Name of the Project
Horne 5 project.

Location
Rouyn-Noranda, Québec, Canada.

Project Owner/s
Mineral developer 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. Falco filed the technical report on July 27, 2026.

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.

KPMG’s socioeconomic study, released in September 2026, projects about 22 800 direct and indirect person-years of employment in Québec, comprising 4 318 during preproduction and construction and 18 485 during operations and closure.

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. 

Planned Start/End Date
Falco expects Québec’s environmental assessment to conclude in the second half of 2026, followed by a government decision on the project’s authorisation decree. 

Development remains subject to the required permits and ministerial authorisations. Further studies and investigations are planned in the months following the decree. Construction and first-production dates are not stated in the September updates.

Latest Developments
Falco announced the results of KPMG’s socioeconomic-impact study on September 29, 2026. Based on the updated feasibility study, it projects a C$8.8-billion direct and indirect contribution to Québec’s GDP and about C$5.1-billion in municipal, provincial and federal tax revenues over the project’s life.

KPMG’s analysis considers about $12.1-billion of project expenditures over 15 years, including preproduction investments, recurring operating costs, and site maintenance and reclamation expenses.
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.