Name of the Project

Horne 5 project.

Location

Rouyn-Noranda, Québec, Canada.

Project Owner/s

Falco Resources, which owns 100% of the project.

Project Description

Falco announced the results in June 2026 of an updated feasibility study, which supersedes the 2021 feasibility study.

It confirms a technically and economically viable 15-year underground operation, with materially improved project economics reflecting updated metal-price assumptions, and capital and operating costs.

The project has proven and probable mineral reserves of 80.9-million tonnes grading 1.44 g/t gold, 14.1 g/t silver, 0.17% copper and 0.77% zinc.

It entails the development of a large-scale underground gold-rich polymetallic mine beneath the former Horne mine in the established Rouyn-Noranda mining camp.

The existing Quemont No 2 shaft, which reaches a depth of about 1 200 m, will be rehabilitated for hoisting ore and waste, transporting personnel and materials, and providing ventilation during development.

Transverse longhole stoping is planned as the primary mining method, supported by large-scale equipment, gravity-assisted ore handling, underground crushing, conveyors, shaft hoisting, automation and teleremote operation.

Paste backfill will be used to support mined-out stopes and minimise dilution.

A 15 800 t/d processing plant will use semiautogenous and ball milling, followed by flotation and leaching.

The plant will produce copper, zinc and pyrite concentrates.

The pyrite concentrate and flotation tailings will be subjected to fine grinding, cyanide leaching and carbon-in-pulp recovery to produce gold and silver doré.

Surplus tailings are planned to be deposited at a former tailings site about 11 km from Rouyn-Noranda.

The 15-year mine plan provides for average payable gold production of about 220 300 oz/y. Life-of-mine (LoM) production is estimated at 3.3-million payable ounces of gold, 27.29-million payable ounces of silver, 247.3-million pounds of copper and 1.19-billion pounds of
zinc.

The project has potential for further underground development.

Potential Job Creation

Up to 900 direct jobs are expected during peak construction, with about 500 permanent jobs to be created during operations.

Net Present Value/Internal Rate of Return

Using a base case gold price of $3 600/oz, the project has an after-tax net present value, at a 5% discount rate, of C$3.35-billion, an unlevered after-tax internal rate of return of 28.2% and an after-tax payback period of 3.3 years. Projected LoM after-tax cash flow is C$6.4-
billion.

Using spot prices as at May 31, 2026, the after-tax net present value increases to C$5.1-billion, the after-tax internal rate of return to 37.2% and the payback period decreases to 2.6 years.

Capital Expenditure

Preproduction capital is estimated at C$1.75-billion, including a 10.9% contingency. Sustaining capital is estimated at C$1.12-billion, resulting in total LoM capital expenditure of about C$2.88-billion.

Planned Start/End Date

A Québec government decision on the project’s environmental authorisation and the issuance of a decree are expected by the end of 2026. Detailed engineering, further permitting, preproduction dewatering and project financing will follow. Construction and first-production dates have not been announced.

Latest Developments

Québec’s environmental review is continuing, following public hearings held in 2024 and the publication of the environmental public hearings board’s report in January 2025.

Falco has said the provincial environment ministry’s analysis is progressing and that solutions have been identified for the principal environmental issues.

The company’s next steps include completing outstanding environmental studies, initiating detailed engineering, applying for dewatering permits, securing additional surface rights and advancing project financing.

Key Contracts, Suppliers and Consultants

BBA (feasibility-study integration, mineral processing, process plant design, economic analysis and selected infrastructure and environmental work); Norda Stelo (mineral resource and reserve estimates, underground mine design and selected cost estimates); WSP Canada (shaft systems, water treatment, paste backfill, geotechnical, tailings and underground infrastructure work); ASDR Canada (tailings management facility water-treatment plant); and Ingénierie RIVVAL (railway
infrastructure).

Contact Details for Project Information

Falco Resources, tel +1 514 261 3336 or

email info@falcores.com.