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Falco Resources (TSXV:FPC) announced an updated mineral resource estimate for its wholly-owned Horne 5 gold project located in Rouyn-Noranda, Québec.

Falco Resources (TSXV:FPC) announced an updated mineral resource estimate for its wholly-owned Horne 5 gold project located in Rouyn-Noranda, Québec. Gold equivalent resources have increased significantly as a result of the update. The estimate combines the results of the 2015 surface confirmation drilling program and the historic drilling data collected by Noranda Inc. between 1924 and 1976. The majority of the Noranda drilling was conducted as radiating “fan drilling” on 15m spacing from 40 underground working levels developed throughout the deposit. New Indicated and Inferred Resources have been estimated for the Horne 5 deposit. This new mineral resource estimate contains 5 high grade zones.
As quoted in the press release:

Highlights
At a C$65/tonne net smelter return (“NSR”) cut-off

  • Horne 5 currently hosts an Indicated Resource of 5,361,000 gold equivalent ounces (“oz AuEq”), including 3,418,232 oz Au hosted in 58.3 million tonnes averaging 2.86 g/t AuEq (1.82 g/t Au; 15.60 g/t Ag; 0.20% Cu; 1.00% Zn).
  • Horne 5 also currently hosts an Inferred Resource of 1,254,000 oz AuEq, including 854,534 oz Au hosted in 12.7 million tonnes averaging 3.08 g/t AuEq (2.10 g/t Au; 26.26 g/t Ag; 0.22% Cu; 0.57% Zn.
  • The Indicated Resources represent 81% of the total resources. The recently completed drilling program confirmed Au, Cu and Zn grades in historical drill holes and provided the data to upgrade a large portion of the Inferred Resource into the Indicated category.
  • The significant increase in Indicated Resources together with the increase in global resources provides further confidence in the quality and predictability of Horne 5 as the project moves towards preliminary economic assessment and feasibility study stages.
  • An initial Preliminary Economic Assessment (PEA) using the updated Horne 5 resource has been commenced and is planned to be completed by the end of the second calendar quarter of 2016.
  • Ongoing work on the PEA is focussing on refining the mining method, mining rate and production costs. Ongoing work on rock mechanics (using information from drill core collected during the confirmation drilling program) was used to determine stope dimensions. New parameters from this work in progress were used for the calculation of the cut-off grade of C$65/tonne.
  • The confirmation drilling program results also confirmed silver grades from the historical metallurgical test work done by Noranda, and silver values were included in the mineral resource estimate. The historical metallurgical testing was done on 54 lots from more than 75,000m of core  2 (representing 2,112 drill holes), coming from an area of 920m vertical and 730m horizontal in the Horne 5 deposit.

Falco Resources President and CEO, Luc Lessard, stated:

We are very pleased with the significant increase in resources at our Horne 5 project. In 2015, we conducted a successful drill program and made substantial progress at the project. With the release of today’s updated resource, another milestone has been reached, as we have now outlined a prospective large bulk-tonnage underground resource. Our ongoing PEA and future feasibility work will be directed towards outlining the economic criteria necessary to see the Horne 5 deposit become Canada’s next significant new gold mine.

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