “may”, “should”, “could”, “will”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”,
“anticipates”, “believes”, or variations including negative variations thereof of such words and
phrases that refer to certain actions, events or results that may, could, would, might or will occur or
be taken or achieved. These statements are made as of the date of this news release. Without
limiting the generality of the foregoing statements, forward-looking statements in this press release
include, without limitation, statements regarding the projections and assumptions of the 2021
Feasibility Study, including, without limitation: estimated annual production, NPV, AISC , resources
and reserves, mine life and potential production from the Horne 5 Property as envisioned by the
mine plan; economic assumptions and sensitivities and other operational and economic projections
with respect to the Horne 5 Project. Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance, prospects and
opportunities to differ materially from those expressed or implied by such forward- looking
statements. These risks and uncertainties include, but are not limited to, the risk factors set out in
Falco’s annual and/or quarterly management discussion and analysis and in other of its public
disclosure documents filed on SEDAR+ at www.sedarplus.ca, as well as all assumptions regarding
the foregoing. Although the Corporation believes the forward-looking statements in this news release
are reasonable, it can give no assurance that the expectations and assumptions in such statements
will prove to be correct. Consequently, the Corporation cautions inv estors that any forward-looking
statements by the Corporation are not guarantees of future results or performance and that actual
results may differ materially from those in forward-looking statements.