Falco Resources Announces Updated Feasibility Study for Horne 5 Project, Delivering After-Tax NPV5% C$3.35 Billion, IRR of 28.2% and Cash Flow of C$6.4 Billion at Base Case Gold Price of US$3,600/Oz (All dollar amounts are expressed in Canadian Dollars ($) unless otherwise stated)
For Immediate Release TSX.V - FPC
Falco Resources Announces Updated Feasibility Study for Horne 5 Project, Delivering After-Tax NPV5% C$3.35 Billion,
IRR of 28.2% and Cash Flow of C$6.4 Billion at Base Case Gold Price of US$3,600/Oz
(All dollar amounts are expressed in Canadian Dollars ($) unless otherwise stated)
Montréal, Québec, June 17, 2026 – Falco Resources Ltd. (FPC: TSX-V) (“Falco” or the “Corporation”) is pleased to announce
the results of an updated feasibility study (the “2026 Feasibility Study” or the “2026 FS” ), prepared in accordance with National
Instrument 43-101 Respecting Standards of Disclosure for Mineral Projects (“NI 43 -101”) for the Corporation’s 100%-owned
Horne 5 Gold Project (the “Horne 5 Project” or the “Project”) located in Rouyn-Noranda, Québec, Canada.
HIGHLIGHTS
• Robust returns with base case after-tax NPV5% of $3.35 billion (increase of 244% from 2021 FS), unlevered after-tax IRR
of 28.2% and after-tax payback of 3.3 years;
• Using spot case, after-tax NPV5% improves to $5.1 billion (53% increase), after-tax IRR of 3 7.2% and payback of 2. 6
years;
• Generates projected life-of-mine after-tax cash flow of $6.4 billion and average annual after-tax cash flow of $542.5 million
• Average annual gold production of 220,300 payable ounces annually over the 15-year LOM;
• Low average all -in sustaining costs (“ AISC”) of US$782/oz and the Project is poised to be a 1 st quartile low-cost gold
producer worldwide;
• $61.74 per tonne processed operating cost;
• Forward capital and pre-production costs of $1.75 billion, including 10.9% contingency;
• LOM of 15 years with the potential for further underground development;
• Contributes more than $4.4 billion in taxes and mining duties over its LOM;
• Strong support for local employment with up to 900 direct jobs created during peak construction and 500 permanent jobs
during operations;
• Supports Québec’s energy transition and economic decarbonization through significant value- added critical and strategic
minerals; and
• Québec's environmental review process continues to advance, with written confirmation from the Minist ry of the
environment that their analysis is progressing well and that solutions have been identified for key environmental issues .
Base case economics are stated using a gold price of US$3,600/oz, silver price of US$50.00/oz, copper price of US$4.80/lb,
zinc price of US $1.35/lb and an exchange ra te of $1.34 equal to US$1.00. Spot case economics (as of May 31, 2026) are
stated using a gold price of US$4,500/oz, silver price of US$75.00/oz, copper price of US$6.40/lb, z inc price of US$1.60/lb
and an exchange rate of $1.38 equal to US$1.00.
Luc Lessard, President and Chief Executive Officer, commented: “The 2026 Feasibility Study confirms Horne 5 as a large-
scale, long-life gold project capable of generating substantial cash flow and strong returns for shareholders. With an after -tax
NPV5% of $3.35 billion, projected after-tax cash flow of $6.4 billion and average annual gold production of 220,300 ounces, Horne
5 ranks among the most significant undeveloped gold projects in Canada. Significant copper and zinc by-product credits, combined
with highly automated, modern operations, contribute to a projected low all-in sustaining cost (AISC) of US$782 per ounce. Located
in the world- class Rouyn-Noranda mining district, the P roject benefits from well -established infrastructure and a skilled mining
workforce.”
Falco will host a webinar presentation by management on the results of the 2026 Feasibility Study on Wednesday, June 17, 2026,
at 11:00 a.m. ET, followed by a question & answer session. Details are available at the end of this news release.
2026 FEASIBILITY STUDY CONFIRMS SIGNIFICANT VALUE OF THE HORNE 5 PROJECT
The 2026 FS reaffirms that the Horne 5 Project represents a robust, high margin, 15-year underground mining project with
compelling economic returns. At a gold price of US$3,600/oz, the 2026 FS shows that the Horne 5 Project would generate an after-
tax NPV5%, of $3.35 billion and an after-tax IRR of 28.2%. Under this scenario, the mine is positioned to emerge as a significant
gold producer in Québec , delivering average annual payable gold production of 220,300 payable ounces over the LOM, at a
competitive AISC of US$782/oz, net of by-product credits from copper, zinc and silver production.
TABLE 1: COMPARISON OF 2021 FS AND 2026 FS ECONOMIC RESULTS
Category Unit 2021 FS(1) 2026 FS
Inventory tonnes 80,896,876 80,896,876
Contained Gold oz 3,740,871 3,740,871
Payable Gold LOM oz 3,304,453 3,304,455
Payable Silver LOM oz 27,289,020 27,289,040
Produced Zinc LOM Million lbs 1,189.8 1,189.8
Produced Copper LOM Million lbs 247.3 247.3
Average Diluted Gold Equivalent Grade(2) g/t Au Eq 2.24 1.99
Average Diluted Gold Grade g/t 1.44 1.44
Cash Cost US$/oz Au 406 528
AISC* US$/oz Au 586 782
Operating Cost $/tonne processed 43.1 61.7
Total LOM NSR Revenue (net of Silver Stream) $M 8,721.8 19,002.7
Total LOM Pre-Tax Cash Flow $M 3,319.2 10,825.4
Average Annual Pre-Tax Cash Flow $M 297.9 866.8
LOM Income Taxes & Mining Duties $M 1,258.1 4,440.2
Total LOM After-Tax Cash Flow $M 2,061.1 6,385.2
Average Annual After-Tax Cash Flow $M 202.8 542.5
Pre-Tax NPV5% $M 1,637.4 5,825.3
After-Tax NPV5% $M 974.2 3,347.8
Pre-Tax IRR % 23.0% 36.0%
After-Tax IRR % 18.9% 28.2%
Operating Costs $M 3,487.8 4,994.3
Transport, Refining & Smelting $M 672.9 669.9
Royalties $M 184.9 407.8
By-Product Credit $M (2,627.2) (3,731.9)
Pre-Production CAPEX $M 1,080.6 1,753.8
Sustaining CAPEX $M 674.0 979.0
Closure (net of salvage value) $M 88.4 145.5
Gold Price US$/oz 1,600 3,600
Exchange Rate (US$:$) $/US$ 1.28 1.34
After-Tax Payback Years 4.8 3.3
(1) The NI 43-101 report dated effective March 18, 2021, and entitled “Feasibility Study Horne 5 Gold Project” (“2021 FS”).
(2) Gold equivalent (AuEq) grade was estimated using Mineral Reserve grades and metal prices, and do not reflect the impact of metallurgical recoveries, smelter
payability terms, offsite costs, or silver stream obligations.
*AISC are presented as defined by the World Gold Council less Corporate general & administrative (“G&A”) costs.
TABLE 2: SENSITIVITIES (2026 FEASIBILITY STUDY BASE CASE IN BOLD)
Gold Price US$/oz 2,000 2,400 2,800 3,200 3,600 4,000 4,400 4,800 5,200
Pre-Tax NPV5% $M 1,731 2,754 3,778 4,802 5,825 6,849 7,873 8,896 9,920
After-Tax NPV5% $M 945 1,561 2,166 2,759 3,348 3,931 4,514 5,096 5,674
Pre-Tax IRR 16.4% 21.9% 26.9% 31.6% 36.0% 40.1% 44.1% 47.9% 51.6%
After-Tax IRR 12.9% 17.3% 21.3% 24.9% 28.2% 31.3% 34.3% 37.1% 39.8%
Pre-Tax Payback Years 5.8 4.5 3.7 3.2 2.8 2.5 2.3 2.1 2.0
After-Tax Payback Years 6.2 5.0 4.2 3.7 3.3 3.0 2.8 2.6 2.4
Copper Price US$/lb 3.20 3.60 4.00 4.40 4.80 5.20 5.60 6.00 6.40
Pre-Tax NPV5% $M 5,549 5,618 5,687 5,756 5,825 5,894 5,964 6,033 6,102
After-Tax NPV5% $M 3,189 3,229 3,269 3,308 3,348 3,387 3,427 3,466 3,506
Pre-Tax IRR 34.9% 35.1% 35.4% 35.7% 36.0% 36.2% 36.5% 36.8% 37.0%
After-Tax IRR 27.4% 27.6% 27.8% 28.0% 28.2% 28.4% 28.6% 28.8% 29.0%
Pre-Tax Payback Years 2.9 2.9 2.9 2.9 2.8 2.8 2.8 2.8 2.7
After-Tax Payback Years 3.4 3.4 3.3 3.3 3.3 3.3 3.3 3.2 3.2
Zinc Price US$/lb 0.75 0.90 1.05 1.20 1.35 1.50 1.65 1.80 1.95
Pre-Tax NPV5% $M 5,342 5,463 5,583 5,704 5,825 5,946 6,067 6,188 6,309
After-Tax NPV5% $M 3,069 3,139 3,209 3,278 3,348 3,417 3,486 3,555 3,624
Pre-Tax IRR 33.7% 34.2% 34.8% 35.4% 36.0% 36.5% 37.1% 37.7% 38.2%
After-Tax IRR 26.5% 26.9% 27.3% 27.8% 28.2% 28.6% 29.0% 29.4% 29.9%
Pre-Tax Payback Years 3.0 3.0 2.9 2.9 2.8 2.8 2.7 2.7 2.7
After-Tax Payback Years 3.5 3.4 3.4 3.3 3.3 3.3 3.2 3.2 3.1
FX: $1.00: US$ 0.88 0.84 0.81 0.78 0.75 0.72 0.69 0.67 0.65
Pre-Tax NPV5% $M 4,173 4,586 4,999 5,412 5,825 6,238 6,651 7,065 7,478
After-Tax NPV5% $M 2,414 2,649 2,882 3,116 3,348 3,578 3,809 4,039 4,269
Pre-Tax IRR 28.7% 30.6% 32.4% 34.2% 36.0% 37.7% 39.4% 41.0% 42.6%
After-Tax IRR 22.8% 24.2% 25.6% 26.9% 28.2% 29.5% 30.7% 31.9% 33.1%
Pre-Tax Payback Years 3.5 3.3 3.1 3.0 2.8 2.7 2.6 2.5 2.4
After-Tax Payback Years 3.9 3.7 3.6 3.4 3.3 3.2 3.1 3.0 2.9
ROUYN-NORANDA ADVANTAGE
The Horne 5 Project is located in Québec’s prolific Rouyn-Noranda mining camp and benefits from extensive existing infrastructure,
including road and rail access, hydro-electric power distribution system, and a well-established local contractor and supplier base.
The Project is situated adjacent to the Horne smelting facility (the “Glencore Smelter”), owned and operated by Glencore Canada
Corporation (“Glencore”). The Glencore Smelter processes copper concentrates and precious metal-bearing recyclable materials
to produce 99.1% copper anodes.
Québec is recognized as a leading global jurisdiction to host a mining project and major advantages include:
• Qualified mining labour expertise;
• Strong and well-established network of mining suppliers and contractors;
• Access to reliable, low-cost renewable hydro-electric power;
• Well established regulatory and permitting frameworks;
• Stable and competitive taxation regime; and
• Strong collaboration between government, industry and local stakeholders to support responsible mine development.
In addition, the Québec Government has established the Mining Innovation Zone ( the “ZIM”) in City of Rouyn -Noranda, Québec
(the “ City of RN ”), a collaborative ecosystem that will unite industry participants, academic institutions, research centres,
communities and government stakeholders to advance Québec’s objective of becoming a world leader in next -generation mining.
By fostering innovation, skills development and sustainable mining practices, the ZIM supports the sector’s transition toward more
responsible and efficient operations, while promoting the development and commercialization of critic al and strategic minerals
essential to the energy transition.
OPPORTUNITIES TO ENHANCE VALUE
While Falco considers the results of the 2026 Feasibility Study under the base case scenario to be highly attractive, future
optimization studies are anticipated to evaluate alternative development strategies aimed at enhancing cash flow during the early
years of the LOM. Key areas of focus include: (1) the significant exploration potential at depth and surrounding the Horne 5 Project,
with opportunities to expand mineral resources and extend LOM through additional drilling; (2) assessing the potential for larger
underground stopes through ongoing geotechnical investigations, modelling and detailed mining design studies; and (3) identifying
operational and commercial synergies with the adjacent Glencore Smelter. In addition, the Corporation may benefit from its
extensive and highly prospective regional land package, which encompasses approximately 60,000 hectares and offers further
exploration and growth opportunities.
CONTRIBUTORS
The independent 2026 Feasibility Study was prepared through the collaboration of several industry-recognized consulting firms,
including BBA Inc. (“ BBA”), WSP Canada Inc. (“ WSP”), ASDR Canada inc. (“ ASDR”), Norda Stelo Inc. (“ Norda Stelo ”) and
Ingénierie RIVVAL Inc. (“RIVVAL”). These firms provided mineral resource and mineral reserve estimates, design parameters and
cost estimates for mine operations, processing facilities, major equipment selection, waste and tailings storage, reclamation,
operating and capital expenditures . The preparation of the 2026 FS was overseen by Mr. Luc Lessard, P. Eng., President and
Chief Executive Officer of the Corporation.
UPDATED FEASIBILITY STUDY COMPONENTS
Mineral Resource Estimate
The Mineral Resources presented in the 2026 FS are based upon an updated mineral resource estimate (the “ Current MRE”)
effective as of June 2, 2026, prepared by Martin Perron, P. Eng., of Norda Stelo, using available information. The main objective
was to update the previous NI 43-101 Mineral Resource Estimate for the Horne 5 deposit, which was prepared by InnovExplo Inc.
and included in the 2017 FS (the “November 2016 MRE”) and the 2021 FS. The Mineral Resources presented in the 2026 FS was
used to develop the Mineral Reserves presented below.
The Current MRE is primarily based on changes made to the NSR parameters, supported by new assumptions concerning metal
prices and net recoveries and the creation of potentially mineable shape to constrain the MRE. No changes to the interpretation
were deemed necessary. The M ineral Resource model for the C urrent MRE is based largely upon the model generated for the
November 2016 MRE and 2017 Feasibility Study.
The Current MRE is prepared following CIM standards and guidelines for reporting Mineral Resources and Reserves. The selected
NSR cut -off of $ 75/t and the mineable shape constrain used allowed the M ineral Resource to be outlined for a potential
underground mining scenario. While the results are presented undiluted and in situ, the reported Mineral Resources are considered
by the qualified persons under NI 43-101 (“QP”), to satisfy the reasonable prospects for eventual economic extraction.
The results of the Current MRE are presented in the table below. Norda Stelo estimates that the Horne 5 deposit contains, based
on an NSR cut-off of $75/t, Measured Mineral Resources of 13.0 M tonnes at $203.47/t NSR value, Indicated Mineral Resources
of 109.4M tonnes at $204.98/t NSR value, and Inferred Mineral Resources of 30.1M tonnes at $191.98/t NSR value.
TABLE 3: MINERAL RESOURCES TABLE (1)
Resource
Category
Tonnes
(Mt)
NSR
($/t)
AuEq
(g/t)
Au
(g/t)
Ag
(g/t)
Cu
(%)
Zn
(%)
Contained
AuEq
(Moz)
Contained
Au (Moz)
Contained
Ag (Moz)
Contained
Cu (Mlbs)
Contained
Zn (Mlbs)
Measured 13.049 203.47 1.80 1.30 14.64 0.15 0.65 0.754 0.547 6.143 44.175 186.654
Indicated 109.403 204.98 1.81 1.33 13.27 0.15 0.70 6.383 4.669 46.678 363.522 1,693.832
Measured
+
Indicated
122.452
204.82
1.81
1.32
13.42
0.15
0.70
7.137
5.216
52.822
407.697
1,880.486
Inferred 30.071 191.98 1.74 1.23 17.17 0.17 0.55 1.681 1.189 16.601 110.218 363.640
(1) Please refer to the Mineral Resources Estimate Notes below.
MINERAL RESOURCE ESTIMATE NOTES:
1. The independent and qualified person for the M ineral Resource Estimate, as defined by NI 43- 101, is Martin Perron, P. Eng., of Norda
Stelo, and the effective date of the estimate is June 2, 2026.
2. The Mineral Resources are inclusive of Mineral Reserves.
3. These Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability.
4. The Mineral Resource Estimate follows 2014 CIM Standards and Definitions and 2019 CIM definitions and guidelines for Mineral Resources.
5. The Mineral Resource was estimated using Geovia GEMS 6.8. A minimum true thickness of 7.0 m was applied, using the grade of the
adjacent material when assayed, or a value of zero when not assayed. Only the silver interpolation in the Inferred resources does not use
the material when not assayed.
6. High-grade capping was done on raw assay data prior to compositing (3.0 m) and established on a per zone basis for gold (25 to 35 g/t)
and silver (40 to 165 g/t). No capping was applied to Cu and Zn data.
7. The resources were evaluated from drill holes using an ID2 interpolation method in a block model (block size = 5 x 5 x 5 m).
8. The NSR cut-off grade of $75/t is based on mining costs of $16.90/t, milling costs of $28.13/t and G&A of $29.97/t.
9. The NSR estimated value of the resources are based on: Exchange rate of $1.35/1.00 US$; Metal prices for gold 3,300 US$/oz, silver 40.00
US$/oz, copper 4.60 US$/lb, zinc 1.25 US$/lb; Net recoveries are variable in function of grade of each commodity. Smelting cost (including
transportation) of $7.82/t.
10. ‘’Deswik Stope Optimizer’’ module (DSO) in Deswik software was used to create potentially mineable shapes.
11. Density values used were interpolated using an ID2 method for the ENV_A and HG_A to HG_F, averaging 3.41 g/cm3 for 91% of the
Project. For the remaining area, the density values were fixed at 2.88 g/cm3 for ENV_B to ENV_E and at 2.67 g/cm3 for ENV_F.
12. The resource categories were assigned using clipping boundaries. Measured category was established for blocks interpolated during the
first two passes within 15 m closest distance from historical channel samples within the same mineralized zone. Indicated category was
established for blocks interpolated during the first two passes within 25 m closest distance from a composite.
13. Results are presented in situ. Ounce (troy) = metric tons x grade / 31.10348, and 22.05 for g/t to pounds. Calculations used metric units
(metres, tonnes, g/t). The number of tonnes was rounded to the nearest thousand. Any discrepancies in the totals are due to rounding
effects. Rounding followed the recommendations as per NI 43- 101. Au Equivalent grade is calculated based on the value of all metals as
stated in Point 9 reported to the value of an ounce of Gold.
14. The author is not aware of any known environmental, permitting, legal, title-related, taxation, socio-political or marketing issues, or any other
relevant issues not reported in this technical report that could materially affect the mineral resource estimate.
Mineral Reserve Estimate
The Mineral Reserve estimate for the Horne 5 Project (effective as of June 2, 2026) was prepared by Geneviève Auger, P.Eng.,
an employee of Norda Stelo. The Mineral Reserve estimate stated herein is prepared following the CIM Standards on Mineral
Resources and Mineral Reserves and is suitable for public reporting. As such, the mineral reserves are based on measured and
indicated mineral resources, and do not include any inferred miner al resources. Measured and indicated mineral resources are
inclusive of proven and probable reserves.
The 2026 Feasibility Study, LOM and the Mineral Reserve estimate were developed from the Current MRE. As of the date of this
release, the QP, has not identified any risks, legal, political, or environmental, that would materially affect potential development of
the Mineral Reserves other than the third-party approval discussed below.
There are no changes to the mining mineral reserves in the 2026 FS as compared to the 2017 FS and 2021 FS , except for an
update of the metal prices. The reserve is constrained to align with the parameters used in the project approval process. The metal
prices used in the mineral reserves are gold US$3,600/oz, copper US$4.80 /lb, zinc US $1.35/lb, silver US $50.00/oz and at an
exchange rate of $1.34 : US$1.00. Therefore, cut of grade was re-evaluated to $119/t NSR value.
TABLE 4: STATEMENT OF MINERAL RESERVES
1. The QP for the Mineral Reserve estimate is Geneviève Auger, P. Eng. from Norda Stelo.
2. Mineral Reserves have an effective date of June 2, 2026.
3. The metal prices used to support the MRE are: US$4.80/lb Cu, US$1.35/lb Zn, US$3,600/oz Au and US$50.00/oz Ag, using an exchange
rate of $1.34 : US$1.00 with a cut-off NSR value of $119/t.
4. Mineral Reserve tonnage and mined metal have been rounded to reflect the accuracy of the estimate and numbers may not add due to
rounding.
5. Mineral Reserves presented include both internal and external dilution along with mining recovery. The external dilution is estimated to be
2.3%. The mining recovery factor was set at 95% to account for mineralized material left in the margins of the deposit in each block.
TABLE 5: CAPITAL COSTS SUMMARY
2021 FS 2026 FS
Capital Costs ($M)
Pre-
Production Sustaining Total(1)
Pre-
Production Sustaining Total(1)
Mining 279.9 365.3 645.3 432.3 480.4 912.7
Mineral Processing Plant 400.6 14.8 415.4 635.9 24.5 660.4
Electrical and Communication 19.1 2.5 21.6 31.9 3.4 35.3
Project Infrastructure 98.1 4.5 102.6 167.4 5.4 172.8
Tailings and Water Management 64.1 286.9 351.1 101.4 295.4 396.8
Indirect Costs 78.4 - 78.4 138.5 80.9 219.4
Owner's Costs 49.6 - 49.6 73.8 - 73.8
Site restoration (net of salvage value) 88.4 88.4 - 145.5 145.5
Subtotal 989.9 762.4 1,752.3 1,581.3 1,035.6 2,616.8
Contingency 90.7 - 90.7 172.5 89.0 261.5
Total Capital Costs 1,080.6 762.4 1,843.0 1,753.8 1,124.6 2,878.3
CAPEX per Oz (US$/oz) 255 396
AISC per Oz (US$/oz) 586 782
All-In Cost per Oz (US$/oz) 842 1,178
(1) Totals may differ due to rounding.
TABLE 6: OPERATING COSTS SUMMARY
The LOM operating costs are summarized as follows:
2021 FS 2026 FS
Operating Costs $M $M
Mining 994.1 1,410.9
Processing 1,776.8 2,403.4
Tailings & Water Management 480.4 826.1
G & A 236.5 353.9
Total Operating Costs 3,487.8 4,994.3
Category Tonnes (Mt) NSR ($/t) Au (g/t) Ag (g/t) Cu (%) Zn (%)
Proven 8.4 223.0 1.41 15.8 0.17 0.75
Probable 72.5 246.0 1.44 14.0 0.17 0.78
P&P 80.9 245.7 1.44 14.1 0.17 0.77
The average unit costs per tonne over the LOM are:
2021 FS 2026 FS
Operating Costs $/t Milled $/t Milled
Mining 12.3 17.4
Processing 22.0 29.7
Tailings & Water Management 5.9 10.2
G & A 2.9 4.4
Total Operating Costs Per Tonne Milled 43.1 61.7
Mining
The underground deposit is located at a depth of approximately 600 metres to 2,300 metres below surface. The existing Quemont
#2 shaft, which extends to a depth of approximately 1,200 metres, would need to be rehabilitated. The shaft would provide for the
hoisting of mineralized material and waste, services personnel and materials, and the supply of ventilation to the underground
workings in the development stage.
The mine has been designed to achieve low operating costs through the use of large- scale, modern mining equipment, gravity-
assisted transport of mineralized material through raises, shaft hoisting, minimal mineralized material and waste re- handling, and
high productivity bulk mining methods. The operation will incorporate state-of-the-art technologies, including advanced automation
and tele-operation equipment. These systems are expected to enable the efficient operation of 25-tonne LHD (Load-Haul-Dump)
for transporting ore to the ore pass systems. The underground crushing facility would be fed by two ore pass systems. The crushed
mineralized material would then be transported via two 250- metre conveyors and transferred to a 600- metre conveyor leading to
the shaft loading poi nt, where it would be hoisted to the surface using 43.5- tonne skips on a continuous basis. For servicing the
mine, the shaft would have a double- deck service cage and a double- deck auxiliary cage. Paste ba ckfill would be used to fill the
extracted stopes and strengthen stability of the adjacent stopes and avoid or minimize dilution.
The Corporation intends to use transverse long hole stoping as the primary mining method, with mine designs prioritizing the
minimization of dilution over Mineral Resource recovery. The Corporation expects that the mineral resource dilution will be
below 3%.
Processing
The Process Plant is designed to process approximately 15,800 tonnes of mineralized material per day through a conventional
Semi-Autogenous Grinding (SAG) and ball milling circuit. The grinding circuit will produce a primary grind size of approximately
P80 55 microns, providing feed to the downstream flotation circuits.
The process plant will recover copper, zinc, gold, and silver through a combination of flotation and leaching technologies. Following
grinding, flotation circuits will produce three concentrates: a copper concentrate, a zinc concentrate, and a pyrite concentrate. The
copper and zinc concentrates will be filtered and prepared for shipment by truck and rail.
To enhance gold and silver extraction, the pyrite concentrate will undergo additional fine grinding to a target regrind size of P 80 12
microns, followed by cyanide leaching and carbon- in-pulp (CIP) recovery. A separate leaching and CIP circuit will also treat the
pyrite flotation tailings to recover additional gold and silver. Gold and silver recovered through these circuits will be r efined into
doré bars for sale.
The process plant has been designed to maximize water recycling and reagent recovery, including cyanide destruction systems to
minimize environmental impacts. Fine and coarse pyrite tailings generated by the process will be used as paste backfill in
underground mine workings where possible, reducing surface tailings storage requirements. Any excess tailings not required for
backfill will be deposited in the tailings management facility. Water recovered from underground backfill operations and tail ings
management activities will be recycled back to the process plant, supporting efficient water management and reducing freshwater
requirements.
Over the life of mine, average payable recoveries are estimated at 88.3% for gold, 75.7% for copper, 72.8% for zinc, and 74.2%
for silver. The Project is expected to produce a copper concentrate grading approximately 16% copper and a zinc concentrate
grading approximately 52% zinc, both containing payable gold and silver credits. Metallurgical testing has confirmed that the
concentrates are free of significant deleterious elements, supporting their marketability to smelter customers.
Surface Infrastructure
The Horne 5 Project is located within the industrial park and former mining infrastructure footprint (including the Quemont and
Horne mines) of the City of RN, a well-established mining community of over 42,000 residents. The Project benefits from extensive
existing infrastructure, as well as a deep regional pool of underground mining expertise. Equally important, the Corporation believes
that the Project’s strategic location enhances its long-term operational viability and strengthens its attractiveness as an employer,
as it offers employees and contractors the opportunity to work within the same community in which they reside, a unique advantage
within the mining industry.
The Horne 5 Project is located approximately 1.1 km from Route 101 and 4.0 km from the Trans-Canada Highway, with all essential
services readily accessible on site. The Horne 5 Project is also situat ed less than 700 meters from the Glencore Smelter. Future
mine development is planned within the former Quemont mine site, for which Falco has acquired the surface rights. Electric power
is expected to be supplied at 120 kV, originating from the nearby Hydro-Québec, Rouyn-Noranda substation.
The Horne 5 Project envisions the following key infrastructure items to support the mine to be constructed: site access road, on-
site parking area, process plant , including site offices, dry and paste backfill plant, headframe and shaft house, hoist building ,
120kV sub-station and railway spur lines and storage area.
Environment and Permitting
Environmental baseline studies were initiated in 2016 and have continued to support the permitting process and the project timeline.
The Horne 5 Project is subject to a provincial environmental impact assessment (“EIA”) and review procedure under the
Environment Quality Act, including public hearings and the issuance of a decree (the “Decree”) by the provincial government. On
December 6, 2017, Falco was advised by the Canadian Environmental Assessment Agency (Government of Canada) that the
Horne 5 Project i s not a designated activity under the Regulations Designating Physical Activities pursuant to the Canadian
Environmental Assessment Act. Therefore, the Horne 5 Project is not subject to the federal environmental assessment. However,
other federal authorizations will need to be obtained.
The E IA of the Project was filed with the Ministry of the Environment, the Fight Against Climate Change, Wildlife and Parks
(“MEFACCWP”) in January 2018, was confirm ed admissible in March 2024, allowing the public information and consultation
process led by the Québec Environmental Public Hearings Board (Bureau d’audiences publiques sur l’environnement or “BAPE”)
to begin. Public hearings conducted by the BAPE were held in Rouyn-Noranda in the August-October 2024 period. Following these
consultations, the B APE’s report was published in January 2025 providing its recommendations to support the government’s
decision to whether to authorize the Project.
Since the publication of the BAPE’s report, the MEFACCWP has continued its environmental review of the Project which is
expected to be completed in the Fall of 2026.
As part of its ongoing discussions with the MEFACCWP, Falco has obtained written confirmation that the government’s analysis
is progressing well and that the information provided to date has led to specific solutions for the identified environmental issues.
Similarly, the Premier’s office stated that it was fully committed to the economic development of the regions and wanted Québec
to become a leader in the production and processing of critical and strategic minerals .
Falco continues to engage with stakeholders to ensure the harmonious integration of the P roject in the community.
A government decision regarding the authorization of the Project and issuance of the Decree is expected by the end of 2026.
Following project authorization, Falco will be required to conduct numerous studies, prepare permit applications and secure t he
required regulatory approvals to continue developing the Project.