Falco Resources Ltd. · TSXV:FPC
Falco Resources — Investor Presentation (September 2014)
29 slides from Falco Resources's investor presentation, September 2014
Slide 1: Rediscovering the Rouyn-Noranda Mining District
Rediscovering the Rouyn-Noranda Mining District The Last of the Abitibi Gold Camps Investor Presentation September 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: Outperforming Peers and Gold
CORPORATE SUMMARY Outperforming Peers and Gold Relative Performance Capital Structure 450% $0.90 Shares Outstanding, Basic 73,661,708 400% Stock Options 5,535,000 Warrants 6,945,257 Relative Performance (%) 350% $0.70 Shares Outstanding, Fully Diluted 86,141,965 Share Price (C$) 300% Cash (March 31,
Slide 4: Significant Land Position in Established Camp
FALCO’S LAND PACKAGE Significant Land Position in Established Camp Falco Controls a Large and Highly Prospective Land Package Destor-Porcupine Fault Key Assets: ❶ Horne Complex ❷ Lac Hervé ❸ Noralex ❹ ❹ Rimo Ontario Québec ❻ ❷ ❼ ❸ ❺ Quesabe ❺ LaRonde Mouska ❻ West Ansil ❶ ❼ Duprat Syenite Westwood C
Slide 5: Investment Highlights
CORPORATE SUMMARY Investment Highlights Pure Exposure to Upside from Rouyn-Noranda Land Package • Quebec is a top tier mining jurisdiction Prolific Mining • 100 years of mining history in the region Jurisdiction • Infrastructure, skilled labour and cheap electricity Significant Land • Majority owner
Slide 6: 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 still underexplored for gold Lennox Cr
Slide 7: Large, Long Life Historical Producer
HORNE COMPLEX Large, Long Life Historical Producer • Horne mine operated for over 50 years • Since 1976, focus had been on the Horne smelter • Over 80 years of historical data available • Falco acquired Horne and its other Rouyn-Noranda properties in 2012 from QMX History of Horne Discovery of End o
Slide 8: Multiple Gold Targets in Horne Complex
HORNE MINE COMPLEX Multiple Gold Targets in Horne Complex Horne and Quemont Mines Produced 14 Moz Au + 2.9 Blbs Cu • 11 gold targets within the shadow of the old mines • Identified potential Horne West extension at depth TSXV: FPC | www.falcores.com 8
Slide 9: Large Polymetallic Deposit
HORNE 5 – INITIAL INFERRED RESOURCE Large Polymetallic Deposit Initial Inferred Mineral Resource of 2.8 Moz Au Eq @ 3.41 g/t Cut-off Ore Au Eq Au Cu Zn Contained Contained Contained Contained Resource Estimate (1) (NSR C$) (Mt) (g/t) (g/t) (%) (%) AuEq (Moz) Au (Moz) Cu (Mlbs) Zn (Mlbs) Inferred > 8
Slide 10: Horne is Well Positioned Among Regional Underground Deposits
HORNE 5 – INITIAL INFERRED RESOURCE Large Polymetallic Deposit Horne is Well Positioned Among Regional Underground Deposits Producer Developer Grade 9 14 Opportunity 8 12 to increase 7 Contained AuEq (Moz) contained 10 6 AuEq by Q2 Grade AuEq (g/t) 5 2015 8 4 6 3 4 2 1 2 - 0 Source: Company Reports
Slide 11: Significant Resource Upside Potential
HORNE 5 – EXPLORATION POTENTIAL Significant Resource Upside Potential • Exploration Zone lies below the resource estimate depth of 2,300m • Open at depth and along strike Open Along Strike o Tabular, stratiform body that deposit extends for at least 500m below the current resource depth of 2,300m o
Slide 12: Regional Mines Suggest Potential at Depth
HORNE 5 – EXPLORATION POTENTIAL Regional Mines Suggest Potential at Depth • 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 b
Slide 13: Unlocking Value from Extensive Historical Data
EXPLORATION PLAN Unlocking Value from 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 o Gold <$40/oz during most of the Horne mine life • New exploration technology o Better unde
Slide 14: Significant Land Position in Established Camp
FALCO’S LAND PACKAGE Significant Land Position in Established Camp • Falco is now turning its attention to the rest of its 72,800-hectare land package Destor-Porcupine Fault Key Assets: ❶ Horne Complex ❷ Lac Hervé ❸ Noralex ❹ ❹ Rimo Ontario Québec ❼ ❻ ❷ ❸ ❺ Quesabe ❺ LaRonde Mouska ❻ West Ansil ❶ ❼
Slide 15: Lac Hervé: Large Anomaly Identified
LAC HERVÉ Large Anomaly Identified • 25km northeast of Rouyn- Noranda • Borehole EM survey identified Lac Hervé an off hole anomaly 100-200m Property away o Sizeable conductive body at 400m from surface o Conductivities typical of massive sulphide mineralization • Historical drillhole intersection o
Slide 16: Rivière Mouilleuse (Rimo): Similar Signature as Horne
RIVIÈRE MOUILLEUSE (RIMO) 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 o Lithogeochemically similar to Horne Complex rocks Pre
Slide 17: Flavrian Quesabe: Hosts Historic Quesabe Gold Mine
FLAVRIAN QUESABE Hosts Historic Quesabe Gold Mine Historic Production Grades of more than 10 g/t Au • Straddles fault system host to several deposits and • Near surface flat lying zones may be amenable to bulk showings within a regional geological setting home to 3 mining former gold producers • Zon
Slide 18: Duprat Syenite: Geologically Similar to Upper Beaver
DUPRAT SYENITE 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 40kms southwest • Abundance of regional gold (+/-
Slide 19: Near-Term Value Enhancing Catalysts
UPCOMING MILESTONES Near-Term Value Enhancing Catalysts 2014 2015 Milestone: Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1 Data compilation on near-mine targets Horne 5 Data compilation on balance Composite long view 2 of 6,600 drill holes (looking north) Summer exploration program 3 – Regional Projects 4 Rimo geophysi
Slide 20: Undervalued Relative to Peers
EV / RESOURCE FOR REGIONAL UNDERGROUND PROJECTS Undervalued 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 $0 Harte Gold Integra Gold Y
Slide 21: Strategic Importance of Abitibi Greenstone Belt
REGIONAL GOLD M&A TRANSACTIONS Strategic Importance of Abitibi Greenstone Belt Significant M&A Activity in the Region EV / AuEq Announcement Equity Value Acquiror Target Producer/Developer Resource Date (C$M) (US$/oz) Apr-14 Yamana / Agnico Eagle Osisko Mining Producer $3,493 $125 Dec-13 Primero Min
Slide 22: Appendix
Appendix TSXV: FPC | www.falcores.com 22
Slide 23: Senior Leadership Team
APPENDIX Senior Leadership Team Trent Mell • Extensive international transactional experience (over 100 transactions and $2 billion in financings) BA., B.C.L., LL.B., LL.M., MBA • Various roles with Barrick Gold, AuRico Gold, North American Palladium and Sherritt International President, CEO & Direc
Slide 24: Advisors
APPENDIX Advisors Each advisor is a leader in their field Harold Gibson PhD • Director, Mineral Exploration Research Centre - Laurentian University Technical Advisor • Focus on VMS and Epithermal Systems Howard Poulsen PhD • Structural Geologist - more than 40 years of experience Technical Advisor •
Slide 25: Vast Historical Data and Infrastructure
APPENDIX Vast Historical Data and Infrastructure • Detailed 3D model of Horne 5 mine workings and drill coverage o Extensively developed from the 1930’s to 1960’s Shaft #5 o 55km of underground Shaft #5 Diamond drill development open coverage o 40 working levels o 4,386 drill holes (305,000m) open o
Slide 26: Significant Milestones Completed
APPENDIX Significant Milestones Completed Phase 1 Phase 2 Phase 3 Digitization & Compilation Modelling & Resource Estimate Digitization & Compilation (Completed Q3-2013) (Completed Q1-2014) (Target Completion Q4-2014) • 370 level plans • 3D geological model • Over 6,600 additional drill holes (shown
Slide 27: Resource Summary
APPENDIX Resource Summary Cut-off Au Eq Au Cu Zn Contained Contained Contained Contained Resource Estimate Tonnes (NSR C$) (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 3.07 2.3 0.21 0
Slide 28: Horne Deposit
APPENDIXMAIDEN 43-101 Horne 5 Deposit • There are a number of similarities with Agnico-Eagle’s LaRonde mine, 50Km east of Horne 5 LaRonde Longitudinal Section – 2012 Horne 5 Longitudinal Section 2,000 2,000 metres metres Note: Refer to Appendix for additional resource estimate disclosure TSXV: FPC |
Slide 29: Contact Us
Contact Us Corporate Office: Investor Inquiries: Falco Resources Ltd. Deanna Kress Suite 1328 – 885 W. Georgia St. Corporate Communications Tel: +1.604.336.6346 Vancouver, B.C. V6C 3E8 Email: dkress@falcopacific.com Toll Free: +1.885.238.4671 Email: info@falcopacific.com Dean Linden SVP, Corporate D
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