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Falco may get annual gold production of 236K Oz


Falco Resources results of a Preliminary Economic Assessment prepared in accordance with National Instrument 43-101 (NI 43-101) for the Company’s 100% owned Horne 5 Gold Project located in Rouyn-Noranda, Québec, Canada. The PEA indicates that the Horne 5 Project represents a robust, high margin, twelve year underground mining project with attractive economics in the current gold price environment.

At a gold price of US$1,250/oz and using an exchange rate of C$1.00 = US$0.75, the study shows that the Horne 5 Project would generate an after-tax net present value of $667 million and an Internal Rate of Return of 16.0%. In this scenario, the mine could become the next significant gold producer in Québec.

With a production profile averaging 236,000 ounces annually over the life of mine, with all-in sustaining cash cost of US$427 per ounce net of byproduct credits and all-in cost estimated at US$660 per ounce. Falco intends to move forward and immediately initiate a Feasibility Study on the Horne 5 Project, which is planned to be completed in the first semester of 2017.

The Environmental Impact Assessment study, which has been initiated by WSP, is expected to be completed in the first semester of 2017.