Glencore recently announced its decision to grant operational rights of the Horne 5 project to Falco Resources, with Glencore retaining priority over the operations. Falco is required to provide financial assurances, guarantees, and indemnification to cover potential risks and losses to the smelter, with Glencore maintaining the right to enforce remediation, suspension, or other risk mitigation measures to protect the Horne smelter.
Falco’s president and CEO, Luc Lessard, expressed optimism about the project’s progress, citing the successful completion of the OLIA and life-of-mine copper-zinc concentrate offtake agreements with Glencore as pivotal factors. The company is now focused on advancing the Horne 5 project through permitting and financing processes.
Located below the historic Horne mine, which operated from 1927 to 1976 and yielded 11.6 million ounces of gold and 2.5 billion pounds of copper, the Horne 5 mine’s environmental impact assessment is currently undergoing review.
According to the 2021 feasibility study, the Horne 5 project boasts proven and probable reserves of 80.9 million tonnes, featuring grades of 0.17% copper, 0.77% zinc, 1.44 grams per tonne (g/t) of gold, and 14.14 g/t of silver.
The measured and indicated resource comprises 105.6 million tonnes of similar grades, containing 389.8 million pounds of copper and 1.85 billion pounds of zinc. Additionally, there is an inferred resource of 24.3 million tonnes, with grades of 0.19% copper, 0.67% zinc, 1.35 g/t gold, and 21.40 g/t silver.
The project’s net present value, with a 5% discount, is estimated at $1.25 billion after taxes, with an internal rate of return of 27.3% and an anticipated payback period of 3.5 years.
