QUEBEC – Montreal’s Falco Resources has released a feasibility study that points toward an all-in sustaining cost of $399/oz., net of by-product credits, for gold produced at its Horne 5 project in the Rouyn-Noranda camp. The company calls the project a “robust, high margin, 15 year underground mine” using gold at US$1,300/oz. (All dollar amounts are U.S.)
Falco plans to control underground operations – hoist, loaders, ventilation, backfill, water pumping – at the Horne 5 mine from the surface. (Credit: Falco Resources)
The feasibility study gives Horne 5 a net present value of $1.0 billion at a 5% discount and an internal rate of return of 18.9% before taxes and mining duties. After taxes and duties, the project has an NPV of $602.0 million at a 5% discount and an IRR of 15.3%. With a net payable gold recovery of 88.1%, the project will average 219,000 oz of gold annually over its 15-year life.
The Horne 5 deposit has a measured resource of 9.3 million tonnes grading 2.59 g/t gold equivalent, an indicated resource of 81.9 million tonnes at 2.56 g/t gold equivalent, and an inferred resource of 21.5 million tonnes at 2.51 g/t gold equivalent. Falco plans to recover 3.3 million oz. of payable gold, 1.0 billion lb. of zinc, 229.0 million lb. of copper, and 26.4 million oz. of silver over the life of the project.
Falco has already spent $26.7 million at Horne 5. Additional preproduction costs are estimated at $801.7 million, including a $58.5 million contingency. The feasibility study estimates the project will generate $6.6 billion in gross revenue and an operating cash flow of $2.7 billion over 15 years.
Additional information from the feasibility study can be read in the news release dated Oct. 16, 2017, and posted at www.FalcoRes.com. Or see the most recent corporate presentation at the same URL.