Falco Resources Ltd. said Oct. 16 that the feasibility study for its Horne 5 gold project in Quebec estimated the mine's posttax net present value at US$602 million, discounted at 5%, and the internal rate of return at 15.3%, with a payback period of 5.6 years.
The study's base case used price assumptions of US$1,300 per ounce of gold, US$19.50/oz of silver, US$3.00 per pound of copper and US$1.10/lb of zinc, with the project estimated to produce an average of 219,000 payable ounces of gold annually over its 15-year mine life.
Preproduction construction cost is pegged at US$801.7 million, including a US$58.5 million contingency fund and excluding $26.7 million of capital outlays through Aug. 31. Horne 5 is expected to generate gross revenues of US$6.6 billion, with an operating cash flow of US$2.7 billion over its mine life.
Over its mine life, Horne 5 is slated to produce about 3.3 million ounces of payable gold, 26.3 million ounces of payable silver, 229 million pounds of copper and 1.01 billion pounds of payable zinc at an all-in cost of US$643 per payable ounce of gold.
Horne 5's environmental impact assessment study is expected to be completed in the fourth quarter. Process plant commissioning is scheduled in the first half of 2021, with full mine production targeted in the first half of 2022.