Construction commenced on the hoist building that will house the auxiliary and service hoists for the Horne 5 Project in December and is expected to be completed during the second quarter of 2018, according to Falcon Resources Ltd. The hoisting system will enable the company to start the mine dewatering and Quemont shaft rehabilitation efforts efficiently and safely. Key auxiliary and service hoisting system components were shipped to the site before the end of 2017, and the company anticipates assembling the two hoists following the completion of the hoist building.

Falco also acquired land, surface rights and strategic buildings near Horne 5. As such, the company acquired specific infrastructure and buildings from third parties, exercised its existing option to acquire land from the city of Rouyn-Noranda, and signed several other agreements. The total purchase price of these acquisitions was $9 million.

Major equipment for the water treatment facility and pumping system were ordered. The water treatment facility components are expected to be received during the first quarter of 2018. The treatment facility and pumping system will have a capacity of 600 cubic meters per hour. The certificate of authorization required for the dewatering is still under review with the Québec government. Other authorizations from a third party are also required to proceed with the dewatering program.

Falco has commenced the detailed engineering and procurement of equipment shop drawings in relation to the Horne 5 Project. The current focus is the water treatment plant, the electrical substation and hoisting facilities. During most of 2018, detailed engineering will focus on the processing and mining sectors. The company intends to have advanced and nearly completed the entire detailed engineering work program ahead of the start of surface construction.

The Horne 5 Project is located in the former Horne mine that was operated by Noranda from 1927 to 1976 and produced 11.6 million ounces of gold and 2.5 billion lb of copper.

“Over the past three years, the Falco team has been extremely active advancing the Horne 5 Project to its current state,” said Luc Lessard, president and CEO, Falco Resources. “In 2018, the team’s efforts will continue to intensify as we strive to replicate the development success of the world-class Canadian Malartic mine, which was discovered, defined, financed, built and put in production, from first drill hole to first gold pour, in a little more than six years, which several members of the Falco team were instrumental in achieving.”

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. The company owns about 67,000 hectares of land in the Rouyn-Noranda mining camp, which represents approximately 70% of the entire camp and includes 13 former gold and base metal mine sites.