Falco Resources Ltd. · TSXV:FPC
Falco Resources — Investor Presentation (November 2014)
31 slides from Falco Resources's investor presentation, November 2014
Slide 1: Rediscovering the Rouyn-Noranda Mining District
Rediscovering the Rouyn-Noranda Mining District The Last of the Abitibi Gold Camps November, 2014 TSXV: FPC | www.falcores.com 1
Slide 2: Cautionary Statement
CORPORATE SUMMARY Cautionary Statement Disclaimer This presentation contains a review of the Company’s properties in Canada. Viewers are cautioned that the projects are at an early stage of exploration and that estimates and projections contained herein are based on limited and incomplete data. More
Slide 3: Investment Thesis
CORPORATE SUMMARY Investment Thesis District Play – Quebec’s Abitibi Region • Falco controls the last of the large Abitibi Greenstone Belt mining camps • Never before controlled or explored by a major gold producer Targeting 5 Million Ounces – Horne Project • Horne Project has the potential to demon
Slide 4: Prolific Mining Jurisdiction
SOUTHERN ABITIBI GREENSTONE BELT Prolific Mining Jurisdiction Over 100 Years of Mining History in the Region • 50 current and former gold and base metal mines in the Rouyn-Noranda camp • Rouyn-Noranda camp has produced 19 Moz of gold and 2.9 Blbs of copper, but underexplored for gold Lennox Creek Fa
Slide 5: Senior Leadership Team
CORPORATE SUMMARY Senior Leadership Team Trent Mell • Extensive international transactional experience (over 100 deals and $2 billion in financings) BA., B.C.L., LL.B., LL.M., MBA • Previoulsy with precious and base metal producers, including Barrick and AuRico Gold (Young-Davidson) President, CEO &
Slide 6: A New Abitibi Exploration Company
CORPORATE SUMMARY A New Abitibi Exploration Company Relative Performance (12 months) Capital Structure Shares Outstanding (basic) 93,875,857 Stock Options 5,475,000 Falco Share Price 5% Warrants 7,871,438 Shares Outstanding (fully diluted} 107,222,295 Cash (October 20, 2014) C$12,100,000 S&P/TSX Gol
Slide 7: Dominant Position in Established Camp
LAND PACKAGE Dominant Position in Established Camp Highly Prospective Land Package including Horne Complex Destor-Porcupine Fault KM 0 5 10 20 Ontario Québec LaRonde Mouska Westwood Cadillac Fault Horne Mine • 14 former mines on 728 km2 of Falco properties • Over 80 years of data archives TSXV: FPC
Slide 8: 38 Years Later
HORNE COMPLEX 38 Years Later • Horne mine operated for over 50 years • Since 1976, focus had been on the Horne smelter (Glencore) • Falco acquired Horne and its other Rouyn-Noranda properties in 2012 from QMX • Over 80 years of historical data available History of Horne Discovery of End of Mining Fa
Slide 9: Extensive Historical Data
HORNE COMPLEX Extensive Historical Data 80 Years of Data + Technology + Modern Era Gold Price = Rouyn-Noranda Mining District as a Gold Camp • Historic drilling focused on base metals Gold <$40/oz during most of the Horne mine life • Significant advances since 1976 First 3D model of Horne Comple
Slide 10: Maiden Resource Estimate
HORNE COMPLEX Maiden Resource Estimate • Inferred resource estimate from historic drilling Open at depth and along strike • 1,200m strike length; 40-120m thick; 1,700m vertical extent • En echelon stacked tabular body; well defined metal zonation (gold, copper, zinc) • Extensively developed (1930s
Slide 11: Resource Estimate – Upside Opportunities
HORNE COMPLEX Resource Estimate – Upside Opportunities Resource Cut-off Tonnes AuEq Au Cu Zn Contained Contained Contained Contained Class (NSR $C) (Millions) (g/t) (g/t) (%) (%) AuEq (Moz) Au (Moz) Cu (Mlbs) Zn (Mlbs) >50 67.6 2.48 1.8 0.17 0.72 5.4 4.0 261 1,073 >60 50.4 2.75 2.1 0.19 0.73 4.5 3.3
Slide 12: Confirmatory Drill Program
HORNE COMPLEX Confirmatory Drill Program • Drilling program 9-hole oriented drill program Metallurgical work Updated 43-101 • Primary objectives of confirmation drilling: 1. Upgrade resource category from Inferred to Indicated 2. Confirm metallurgical parameters (improve payability parameters)
Slide 13: Additional Targets in Horne Complex
HORNE COMPLEX Additional Targets in Horne Complex Potential to increase Mineral Resources in the Horne Complex • 11 gold targets within the shadow of the old mines • Identified potential Horne West extension at depth TSXV: FPC | www.falcores.com 13
Slide 14: Near Surface Targets
HORNE COMPLEX Near Surface Targets Chadbourne Horne West Gatehouse • Near-surface mineralized zones proximate to Horne mine • Dilled by Noranda but copper values insufficient for follow up • Horne West mineralization believed to extend from surface to 1,500m Au g/t 11 gold targets within the shadow
Slide 15: Significant Resource Upside Potential
HORNE COMPLEX Significant Resource Upside Potential • Exploration Zone lies below the resource estimate At a depth of 2,300m Open Along Strike • Open at depth and along strike Tabular, stratiform body that extends for at least 500m below the current resource estimate LaRonde (Agnico) mineraliz
Slide 16: Horne is Well Positioned Among Regional Underground Deposits
HORNE COMPLEX Large Deposit Horne is Well Positioned Among Regional Underground Deposits Producer Developer Grade 9 14 Opportunity 8 to increase 12 7 contained Contained AuEq (Moz) AuEq by Q2 10 6 2015 Grade AuEq (g/t) 5 8 4 6 3 4 2 1 2 - 0 Source: Company Reports (1) Underground operations only TSX
Slide 17: Horne Mine not Deep
HORNE COMPLEX Horne Mine not Deep • Regional comparables have mined at depths equal to or deeper than Horne 5 Resource Depth of Regional Mine Comparables (Sorted West to East) 0 Reserve/Resource Depth (m) 500 1,000 1,500 2,000 2,500 3,000 Potential resources beyond 2,300m depth 3,500 Source: Company
Slide 18: Regional Exploration
Regional Exploration TSXV: FPC | www.falcores.com 18
Slide 19: Dominant Position in Established Camp
LAND PACKAGE Dominant Position in Established Camp Highly Prospective Land Package including Horne Complex Destor-Porcupine Fault KM 0 5 10 20 Highlights: ❶ Lac Hervé ❷ Rimo ❷ Ontario Québec ❹ ❶ ❸ Quesabe ❹ Duprat Syenite ❸ LaRonde Mouska Westwood Cadillac Fault Horne Mine • 14 former mines on 728 k
Slide 20: Large Anomaly Identified
LAC HERVÉ – VMS Large Anomaly Identified • 15km northeast of Rouyn- Noranda • Historic drillhole with Lac Hervé Property anomalous copper and zinc values and typical VMS-style alteration • Falco borehole EM survey identified an off hole anomaly 400m from surface o Sizeable conductive body typical of
Slide 21: Similar Signature as Horne
RIVIÈRE MOUILLEUSE (RIMO) – VMS Similar Signature as Horne Distribution Map of High Probability Background “Horne Type” Samples • Cu-Zn-Au property, located 25km northwest of Rouyn-Noranda • One of the most significant VMS properties in the Camp Rimo • Lithogeochemically similar to Horne Complex roc
Slide 22: Hosts Historic Quesabe Gold Mine
FLAVRIAN QUESABE – GOLD Hosts Historic Quesabe Gold Mine Historic Production Grades of more than 10 g/t Au • 3 former gold producers • Fault system host to several deposits and showings Zone development absent above 75m & below Opportunity for resource expansion 305m Near surface zones may be
Slide 23: Geophysical character
DUPRAT SYENITE – GOLD Geologically Similar to Upper Beaver Upper Beaver Duprat Syenite • 20km northwest of Rouyn- Noranda Geologic setting • Geologically similar to Upper Beaver gold-copper deposit o Similar magnetic expression to the Upper Beaver, located 35kms southwest • Abundance of regional gol
Slide 24: Unique Opportunity
CORPORATE SUMMARY Unique Opportunity 73,000 Hectares of Land in Rouyn-Noranda Significant • Full ownership over 70% of the Rouyn-Noranda camp Position in Established Camp • 72,800-hectare land package Top Mining • Located in Quebec, Canada – a top tier mining jurisdiction Jurisdiction • Infrastructu
Slide 25: Appendix
Appendix TSXV: FPC | www.falcores.com 25
Slide 26: Located North of the City
HORNE PROJECT Located North of the City Located in an Industrial Park (away from residential area) Quemont Mine Falco Surface Rights Horne West Horne Mine Glencore Smelter City of Rouyn-Noranda TSXV: FPC | www.falcores.com 26
Slide 27: Similarities with LaRonde
HORNE 5 Similarities with LaRonde Similarities with Agnico-Eagle’s LaRonde mine (40 km east of Horne 5) • Gold-rich VMS deposits • Similar geometry • Open at depth • Bulk mining methods Horne 5 Longitudinal Section LaRonde Longitudinal Section – 2012 2,000 2,000 metres metres Note: Refer to Appendix
Slide 28: Valuation Relative to Peers
EV / RESOURCE FOR REGIONAL UNDERGROUND PROJECTS Valuation Relative to Peers $120 Falco trades at a discount to peers despite extensive infrastructure, a known ore body, and significant update potential $100 EV / AuEq Resource (US$ / oz) $80 $60 $40 Median: US$29/oz $20 $0 Harte Gold Integra Gold Yor
Slide 29: Strategic Importance of Abitibi Greenstone Belt
REGIONAL GOLD M&A TRANSACTIONS Strategic Importance of Abitibi Greenstone Belt Significant M&A Activity in the Region EV / AuEq Announcement Equity Value Acquiror Target Producer/Developer Resource Date (C$M) (US$/oz) Apr-14 Yamana / Agnico Eagle Osisko Mining Producer $3,493 $125 Dec-13 Primero Min
Slide 30: Resource Summary
APPENDIX Resource Summary Cut-off Tonnes Au Eq Au Cu Zn Contained Contained Contained Contained Resource Estimate Tonnes (NSR C$) (Mt) (g/t) (g/t) (%) (%) AuEq (Moz) Au (Moz) Cu (Mlbs) Zn (Mlbs) > 50 67.6 2.48 1.8 0.17 0.72 5.4 4.0 261 1,073 > 60 50.4 2.75 2.1 0.19 0.73 4.5 3.3 214 814 > 70 35.9 3.0
Slide 31: Contact Us
Contact Us Corporate Office: Investor Inquiries: Falco Resources Ltd. Deanna Kress Corporate Communications Suite 1328 – 885 W. Georgia St. Tel: +1.604.336.6346 Vancouver, B.C. V6C 3E8 Email: dkress@falcores.com Toll Free: +1.885.238.4671 Dean Linden Email: info@falcores.com SVP, Corporate Developme
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