Located in the Rouyn-Noranda area, Horne 5 lies at a depth of between 600 and 2,300 metres, below the past-producing Horne mine. In order to access the gold-silver-copper-zinc deposit, Falco needs to rehabilitate an existing shaft, owned by Glencore. Glencore owns the mining concession at the property, while Falco holds mineral rights below 200 metres and surface rights around the shaft.
“The agreement with Glencore is a major step for Falco,” said Haywood Securities’ mining analyst Pierre Vaillancourt in a research note. “Assuming the Principal Operating License and Indemnity Agreement are finalized in (the third quarter), and progress is made with permitting and early works, Falco will be in position to start the dewatering process for Horne 5 by the summer of 2022.”
The two companies previously signed a life-of-mine offtake agreement for copper and zinc concentrates last October, and began a C$7.5 million work program in November to mitigate potential risks to Glencore’s operations from Horne 5. The program, financed largely through a convertible debenture financing provided by Glencore, includes geotechnical and water management work as well as an investigation of synergies between the project and the Horne Smelter.
Falco released an updated feasibility study for Horne 5 in April outlining a $844.2 million, 15-year mine producing 220,300 oz. of gold annually.
The project contains measured and indicated resources totalling 105.6 million tonnes grading 1.44 g/t gold, 14.32 g/t silver, 0.17% copper and 0.79% zinc (2.25 g/t gold-equivalent), based on a C$55 net smelter return cutoff. Inferred resources add 24.3 million tonnes grading 1.35 g/t gold, 21.4 g/t silver, 0.19% copper and 0.67% zinc (2.23 g/t gold-equivalent).
(This article first appeared in the Canadian Mining Journal)
