By Cory Falco Resources Announces Positive Feasibility Study Results on Horne 5 Gold Project
Below is the news out of Falco this morning and the summary of the Feasibility study. Overall the numbers are encouraging. I like to look at the tables outlining the sensitivity to gold prices and currency moves. The Horne 5 project would still be profitable at $1,100 gold albeit less so than at the base case used in the study of $1,300.
Please let me know what catches your eye and if there are any questions you have for Vincent when I have him back on the show.
Click here to visit the Falco website for more information.
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-Top Quartile Project at All-In Sustaining Costs of US$399/oz Au,
net of By-Product Credits
-All-In Cost (CAPEX plus OPEX) at US$643/oz Au
-Annual Payable Gold Production of 219,000 Ounces for 15 Years
-After-Tax IRR of 15.3%
Falco Resources (TSX VENTURE: FPC) (“Falco” or the “Company”) is pleased to announce the results of a feasibility study (the “Feasibility Study” ) prepared in accordance with National Instrument 43-101 (“NI 43-101”) for the Company’s Horne 5 Gold Project (“Horne 5 Project” or the “Project”) located in Rouyn-Noranda, Québec, Canada. Unless otherwise stated, all dollar amounts are quoted in U.S. dollars (“$”)*.
The Feasibility Study indicates that the Horne 5 Project represents a robust, high margin, fifteen year underground mining project with attractive economics in the current gold price environment. The Feasibility Study was prepared by BBA Inc., under the direction of Mr. Luc Lessard, P. Eng., President and Chief Executive Officer of the Company, and its Vice-Presidents Messrs. Francois Vezina, P. Eng., Christian Laroche, P. Eng., and Mrs. Hélène Cartier, P. Eng. LLB, the Osisko Gold Royalties technical team, and included contributions from the geological and engineering teams at BBA Inc., InnovExplo Inc., Golder Associates Ltd., WSP Canada Inc., SNC-Lavalin Stavibel Inc., and Ingénierie RIVVAL Inc. At a gold price of $1,300/oz and using an exchange rate of C$1.00 = US$0.78, the Feasibility Study shows that the Horne 5 Project would generate an after-tax net present value (“NPV”), at a 5% discount rate, of $602 million and an internal rate of return (“IRR”) of 15.3% after-tax. In this scenario, the mine could become the next significant gold producer in Québec, with a production profile averaging 219,000 payable ounces annually over the life of mine, with an all-in sustaining cash cost of $399 per ounce net of by-product credits and all-in cost, CAPEX plus OPEX, estimated at $643 per ounce. The Environmental Impact Assessment (“EIA”) study, which has been initiated by WSP Canada Inc., is expected to be completed in the fourth quarter of 2017.
Mr. Luc Lessard, Falco’s President and Chief Executive Officer commented: “We are very pleased with the results of the Feasibility Study on the Horne 5 Project, which demonstrates the robust economics of bringing this world-class deposit back into production. The Feasibility Study firmly establishes the Horne 5 Project as one of the best undeveloped gold projects by value and margin in today’s gold-price environment. The Feasibility Study envisions a state-of-the-art operation with a high level of automation. The Horne 5 Project benefits from being situated in one of the world’s best mining jurisdictions, where a high level of underground mining …read more
Source:: The Korelin Economics Report
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