Situated within the Rouyn-Noranda space, Horne 5 lies at a depth of between 600 and a pair of,300 metres, beneath the past-producing Horne mine. To be able to entry the gold-silver-copper-zinc deposit, Falco must rehabilitate an current shaft, owned by Glencore. Glencore owns the mining concession on the property, whereas Falco holds mineral rights beneath 200 metres and floor rights across the shaft.
“The settlement with Glencore is a significant step for Falco,” stated Haywood Securities’ mining analyst Pierre Vaillancourt in a analysis notice. “Assuming the Principal Working License and Indemnity Settlement are finalized in (the third quarter), and progress is made with allowing and early works, Falco can be in place to start out the dewatering course of for Horne 5 by the summer time of 2022.”
The 2 corporations beforehand signed a life-of-mine offtake settlement for copper and zinc concentrates final October, and commenced a C$7.5 million work program in November to mitigate potential dangers to Glencore’s operations from Horne 5. This system, financed largely by a convertible debenture financing supplied by Glencore, contains geotechnical and water administration work in addition to an investigation of synergies between the undertaking and the Horne Smelter.
Falco launched an updated feasibility study for Horne 5 in April outlining a $844.2 million, 15-year mine producing 220,300 oz. of gold yearly.
The undertaking accommodates measured and indicated sources totalling 105.6 million tonnes grading 1.44 g/t gold, 14.32 g/t silver, 0.17% copper and 0.79% zinc (2.25 g/t gold-equivalent), primarily based on a C$55 internet smelter return cutoff. Inferred sources add 24.3 million tonnes grading 1.35 g/t gold, 21.4 g/t silver, 0.19% copper and 0.67% zinc (2.23 g/t gold-equivalent).
(This text first appeared within the Canadian Mining Journal)