Professional services firm KPMG finds in a socioeconomic impact study on TSX-V-listed Falco Resources' Horne 5 project that it can contribute $8.8-billion to Québec's GDP over its lifetime.

KPMG was appointed to determine the significant economic and labour opportunities offered by the development of the Horne 5 copper and gold project, based on the project's updated feasibility report that was published in July.

Horne 5, particularly the area beneath the historic Horne mine, is Falco's main focus area within its 60 000 ha portfolio in the Abitibi-Témiscamingue Greenstone Belt. The area includes 13 former gold and base metal mine sites.

During a company called Noranda's operation of the Horne mine between 1927 and 1976, it produced 11.6-million ounces of gold and 2.5-billion pounds of copper.

KPMG's analysis considers the planned $12.1-billion of project expenditure over 15 years, including pre-production investments, recurring operating costs and site maintenance and reclamation expenses.

During the pre-production and construction phase, which will span about four years, KPMG estimates Horne 5 will generate $914-million in provincial GDP, or $228-million a year, as well as create 4 318 jobs. The provincial tax revenue alone is estimated at just under $60-million during this phase.

From a regional point of view, the Horne 5 development can contribute $644-million to Abitibi-Témiscamingue's GDP, or $161-million a year, and create 2 075 jobs. Local tax revenue will total about $3.5-million while federal tax revenue will be $32.7-million.

Over the project's operational and closure phases, which will span 15 years, the project will contribute $7.9-million to provincial GDP, sustain 18 485 jobs and provide $3.5-billion of provincial tax revenue. In the region, the GDP contribution will be $6.5-billion, 11 808 jobs and $37-million in local tax revenue. Federal tax revenue will be $1.4-billion, or $95-million every year.

Overall, 82% of the direct and indirect value generated by Horne 5 is expected to be accrued by the Abitibi-Témiscamingue region, which is expected to retain 61% of the jobs supported by the project.

Notably, KPMG confirms that Horne 5 will support workforce training and skills development with a focus on trades and technical roles; offer significant employment and business opportunities, as well as infrastructure improvements; strengthen provincial supply chains for critical minerals; and support Québec and Canada's strategic priorities for responsible resource development.

Falco president and CEO Luc Lessard says KPMG’s analysis demonstrates the scale of Horne 5’s potential economic contribution to Québec, and particularly Abitibi-Témiscamingue.

"With an estimated $8.8-billion contribution to the Québec GDP, more than 22 800 direct and indirect jobs in person-years and about $5.1-billion in municipal, provincial and federal tax revenues over the project’s life, Horne 5 has the potential to generate substantial and lasting economic benefits. Importantly, KPMG estimates that 82% of the value added generated in Québec would accrue to Abitibi-Témiscamingue, reinforcing the project’s significance to the region," he concludes.

Horne 5 is poised to produce 200 000 oz/y of gold over its 15-year lifetime, with production expected from 2031.