Falco Resources
Primary ticker: TSXV:FPC, OTCM:FPR
Stage of development: Development
Primary minerals: Gold, Copper, Zinc, Silver
Project to promote: The Horne 5 Project
Project location: Rouyn-Noranda, Quebec, Canada
Website: falcores.com
Falco is one of the largest mineral claim holders in Québec, with extensive land holdings in the Abitibi Greenstone Belt (+67,000 ha). Falco’s flagship project is the Falco Horne 5 Project located under the former Horne mine that was operated by Noranda from 1927 to 1976 and produced 11.6M oz of gold and 2.5B lbs of copper.
Since 2015, Falco has delineated a reserve of over 6.1M oz AuEq with an additional 3.2M oz AuEq in resource, making it one of the largest gold resources in Québec not controlled by a producer. This Project is a massive sulphide polymetallic deposit (Au, Ag, Cu, Zn) which is supported by a feasibility study (2021). Annual production at this project is estimated at 220,000 oz Au / 330,000 oz AuEq over a 15 LOM. Falco is poised to be a low-cost gold producer, with AISC costs below US$600/oz (net of by-product credits). The Project is near the end of the permitting process.
Cash: CAD 2M
Debt: CAD 36M
Major shareholders:
Osisko Development – 16.7%
Investissement Quebec – 8%
Sprott Asset Management -6%
Management Ownership – 1.2%
Financials
Management Profile
Anthony Glavac – Chief Financial Officer.
Mr. Anthony Glavac has 20 years of experience in financial reporting, including over 14 years in the mining industry.
Prior to joining Falco, he held the positions of Director Financial Reporting and Internal Controls at Dynacor Gold Mines and Interim Chief Financial Officer at Alderon Iron Ore Corp. Mr. Glavac was a Senior Manager at KPMG, working with both public and private companies, providing audit, taxation, strategic advisory and public offering services. Mr. Glavac is also involved with other public companies in the mining industry
What is your rationale for taking part in 121 Mining Investment?
What recent news would you like to highlight to investors attending?
January 2024 – Operating License and Indemnity Agreement concluded between Falco and Glencore
March 2024 – Obtained Environmental Impact Assessment admissibility by the Government
August 2024 – Established Technical and Strategic Committees with Glencore
August 2024 – Start of public hearing process held by the Office of Public Hearings on the Environment (BAPE), which were completed in early October 2024
October 2024 – Extension of Convertible Debts with Osisko Gold and Glencore to 2025
What are your key goals in 3 months, 6 months, 12 months?
3 Months:
Complete documentation filing and responses to the BAPE and to the Ministry of the Environment, the Fight Against Climate Change, Wildlife and Parks (the “Ministry”), in view of the completion of their reports and recommendations. The BAPE report is due for submission to the Ministry by December 26, 2024.
6 Months:
Update the 2021 Feasibility Study will provide a much clearer picture as to the full potential of the proposed Project for all stakeholders.
12 Months:
Project Financing, M&A Activity, receive permits
What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?
What do you think makes your company such a compelling investment?
With over 6.1M oz AuEq and an additional 3.2M oz AuEq in resource, the Horne 5 Project is one of the largest gold resources in Québec not controlled by a producer.
This asset has a real infrastructure advantage
• Significant infrastructure in Rouyn-Noranda, including roads, railways, hydro-electric power distribution system and qualified mining labor expertise & supplier base
• Adjacent to the Project is a copper smelting facility owned by Glencore
• Opportunity to leverage existing infrastructure, including the former Quemont shaft
Near term de-risking elements will provide re-rating potential.
What are the top 3 key investor takeaways?
Falco’s Horne 5 Project is a world class deposit, with meaningful critical minerals (Cu/Zn) exposure, with real infrastructure advantage.