Falco Updates ON Horne 5 Project Development and Exploration Activities
For Immediate Release TSX.V - FPC
FALCO UPDATES ON HORNE 5 PROJECT DEVELOPMENT
AND EXPLORATION ACTIVITIES
(Montreal, Québec, January 10, 2018) – Falco Resources Ltd. (FPC: TSX-V) (“Falco” or the “Company”) is
pleased to provide the following update on its development of the Horne 5 Project (the “Project”) ,
exploration and corporate activities.
HORNE 5 PROJECT DEVELOPMENT:
Community Relations and Permitting
The Company has continued its community outreach program and held on November 16, 2017 its initial
project presentation and session in Rouyn -Noranda. Approximately 140 individuals attended the
meeting and heard C ompany representatives outline the various aspects of t he Project, and respond to
their observations and questions.
The Company has also been advised by the Canadian Environmental Assessment Agency (Government
of Canada) on December 6 , 2017 that the Project is not a designated activity under the Regulations
Designating Physical Activities pursuant to the Canadian Environmental Assessment Act, 2012 .
Therefore, the P roject is not subject to the f ederal environmental assessment; however, there will be
other federal authorizations to be obtained.
Pavillon Quemont School Construction
The Pavillon Quemont School (“Pavillon”) construction program is advancing very well. The building was
erected, closed off and winterized prior to year-end. The Pavillon construction program is 30% complete
and Falco is on schedule to deliver the Pavillon to the local school board of Rouyn -Noranda for
September 2018. The relocation and construction costs of the Pavillon are estimated at $22.5 million.
Pictures 1-2: Pavillon Quemont Construction Advancement
Hoisting System Construction and Delivery of Key Components
Construction of the hoist building that will host the auxiliary and service hoists commenced in December
2017 and is expected to be completed during the second quarter of 2018 . The hoist building
construction will enable the Company to start the mine dewatering and Quemont shaft r ehabilitation
efforts efficiently and safely.
Key auxiliary and service hoisting system components were shipped to site on December 22, 2017. The
Company anticipates assembling the two hoists following the completion of the hoist building.
Pictures 3-4-5-6: Hoist Building Construction and Delivery of Components
Acquisition Program
The Company also acquired land, surface rights an d strategic buildings near the Project footprint. As
such, the Company acquired specific infrastructure and buildings from third parties, exercised its existing
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option to acquire land from the city of Rouyn -Noranda, and signed several other agreements. The total
purchase price of these acquisitions was $9.0 million.
Dewatering Program
Major equipment for the water treatment facility and pumping system were ordered . The water
treatment facility components are expected to be received during the first quarte r of 2018 . The
treatment facility and pumping system will have a capacity of 600 cubic metres per hour. The certificate
of authorization required for the dewatering is still under review with the Qu ébec Government. Other
authorizations from a third party are also required to proceed with the dewatering program.
Detailed Engineering
The Company has commenced the detailed engineering and procurement of equipment shop drawings
in relation to the Project. The current fo cus is the water treatment plant, the electrical sub-station and
hoisting facilities. During most of 2018, detailed engineering will focus on the processing and mining
sectors. The Company intends to have advanced and nearly completed the entire detailed engineering
work program ahead of the start of surface construction.
EXPLORATION PROGRAM:
2017 Regional Exploration Program
The Company drilled about 54,500 meters, completed 77 drill holes, with three holes remaining to
complete the 2017 program. A total of 25 targets were worked on during the 2017 regional exploration
program. As of today, 13,250 out of 26,250 or 50 % of the samples analyzed have yet to be received
from the assay lab. Thus far, the best intercepts included a shallow intercept at L ac Clericy (1.2 g/t Au
over 9.1 m from 124.4 to 133.5 m), a deeper intercept at Noralex (1.4 g/t Au over 22.4 m from 407.6 to
430.0 m) and another intercept at Flavrian (1.3 g/t Au over 13.5 m from 325 to 338.5 m). Several targets
of the 2017 program will require follow up with further drill holes and geophysical work in 2018.
2018 Donalda Exploration Program
On December 21, 2017, the Company closed a $8.5 million private placement financing to fund its 2018
exploration program. The bulk of the placement proceeds will be spent on the Donalda property and
surrounding properties located near Horne and Quemont. The Donalda property is located 800 metres
east of the Horne 5 deposit. In 2017, about 4, 700 metres were drilled on the Donalda property, results
are pending. The drilling consisted of testing the extensions of the known mineralization and confirming
historical results. Following the reception of results, a preliminary NI 43-101 resources calculation will be
initiated. Given its close proximity to the Horne 5 deposit, potential underground mineralization would
be accessible from the Horne 5 future underground infrastructure. The Donalda targets consists of a
gold quartz vein system, however the volcanogenic massive sulfide potential remains to be tested.
Luc Lessard, President & CEO, commented, “Over the past 3 years, the Falco team has been extremely
active advancing the Horne 5 Project to its current state . In 2018, the team’s efforts will continue to
intensify as we strive to replicate the development s uccess of t he world-class Canadian Malartic mine
which was discovered, defined, financed, built and put in production, from first drill hole to first gold
pour, in a little over six years, which several members of the Falco team were instrumental in achieving.”
Qualified Persons
Mr. Luc Lessard, President & CEO, (P. Eng.) is the qualified person for this release as defined by National
Instrument 43 -101 and has reviewed and verified the technical inform ation contained in this news
release.
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Mr. Claude Berni er, Exploration Manager, (P.Geo. Eng.) is the qualified person as defined by National
Instrument 43-101 who has reviewed and verified the technical information relating to the exploration
program contained in this news release.
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 about 67,000 hectares of land in the
Rouyn-Noranda mining camp, which represents approximately 70% of the e ntire camp and includes 13
former gold and base metal mine sites. Falco's principal asset is the Horne 5 Project located in 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 Gold Royalties Ltd is the largest shareholder of t he
Company and currently owns 12.6% of the issued and outstanding shares of the Company. The Company
has 188,957,863 shares issued and outstanding.
For further information contact:
Vincent Metcalfe
Chief Financial Officer
514-905-3162
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 Note Regarding Forward-Looking Statements
This news release contains forward -looking statements and forward -looking information (together, "forward -
looking statements") within the meaning of applicable securities laws and the United States Private Securities
Litigation Reform Act of 1995. All stat ements, other than statements of historical facts, are forward -looking
statements. Generally, forward -looking statements can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain
actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward -
looking statements involve risks, uncertainties and other factors that could cause actual results, pe rformance,
prospects and opportunities to differ materially from those expressed or implied by such forward -looking
statements. Factors that could cause actual results to differ materially from these forward -looking statements
include the reliability of th e historical data referenced in this press release , the timely obtaining, as the case may
be, by Falco of all required licenses, rights of way and surface rights from third parties owner of infrastructures or
rights necessary to perform the activities cont emplated in this press release on terms and conditions acceptable to
the Company and such third parties and those risks set out in Falco's public documents, including in each
management discussion and analysis, filed on SEDAR at www.sedar.com. Although Falc o believes that the
assumptions and factors used in preparing the forward -looking statements are reasonable, undue reliance should
not be placed on these statements, which only apply as of the date of this news release, and no assurance can be
given that s uch events will occur in the disclosed times frames or at all. Except where required by applicable law,
Falco disclaims any intention or obligation to update or revise any forward -looking statement, whether as a result
of new information, future events or otherwise.
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Picture 1:
Pavillon Quemont Construction – South View
Picture 2: Pavillon Quemont Construction – North View
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Picture 3: Hoist Building Construction
Picture 4: Hoist Building Construction: Main concrete slab pour
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Picture 5-6: Hoisting System Components Delivery: Main shaft for auxiliary hoist