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Falco Announces Positive Preliminary Economic Assessment on Horne 5 Gold Project
MONTREAL, QC--(Marketwired - May 09, 2016) - Falco Resources (TSX VENTURE: FPC) Top Quartile Project at All-In Sustaining Costs of US$427/oz Au, net of By-Produ
About this update from Falco Resources Ltd.
[{"type":"text","content":"MONTREAL, QC--(Marketwired - May 09, 2016) - Falco Resources (TSX VENTURE: FPC) Top Quartile Project at All-In Sustaining Costs of US$427/oz Au, net of By-Product Credits All-In Cost (CAPEX plus OPEX) at US$660/oz Au Annual Gold Production of 236,000 Ounces for 12 Years After-Tax IRR of 16.0%; Falco Resources (TSX VENTURE: FPC) (\"Falco\" or the \"Company) is pleased to announce the results of a Preliminary Economic Assessment (\"PEA\") prepared in accordance with National Instrument 43-101 (NI 43-101) for the Company's 100% owned Horne 5 Gold Project (\"Horne 5 Project\") located in Rouyn-Noranda, Québec, Canada. The PEA indicates that the Horne 5 Project represents a robust, high margin, twelve year underground mining project with attractive economics in the current gold price environment. The study was prepared by BBA Inc., under the direction of Mr. Luc Lessard, P. Eng., President and Chief Executive Officer of the Company, and Messrs. Robert Wares, P. Geo., Francois Vezina, P. Eng. and Christian Laroche, P. Eng., Osisko Mining Group's technical team and included contributions from the geological and engineering teams at InnovExplo Inc., Golder Associates Ltd., and WSP Canada Inc. At a gold price of US$1,250/oz and using an exchange rate of C$1.00 = US$0.75, the study shows that the Horne 5 Project would generate an after-tax net present value (\"NPV\") (at a 5% discount rate) of $667 million and an Internal Rate of Return (\"IRR\") of 16.0%. In this scenario, the mine could become the next significant gold producer in Québec, with a production profile averaging 236,000 ounces annually over the life of mine, with an all-in sustaining cash cost of US$427 per ounce net of by-product credits and all-in cost (CAPEX plus OPEX) estimated at US$660 per ounce. Falco intends to move forward and immediately initiate a Feasibility Study on the Horne 5 Project, which is planned to be completed in the first semester of 2017. The Environmental Impact Assessment (\"EIA\") study, which has been initiated by WSP, is expected to be completed in the first semester of 2017. Luc Lessard, Falco President and CEO commented: \"We are very pleased with the results of the new preliminary economic assessment on the Horne 5 deposit, which shows the promise of bringing this world-class deposit back into production after a ...