Horne 5 Feasibility Study: C$3.35B NPV, 28.2% IRR
Falco Resources Ltd.'s Horne 5 in Canada, Quebec (Rouyn-Noranda) has a Feasibility Study outlining an after-tax NPV of C$3.35B, an after-tax IRR of 28.2%, and initial capital of C$1.75B. The mine plan runs 15 years at about 220300 oz Au payable per year.
Falco Resources Ltd.'s Horne 5 has reported Feasibility Study results for the gold project in Canada, Quebec (Rouyn-Noranda). The study headlines an after-tax net present value of C$3.35B at a 5% discount rate. It reflects Falco Resources Ltd.'s (FPC.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$3.35B using a 5% discount rate. After-tax IRR is 28.2%. Initial capital expenditure is estimated at C$1.75B. The study models a payback period of 3.3 years. All-in sustaining costs are pegged at 782 USD/oz. Economics are based on Gold $3,600/oz, Silver $50.00/oz, Copper $4.80/lb, Zinc $1.35/lb, FX 1.34 CAD/USD (base case).
Production and mine plan. The project envisions an underground operation. Life of mine is 15 years. Average annual production is approximately 220300 oz Au payable.
Resources and ownership. Mineral reserves: P&P: 80.9 Mt at 1.44 g/t Au, 14.1 g/t Ag, 0.17% Cu, 0.77% Zn. Mineral resources: M&I: 122.452 Mt at 1.81 g/t Au Eq; Inferred: 30.071 Mt at 1.74 g/t Au Eq.
These figures are extracted from Falco Resources Ltd.'s technical disclosures and reflect the most recent Feasibility Study on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Our Analysis
- IRR after-tax
- 28.2%
higher than 26% of 90 projects we track
- NPV after-tax
- C$3.35B
- Initial capex
- C$1.75B
52% of NPV
- Payback
- 3.3yrs
- Mine life
- 15yrs
- Discount rate
- 5%
- Study price assumption
- Gold $3,600/oz, Silver $50.00/oz, Copper $4.80/lb, Zinc $1.35/lb, FX 1.34 CAD/USD (base case)
- Spot gold today
- $4,193.80/oz
Our Analysis: A 28.2% after-tax IRR lands in the lower half of the 90 gold projects we track, but it clears the practical financing hurdle for a developer. For a single-asset junior, the 20%+ threshold for higher-risk peers is a more relevant bar, and this project sits comfortably above it. The 5% discount rate is a tell: it flatters the C$3.35B NPV, as the low end of the reporting convention inflates headline value. The NPV-to-market-cap gap of ~16x cuts both ways—it could signal the market hasn't priced the asset, or that skepticism on permitting, jurisdiction, or financing is warranted.
Capital intensity is moderate at 52% of NPV, but the C$1.75B initial capex relative to a small market cap means material dilution risk. The study's gold price assumption of $3,600/oz sits well below the live spot of $4,193.80/oz, suggesting returns could be conservative on price alone. The single most important risk is funding: a junior with this capex burden will likely need to dilute heavily or secure a partner, and any permitting delays could compound that pressure.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.