Falco’s Quebec gold-zinc project: updated NPV, capex and IRR explained for mine planners
Reviewed by Tom Sullivan

First reported on MINING.com
30 Second Briefing
Falco Resources’ updated feasibility study for the Horne 5 underground polymetallic project in Rouyn-Noranda lifts post-tax NPV (5% discount) to C$3.35 billion, up 244% from 2021, with initial capex rising to C$1.75 billion and IRR increasing to 28%. The 80.9 million tonnes of proven and probable reserves grade 1.44 g/t gold, 14.1 g/t silver, 0.17% copper and 0.77% zinc, supporting a 15-year mine life producing 3.3 Moz gold, 27.2 Moz silver, 1.1 Blb zinc and 247.3 Mlb copper. Quebec’s Environment Ministry expects to complete its acceptability analysis by autumn 2026, while Glencore holds development rights and an offtake for copper and zinc concentrates tied to its nearby smelter.
Technical Brief
- Updated feasibility assumes long-term prices: US$3,600/oz Au, US$50/oz Ag, US$4.80/lb Cu, US$1.35/lb Zn.
- Proven and probable reserves: 80.9 Mt containing 3.74 Moz Au, 36.7 Moz Ag, 303 Mlb Cu, 1.37 Blb Zn.
- Ore grades average 1.44 g/t Au, 14.1 g/t Ag, 0.17% Cu and 0.77% Zn over the reserve base.
- Glencore holds development rights and a copper/zinc concentrate offtake linked to its nearby smelter.
- Environmental impact assessment was first filed in December 2017, triggering multiple review rounds and public hearings.
- Quebec Environment Ministry’s “acceptability analysis” phase is targeted for completion in autumn 2026.
- Falco’s equity market capitalisation is ~C$205 million versus an initial capex requirement of C$1.75 billion, underscoring a large external financing need.
Our Take
The updated Horne 5 economics lean heavily on elevated silver and copper price assumptions, which aligns with recent coverage of silver market deficits and volatile gold/silver pricing, suggesting Falco Resources is effectively pricing in a structurally tighter precious and base metals market rather than a short-term spike.
With BMO Capital Markets appearing both as adviser in this Horne 5 work and in recent large gold financing deals in our database, Falco’s project is entering a funding environment where lenders are already stress-testing cost inflation impacts on copper and gold projects, which could influence debt sizing and covenants for a C$1.75 billion capex build in Quebec.
The scale of contained zinc and copper at Horne 5 in the Rouyn-Noranda district positions the project as one of the more significant polymetallic developments in our recent Mining project coverage, which may give Glencore added incentive to secure long-term offtake as smelters seek stable feed from politically stable jurisdictions like Quebec.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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