What factors make the Horne 5 project unique?

The Horne 5 project is well located in Rouyn-Noranda, in the Abitibi Region. The Horne 5 deposit is a vertical extension of the former Horne mine, operated by Noranda from 1926 to 1976. The geology corresponds to a massive polymetallic sulfide deposit: 2,000 meters high, 1,000 meters long, and 100 meters thick on average. This is a world-class deposit with 6.1 million oz AuEq in reserves and 9.3 million oz AuEq in resources all categories, with a high potential of increasing the life of mine at depth.

The Horne 5 project’s base metal content derives significant value that will enable Falco to bring all-in-sustaining costs (AISC) down to less than US$600/oz Au, compared with current producers who average US$1,200/oz Au. The Horne 5 project ranks in the first quartile of global low-cost operations AISC.

In terms of annual production, Falco is looking at 220,000 or 334,000 oz/y AuEq. Overall, 75% of revenues will come from precious metals (gold/silver), and 25% from base metals (copper/zinc).

As the deposit is massive, it is a real opportunity for a project to use a bigger size mining equipment fleet, including daily operations from surface. We will be using artificial intelligence for data collection to optimize our operations, and parameters in real time. Horne 5 will be a modern and highly automated operation. What are the catalysts ahead at Horne 5?

Presently, the Horne 5 project is in the permitting and financing phase. In January 2024, Falco obtained the operating license and indemnity agreement (OLIA) from Glencore. This agreement governs the relationships with Glencore for the development and operating of the project. In March, we received from the Government the Environmental Impact Assessment (EIA) admissibility giving us the possibility to initiate the public hearing process (BAPE) in the second half of 2024. Falco is engaged with the local community to deliver the most responsible project based on the ESG criteria. In addition, Falco will focus on project financing, and evaluating opportunities, which includes working with potential strategic partners for the development phase. Can you outline Falco’s exploration strategy?

The Horne 5 project is located in the Noranda mining camp, with 50 gold and base metal mines currently or historically active. Falco owns over 67,000 hectares of prospective exploration properties in less than 20 kms from the Horne 5 project, presenting good potential to extend the life of the mine going forward. Can you touch upon Falco’s partners?

Falco has a silver stream agreement with Osisko Gold Royalties up to C$180 million. Osisko Development is a major shareholder at 16.7%, Québec Institutions are shareholders at 8%, and Glencore is a long-standing partner with life of mine copper and zinc concentrate off-take agreements. How does Horne 5 fit into the Government’s approach to Critical and Strategic Minerals?

In addition to precious metals, the Horne 5 project will produce minerals that are critical and strategic to the development of the Québec economy: The copper concentrate generated by our processing facilities will be transported to the nearby Glencore Horne smelter. What makes Rouyn-Noranda an ideal place to run a mining operation?

Rouyn-Noranda is probably the best place in the world to build a mine, with access to skilled mining labor and an incredible network of contractors and suppliers. We want to repeat the Canadian Malartic execution plan with the Horne 5 project.