Falco Resources Eyes High-tech Mining at Horne 5

A Horne 5 operation would generate 236,000 oz. gold annually at all-in sustaining costs of US$427 per oz., net of by-product credits. The US$1,250 per oz. base case features a U$667-million, after-tax net present value at a 5% discount rate, and a 16% internal rate of return.

The mine plan targets 63.8 million tonnes of volcanogenic-massive sulfide material with a diluted grade of 1.6 grams gold per tonne, 15.5 grams silver per tonne, 0.19% copper and 0.85% zinc. The gold equivalent grade is 2.6 grams per tonne for 4.8 million contained equivalent oz.

The company also drilled 10,000 metres to test an area between the western edge of the Horne 5 deposit and the Horne Creek fault, which it hopes can provide more ore early in the mine’s life to delay costs required to access more material at depth. Positive results from hole 16-17A reportedly confirm a good grade and thickness in the western area, including 12.4 metres at 5.14 grams gold equivalent.