Horne 5 Gold Project Feasibility Study: C$3.35B NPV, 28.2% IRR
Falco Resources Ltd.'s Horne 5 Gold Project in Québec, Canada 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.
Falco Resources Ltd.'s Horne 5 Gold Project has reported Feasibility Study results for the gold project in Québec, Canada. 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, with life-of-mine sustaining capital of C$979M. 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 USD3,600/oz, Silver USD50.00/oz, Copper USD4.80/lb, Zinc USD1.35/lb; exchange rate 1.34 CAD:USD.
Production and mine plan. The project envisions an underground operation. Average annual production is approximately 220297 oz Au. Average head grade is 1.44 g/t Au (average diluted gold grade).
Resources and ownership. Royalties and streams: 2% NSR; 2019 OGR Silver Stream Agreement; 2020 Glencore Concentrate Offtake agreements.
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.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 8.4 Mt | 1.41 g/t Au, 15.75 g/t Ag, 0.17% Cu, 0.75% Zn | — |
| Probable | 72.5 Mt | 1.44 g/t Au, 13.98 g/t Ag, 0.17% Cu, 0.78% Zn | — |
| Proven & Probable | 80.9 Mt | 1.44 g/t Au, 14.14 g/t Ag, 0.17% Cu, 0.77% Zn | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 13.049 Mt | 1.30 g/t Au, 14.64 g/t Ag, 0.15% Cu, 0.65% Zn | 0.754 Moz AuEq, 0.547 Moz Au, 6.143 Moz Ag, 44.175 Mlb Cu, 186.654 Mlb Zn |
| Indicated | 109.403 Mt | 1.33 g/t Au, 13.27 g/t Ag, 0.15% Cu, 0.70% Zn | 6.383 Moz AuEq, 4.669 Moz Au, 46.678 Moz Ag, 363.522 Mlb Cu, 1,693.832 Mlb Zn |
| Measured & Indicated | 122.452 Mt | 1.32 g/t Au, 13.42 g/t Ag, 0.15% Cu, 0.70% Zn | 7.137 Moz AuEq, 5.216 Moz Au, 52.822 Moz Ag, 407.697 Mlb Cu, 1,880.486 Mlb Zn |
| Inferred | 30.071 Mt | 1.23 g/t Au, 17.17 g/t Ag, 0.17% Cu, 0.55% Zn | 1.681 Moz AuEq, 1.189 Moz Au, 16.601 Moz Ag, 110.218 Mlb Cu, 363.640 Mlb Zn |
Our Analysis
The 28.2% after-tax IRR sits in the lower half of our 96-project gold peer group, but it clears the practical financing hurdle for a single-asset developer by a wide margin. The 5% discount rate used to derive the C$3.35B NPV is at the low end of reporting convention, which inflates the headline figure; a more typical rate would compress that value meaningfully. The NPV-to-market-cap ratio of roughly 21.5x is a two-sided signal: it could indicate the market has not yet priced in the project's potential, or it may reflect skepticism about the financing path, given that initial capex of C$1.75B equals 52% of NPV and represents a substantial funding requirement relative to the current equity base.
The study's gold price assumption of USD3,600/oz sits below today's live spot of $4,029.20/oz, suggesting near-term upside to the base-case returns if prices hold. The Québec jurisdiction is a positive quality signal, reducing political and permitting risk versus many peers. The single most important watch-item is the funding gap: with capex at over half the NPV and the market cap a fraction of that, equity dilution or debt terms will be critical to value realization.
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.