Falco Resources Ltd. (TSX.V: FPC) (“
Falco” or
the “
Corporation”) is pleased to announce
that significant progress has been made on the previously announced
work plan collaboration (“
Work Plan”) with
Glencore Canada Corporation (“
Glencore”). On
October 27, 2020, Falco announced that the Work Plan would include
additional technical work, modelling and studies towards the
further identification, mitigation and allocation of risks at its
flagship Horne 5 Project, located in Rouyn-Noranda, Québec. The
goal of the Work Plan is to allow the two parties to negotiate
towards a Principal Operating License and Indemnity Agreement,
which would allow the commencement of dewatering phase.
Geotechnical Work
Two key Work Plan milestones have been achieved
in relation to the three major components of the established
geotechnical work program.
For the Quemont North area (in proximity to the
future infrastructure of the Horne 5 Project), on December 17th,
Falco’s team completed the planned 14 holes and approximately
1,120m of drilling. The investigation work confirmed our initial
assumptions and the planned mitigation work is underway to secure
the crown pillar and will be completed before the end of the First
Quarter.
A second milestone was also achieved at the end
of January. Falco received the detailed report and analysis on the
potential risk associated with seismicity generated by the Horne 5
Project’s life of mine mining sequence. The study was initiated in
the first quarter of 2020 and included different stages of
numerical modelling. From Falco’s perspective, the results of the
seismicity report were positive and disclosed no reasons to believe
that seismicity risk cannot be mitigated and managed to prevent
impact on smelting operations within the parameters to be defined
in the Principal Operating License and Indemnity Agreement. The
report is currently under review by Glencore and will serve as an
important element for future discussion for the conditions of the
Principal Operating License and Indemnity Agreement.
The investigation work at the Horne Smelter site
for the crown pillar, under dewatering conditions, which began in
mid-December is now well advanced and is expected to be completed
by mid-February. To date 23 holes out of the 25 originally planned
have been completed, leaving only 165m of drilling to complete the
program. Falco’s technical team will be completing the analysis of
the investigation work and will be providing the report and
conclusions to Glencore before the end of February. Discussions
have been initiated with Glencore’s on the development of
mitigation measures to secure the crown pillar for the dewatering
stage of the Horne 5 Project. Falco intends to present a plan to
secure the investigated crown pillars before the end of the First
Quarter of 2021.
Luc Lessard, President and Chief Executive
Officer of Falco noted that, “Cooperation with the Horne Smelter
personnel has been progressing well. They have been very supportive
and have demonstrated an openness to find solutions to organize and
advance the Work Plan. This is not a simple task for an operating
site to complete in the best of times, and it has been complicated
by the implementation of COVID-19 mitigation measures. We are
pleased with the progress made on the Work Plan execution and have
begun the planning of the next steps of our collaboration with
Glencore by assessing potential synergies between our Horne 5
Project and the Horne Smelter. Our objective is to complete the
Work Plan by June 2021 in order to initiate discussions on the
Principal Operating License and Indemnity in Agreement this summer.
With the progress to date we are on track to meet our
timetable.”
Feasibility Study Update
Falco, with the collaboration of a number of
industry-recognized consulting firms, is currently preparing an
updated feasibility study, in accordance with National Instrument
43-101 for the Horne 5 Project. The updated feasibility study,
which is expected to be issued in March 2021, will include project
economic analysis and the schedule for the Horne 5 Project.
Subsequent to the release of the updated
feasibility study, Falco will be working with its financial
advisors and partners to secure the additional financing to fund
the development of the Horne 5 Project.
About Falco
Falco Resources Ltd. is one of the largest
mineral claim holders in the Province of Québec, with extensive
land holdings in the Abitibi Greenstone Belt. Falco owns
approximately 70,000 hectares of land in the Rouyn-Noranda mining
camp, which represents 70% of the entire camp and includes 13
former gold and base metal mine sites. Falco’s principal asset is
the Horne 5 Project located in the former Horne mine that was
operated by Noranda (now Glencore Canada Corporation) from 1927 to
1976 and produced 11.6 million ounces of gold and 2.5 billion
pounds of copper. Osisko Gold Royalties Ltd’s subsidiary, Osisko
Development Corp. is Falco’s largest shareholder owning 18.2%
interest.
For further information, please
contact:
Luc LessardPresident and Chief Executive
Officer514-261-3336info@falcores.com
Jeffrey White, LL.B, MBADirector, Investor Relations
416-274-7762rjwhite@falcores.com
Amélie LalibertéCoordinator, Investor
Relations418-455-4775info@falcores.com
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this press release.
Cautionary Note Regarding
Forward-Looking Statements
This news release contains forward-looking
statements and forward-looking information (together,
“forward-looking statements”) within the meaning of applicable
securities laws. These statements are based on information
currently available to the Corporation and the Corporation provides
no assurance that actual results will meet management’s
expectations. Forward-looking statements include estimates
and statements that describe the Corporation’s future plans,
objectives or goals, including words to the effect that the
Corporation or management expects a stated condition or result to
occur. All statements, other than statements of historical facts,
are forward-looking statements. Generally, forward-looking
statements can be identified by the use of terminology such as
“plans”, “expects’, “estimates”, “intends”, “anticipates”,
“believes” or variations of such words, or statements that certain
actions, events or results “may”, “could”, “would”, “might”, “will
be taken”, “occur” or “be achieved” or other similar words or
expressions.
Forward-looking statements involve risks,
uncertainties and other factors that could cause actual results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially from these forward-looking statements include, without
limitation the ability to (i) complete the Work Plan by June 2021
(ii) initiate discussions to enter into a Principal Operating
License and Indemnity Agreement with Glencore by summer 2021 (iii)
secure the crown pillar by the end of the First Quarter (iv)
commence the dewatering phase within the expected timing (v) to
complete the investigation work at the Horne Smelter site for the
crown pillar under dewatering conditions (vi) complete the second
phase of work of the mitigation measures for securing the crown
pillar for the dewatering stage before the end of the Second
Quarter 2021(vii) issue an updated feasibility study in early March
2021 (viii) meet our timetable (viiii) raise funds on terms
satisfactory to Falco, changes in general economic conditions and
conditions in the financial markets, changes in demand and prices
for minerals, failure to obtain the requisite permits and approvals
from government bodies and third parties, regulatory and
governmental policy changes (laws and policies), operational
difficulties encountered in connection with the activities of the
Corporation as well as those risks set out in Falco’s public
documents, including in each management discussion and analysis
filed on SEDAR at www.sedar.com.
Although Falco believes that the assumptions and
factors used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, Falco disclaims any intention or obligation to
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise.
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