Luc Lessard, President & CEO,


"The Horne 5 project is very compelling because of its large size and favourable location. While essentially a gold project, Horne 5 is a polymetallic system with significant base metals, including copper and zinc."

Can you provide a summary of Falco Resources and its presence in Québec?

Falco Resources is a Canadian mining company focused on developing its Horne 5 project in the Abitibi region of Québec. We also own a large, prospective land package with approximately 70,000 hectares in the region that has been the site of 13 historical mines over the last 25 years.

Since 2018, we have been engaged in extensive consultation and outreach programs with the Province of Québec and the community of Rouyn-Noranda who we view as important stakeholders in the development of the Horne 5 Project.

After 3 years of working closely with Glencore to complete technical analysis, we signed copper and zinc offtake agreements in late 2020, and recently signed an Agreement in Principle to finalize a Principal Operating Agreement, expected in Q3 of this year. These are major milestones for Falco and position the company to advance the Horne 5 project through 2022 and beyond.

What are the characteristics that make Horne 5 such an attractive project?

The Horne 5 project is very compelling because of its large size and favourable location. While essentially a gold project, Horne 5 is a fully mineralized, polymetallic system with significant base metals, including copper and zinc.

We released our Updated Feasibility Study in May 2021 which estimated annual gold production of over 220,000 oz/year with low All-in Sustaining Costs of US$587/oz resulting in a robust NPV of US$761 million and an IRR of 18.9% after taxes and mining duties.

Our location is advantageous because it gives us access to a highly skilled and very experienced labour force with a long history in the mining industry. Also, key infrastructure is already in place to support the Horne 5 Project, which includes the green hydro Québec power source, surface access, underground workings, and airport and railway facilities.

Falco is Partnered with Osisko Gold Royalties and Osisko Development, can you speak to the structure of this partnership and how it helps advance the development of the project?

The Osisko family has been strong supporters throughout the evolution and development of the Horne 5 project. We signed a silver stream agreement with Osisko Gold Royalties (OGR-T) in February 2018, in which Osisko agreed to commit up to US$180 million through a silver stream toward the funding of the development of the Horne 5 project. In 2020, Osisko Gold Royalties moved its interest in Falco, along with other equity stakes in development projects, into the new entity Osisko Developments (ODV-T) which is now Falco's largest shareholder with an 18.2% equity stake.

What went into your decision to automate, and what does it mean for the environmental footprint of the project?

The Horne 5 deposit is an enormous system amenable to highly-automized, bulk mining methods. As detailed in the Feasibility Study, we plan to utilize the largest and most advanced underground mining equipment available, including an electric fleet where possible. This cutting-edge equipment will enable us to optimize efficiencies, ensure the safety of our employees and minimize the ventilation system requirements.

We are committed to minimizing Falco's environmental footprint by implementing advanced technologies and environmentally responsible practices across all of our activities. We view the effective management of the environmental impact from our activities as critical to our success as an organization. The design of our mine plan clearly reflects this commitment.

Why do you feel the market is undervaluing Falco resources relative to its peers, and what will lead to a re-rating of Falco’s stock?

Falco is really just being re-introduced to the market after an almost 3-year hiatus as we worked with our partner Glencore to complete important technical analysis relating to the Horne 5 project.

With these key agreements with Glencore now in place, and our Updated Feasibility Study complete, we are planning to focus on our market outreach efforts once again to raise the awareness of Falco in the market.