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Rebirth of the Horne Mine - A Company Maker
1. TSXV: FPC | WWW.FALCORES.COM | 1TSXV: FPC | WWW.FALCORES.COM
REDISCOVERING THE ROUYN-NORANDA MINING DISTRICT
REBIRTH OF THE HORNE MINE â A COMPANY MAKER
JANUARY 2016
WHERE 11 M OZS OF GOLD & 2.5 BN LBS OF COPPER WERE MINED HISTORICALLY
2. TSXV: FPC | WWW.FALCORES.COM | 2
Disclaimer
This presentation contains a review of the Companyâs properties in Canada. Viewers are cautioned that the projects are at an early stage of exploration and that estimates and
projections contained herein are based on limited and incomplete data. More work is required before the mineralization on the projects and their economic aspects can be
confidentially modeled. Therefore, the work results and estimates herein may be considered to be generally indicative only of the nature and quality of the projects. No representation
or prediction is intended as to the results of future work, nor can there be any promise that the estimates herein will be confirmed by future exploration or analysis, or that the
projects will otherwise prove to be economic.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the accuracy or adequacy of this presentation, which has been prepared by management. There can
be no assurance that any of the assumptions in the resource estimates will be supported by a Pre-feasibility or Feasibility Study or that any forward looking event will come to pass. The
data is incomplete and considerable additional work will be required to complete further evaluation, including but not limited to drilling, engineering and socio-economic studies and
investment.
This presentation contains information with respect to adjacent or similar mineral properties in respect of which the Company has no interest or rights to explore or mine. Readers are
cautioned that the Company has no interest in or right to acquire any interest in any such properties, and that mineral deposits on adjacent or similar properties are not indicative of
mineral deposits on the Companyâs properties. Past performance is no guarantee of future performance and all investors are urged to consult their investment professionals before
making an investment decision. Investors are further cautioned that past performance is no guarantee of future performance
Forward-Looking Statements
Certain information included in this presentation constitutes forward-looking statements, including any information as to our projects, plans and future performance. All statements,
other than statements of historical fact, are forward-looking statements. The words âexpectâ, âbelieveâ, âanticipateâ, âwillâ, âintendâ, âestimateâ, âforecastâ, âbudgetâ, âscheduleâ and
similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered
reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual
results to differ materially from those projected in the forward-looking statements.
Such factors include, but are not limited to: changes to current estimates of mineral reserves and resources; labour availability; litigation; availability of and increased costs associated
with contractors and exploration equipment; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses and permits; contests
over title to properties; uncertainty with the Companyâs ability to secure capital to execute its business plans; changes in national and local government legislation in Canada; risk of
loss due to sabotage and civil disturbances; risks arising from holding derivative instruments; and business opportunities that may be pursued by the company. Many of these
uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements
made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance.
The company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as
required by applicable law.
Cautionary Note to U.S Investors Concerning Measured, Indicated and Inferred Resources
This presentation uses the terms âmeasured,â âindicatedâ and âinferred resources. We advise investors that while those terms are recognized and required by Canadian regulations,
the United States Securities and Exchange commission does not recognize them. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or
other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral
reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
CAUTIONARY STATEMENT
3. TSXV: FPC | WWW.FALCORES.COM | 3
2.8 MILLION GOLD EQUIVALENT OUNCES
OF INFERRED RESOURCES (43-101)*
ROUYN-NORANDA, QUEBEC
* SEE APRIL 17, 2014 FALCO PRESS RELEASE
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FALCO â A QUALITY CANADIAN GOLD DEVELOPER
INVESTMENT THESIS
ROBUST INITIAL ASSET
IN HORNE 5
DESIRABLE & STRONG
LAND POSITION IN
THE ABITIBI
EXPLORATION TARGETS
TO DRIVE FURTHER
VALUE
GOOD CONSOLIDATION
PROSPECTS
LOW POLITICAL RISK
FLEXIBLE BALANCE
SHEET
EXPERIENCED
MANAGEMENT WITH
TECHNICAL EXPERTISE
STRONG
SHAREHOLDER
BASE
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FALCO â A QUALITY CANADIAN GOLD DEVELOPER
WHY HORNE 5?
STRATEGIC ASSET: LARGE TONNAGE & SCALE, GOOD LOCATION
STRONG RESOURCE GROWTH & FUTURE UPSIDE
EXISTING INFRASTRUCTURE: SHAFT & OPENINGS FOR TAILINGS
CLEAR PERMITTING PROCESS IN QUEBEC
STRONG COMMUNITY ENGAGEMENT & EXISTING MINING CULTURE
GREAT OPPORTUNITY TO DRIVE INNOVATION & EFFICIENCIES
PROVEN, STRONG & EXPERIENCED MINE BUILDERS
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Capital Structure
Shareholder Registry
Osisko Gold Royalties 16.2%
Goodman & Company 7.5%
Raymond James 6.8%
Quebec Funds 5.7%
Pate Capital 3.7%
US Global 2.5%
Commodity Discovery Fund 1.1%
AgaNola AG 0.5%
Insiders (D&O) 3.8%
Shares Outstanding (basic) 109,983,907
Stock Options 9,910,439
Warrants 3,279,514
Shares Outstanding (fully diluted} 123,173,860
Cash (Sept 30, 2015) + FT Raise C$7.1 Million
CORPORATE SUMMARY â MINDFUL OF SHAREHOLDER DILUTION
A NEW DEVELOPMENT VEHICLE IN THE ABITIBI
Share Price Performance
0
400
800
1,200
1,600
2,000
2,400
2,800
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
30-Jun-15 31-Aug-15 31-Oct-15 31-Dec-15
VOLUME(IN000'S)
PRICE(C$)
Closes $3.3mm FT
Financing at $0.32
Closes $1.85mm Financing at $0.40
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LOW POLITICAL RISK â NEW MINES WILL BE BUILT IN QUEBEC
QUEBECâS COMPETITIVE ADVANTAGE
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Larder Lake
13 Moz Au
Kirkland Lake
24 Moz Au
Timmins
71 Moz Au
Rouyn-Noranda
19 Moz Au
Malartic
14 Moz Au
Bousquet
21 Moz Au
Lennox Creek Fault Zone
Porcupine Destor Fault Zone
Cadillac
Fault Zone
ONTARIO
QUEBEC
Rouyn-Noranda
Timiskaming Sediments
Cobalt Plate
Felsic Intrusive
Kap High
Mafic/Ultramafic Volcanics
Geology
Val dâOr
14 Moz Au
Major gold mining camp
ď§ 50 current and former gold and base metal mines in the Rouyn-Noranda camp
ď§ Rouyn-Noranda camp has produced 19 Moz of gold and 2.9 Blbs of copper, but
underexplored for gold
0 25 50 75 100
Kilometres
SOUTHERN ABITIBI GREENSTONE BELT
OVER 100 YEARS OF MINING HISTORY
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Initial production
End of Mining
(2.5 Blbs Cu &
11.5 Moz Au)
Falco acquires
properties
(Sep 2012)
Discovery of
Horne Mine
Digitization & compilation of
Horne historical drill results
(Aug 2013)
NI 43-101 Horne 5
resource estimate
(Mar 2014)
1923 1927 1976 1985 2012 2013 2014
Remnant mining
(102,000 oz Au)
HORNE PROJECT
40 YEARS LATER
âThe year 1923 will long be remembered in Canadian mining lore as the year of the rush to Rouynâ
Leslie Roberts, Noranda
2015 2016
Confirmation
Drilling Program at
Horne 5
New resource update
and initial preliminary
economic assessment
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City of
Rouyn-Noranda
Glencore
Smelter
Horne Mine
Quemont Mine
Falco Surface
Rights
Horne West
Horne project located in an Industrial Park
HORNE PROJECT
LOCATED NORTH OF THE CITY OF ROUYN-NORANDA
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ď§ Inferred resource estimate from
historic drilling
ď Open at depth and along
strike
ď Discovery costs of <$0.25/oz
Au
ď§ 1km strike length; 40-120m thick;
1,700m vertical extent
ď§ En echelon stacked tabular body;
well defined metal zonation
(gold, copper, zinc)
ď§ Extensively developed (1930s to
1960s)
ď 4,386 drill holes at 15m
spacing (305,000m)
ď 40 working levels & 55km of
underground development
HORNE PROJECT
2014 MAIDEN RESOURCE ESTIMATE
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ď§ 17,150m surface drill program
ď 9 holes, 9 wedge holes
ď Metallurgical testing
ď Updated NI 43-101
ď§ Primary objectives of confirmation drilling:
ď Upgrade resource category from Inferred to
Indicated
ď Confirm metallurgical parameters (improve
payability)
ď Confirm historic silver grades of >15 g/t
ď§ Targeted Results
ď Increase tonnes by >30%
ď Increase AuEq to >3.5 Moz
ď§ $3.7M cost;
N S
HORNE PROJECT â COMPLETED IN 2015
CONFIRMATORY DRILL PROGRAM â HORNE 5
2300m
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HORNE PROJECT
HORNE 5 PRELIMINARY ECONOMIC ASSESMENT TEAM
Integrator & Mill Design
ď§ Integrator for PEA Document
ď§ Mill Design
ď§ Economical Model Revision
Geology & Mining Engineering
ď§ 43-101 Resource Report
ď§ Block Model
ď§ Mine Design
ď§ Mine Operation Opex & Capex
Mine Infrastructures
ď§ Headframe and Shaft Design
ď§ UG Ore Handling Design
ď§ UG Electricity
Geotechnics, Hydrogeology
& TMF
ď§ Geotechnical Review & Tests
ď§ Hydro-geology
ď§ Tailings Management Facilities
Environment & Surface
Infrastructures
ď§ Baseline Study and Environmental
Impact
ď§ Legislation (MDDELCC & ACCE)
ď§ Community & Social Impact
ď§ Luc Lessard, Eng.
ď§ Francois Vezina, Eng., MBA, Mine Development â Director, Osisko Mining Group
ď§ Former Mine Manager Osisko and Agnico-Eagle; Technical Services Manager for Agnico-Eagle (LaRonde II, Pinos Altos, Kittilä)
ď§ Christian Laroche, Eng., Processing & Metallurgy â Director, Osisko Mining Group
ď§ Metallurgical engineer with 15 years experience in plant design, engineering, feasibility, construction and commissioning
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HORNE PROJECT
HORNE 5 PEA STATUS & DEADLINES
⢠Resources model â InnovExplo
⢠Mine planning â InnovExplo
⢠Production and development sequence
⢠Opex and Capex cost
⢠Metallurgical process
⢠Surface infrastructures
COMPLETED
⢠Data collection
⢠Trade-off mine access
⢠Mine infrastructures
⢠Rock mechanics recommendation
⢠Stope design â Golder
⢠Infrastructures
IN PROGRESS
⢠Economic analysis (Q2)
⢠Report (Q2)EXPECTED
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HORNE PROJECT
$100M+ OF EXISTING INFRASTRUCTURE
Phase 1: Rehabilitation of Quemont shaft,
Dewatering to allow underground drilling
Phase 3: Switching from shaft to ramp
Phase 2: Deepening of Quemont shaft
to 1.8 km
42% of accessible
resources
51% of accessible
resources
7% of accessible
resources
1.3 km
1.8 km
2 km
Shaft QuĂŠmont 2
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Goldex
(Agnico-Eagle)
Young-Davidson
(AuRico)
LaRonde
(Agnico-Eagle)
Horne 5 **
(Falco)
Resource Grade
(g/t AuEq) 1.8 2.8 5.1 3.4
Mining Method Long hole Transverse long hole
Longitudinal Retreat /
Transverse Open
Stoping
Transverse long hole **
Depth (m) 800 - 1,500 750 - 1,500 2,000-3,000 600 - 2,300
Stope Size 15-38 x 30 x 50 20-25 x 20 x 30 5-25 x 15 x 30 38 x 15 x 15 **
Mining Rate 5,100 tpd 8,000 tpd * 7,200 tpd >10,000 tpd **
Specific Gravity 2.8 2.69 3.3 3.45
Operating Cost/NSR $41/t * $53.50/t * $95/t Under review
Annual Production (koz) 71,000 * 200,000 * 230,000 * Under review
* Projected life-of-mine (LOM)
** Horne 5 tonnes and grades per 43-101 report; balance is conceptual
Horne 5 $80 NSR Cutoff in Maiden 43-101 Resource Estimate Under Review
Source: Company website and filings
COMPARABLE MINE ANALYSIS
HIGH MARGIN POTENTIAL
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Highly Prospective Land in a Top Jurisdiction
ď§ 13 former mines on 740 km2 of Falco properties
ď§ Over 80 years of data archives
ď§ Great land package with several high potential green and
brown field prospects
LAND PACKAGE
DOMINANT POSITION IN ESTABLISHED CAMP
Balmoral 700 km
Lake Shore Gold 182 km
Niogold 125 km
Eastmain Resources 125 km
Eagle Hill 124 km
St. Andrews Goldfields 120 km
Integra Gold 30 km
Falco Resources 740+ km
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Background
Previously Untested
ď§ Cu-Zn-Au property, located 25km northwest of
Rouyn-Noranda
ď§ One of the most significant VMS properties in the
Camp
ďLithogeochemically similar to Horne Complex
rocks
ď§ Falco identified near-surface conductors related to
stratigraphy with the chemical characteristics of
Horne Complex
ď§ Over 2km of laterally extensive exhalative sequence,
akin to VMS systems
ď§ Several Zn-rich anomalies
ďConsistent with lateral placement to VMS
mineralization
Distribution Map of High Probability
âHorne Typeâ Samples
Rimo
Horne Complex
RIVIERE MOUILLEUSE (RIMO)
SIMILAR SIGNATURE TO HORNE
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Potential to increase Mineral Resources in the Horne Complex
ď§ 11 gold targets within the shadow of the old mines
ď§ Identified potential Horne West extension at depth
ď§ Targeting 3 zones initially
HORNE 5 PLUS PROGRAM
ADDITIONAL TARGETS IN THE HORNE COMPLEX
2015
2016
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Horne West
Au g/t
Horne 5
Deposit
Horne
Mine
Possible
Extension
HORNE 5 PLUS PROGRAM
NEAR SURFACE TARGETS â QUEMONT EXTENSIONS
Quemont level plan 200 Âą300m 100m
H5-15-08
H5-15-07
2.7 g/t Au, 13.0 g/t Ag, 0.1% Cu, 1.9 % Zn / 55.5m
4.5 g/t Au, 27.1 g/t Ag, 0.3% Cu, 11.9% Zn / 13.15m
(non continuous â stope)
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Horne West
HORNE 5 PLUS PROGRAM
NEAR SURFACE TARGETS â QUEMONT TARGET AREA
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FALCO â A QUALITY CANADIAN GOLD DEVELOPER
VALUE GAP â WHERE DOES HORNE 5 FIT?
PRE-PRODUCTION ASSETS OVER 5 M OZS & CAPEX BELOW $1BN
Company Country Asset EV Resources EV / Resources CAPEX
(name) (US$mm) (mmoz Au) (US$/oz) (US$mm)
Pretium Canada Brucejack $743 20.1 $37 $747
TMAC Canada Hope Bay $283 5.9 $48 $175
Sabina Canada Back River $92 7.2 $13 $297
Kaminak Gold Canada Coffee $92 4.9 $19 $317
First Mining Finance Canada Springpole $80 8.1 $10 $438
Victoria Canada Eagle $28 6.4 $4 $411
Canadian Average $220 $22
Asanko Gold Ghana Asanko $321 9.4 $34 $295
Carpathian Gold Romania Rovina Valley $264 9.0 $29 $509
Gold Road Australia Yamarna $156 6.1 $26 $286
Continental Gold Colombia Buritica $123 9.0 $14 $390
True Gold Burkina Faso Karma $64 4.5 $14 $132
Belo Sun Brazil Volta Grande $52 6.9 $8 $298
Amara Cote d'Ivoire Yaoure $37 9.4 $4 $447
Midas Gold USA Stibnite $28 6.5 $4 $970
Lydian Armenia Amulsar $28 5.1 $6 $370
Orezone Gold Burkina Faso Bombore $18 5.1 $3 $250
Exeter Chile Caspiche $11 25.3 $0 $279
ROW Average $100 $13
FALCO RESOURCES CANADA HORNE 5 $16 2.8 $6
Note: Companies with market capitalizations below US$10mm or without a CAPEX figure were not included in the analysis
Source: BMO Capital Markets, Company filings, Factset, SNL
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CORPORATE TIMELINE
First Half
of 2017
â˘Full
Feasibility
Study
â˘Construction
Decision
2016
â˘Significant
Infill Drilling
Program
â˘Initiate
dewatering
program
2nd
Quarter
2016
â˘Initial
Preliminary
Economic
Assessment
November
-December
2015
â˘Metallurgy
Results
â˘New 43-101
Resource
Estimate
Summer &
Fall 2015
â˘5,000 meter
program on
RIMO
â˘7,800 meter
program on
Horne 5 plus
â˘Metallurgy
â˘Hydrology
â˘Geotechnical
â˘Environment
â˘Engage with
community
and all
stakeholders
January to
October
2015
â˘17,150
meters
Confirmatory
Drilling
Program
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Sean Roosen, Chairman
ď§ Chairman & CEO of Osisko Royalties
Mario Caron, Lead Director
ď§ Mining executive with over 35 years of experience in
the mining industry
Luc Lessard, President & CEO, Director
ď§ Former COO of Canadian Malartic Partnership
ď§ Former COO and Senior Vice-President of Engineering
& Construction for Osisko Mining
ď§ Former VPt of Engineering & Construction for Iamgold
ď§ Former Executive Director of Engineering &
Construction for Cambior
Helene Cartier, Director
ď§ Former VP Environment and Sustainable
Development at Osisko Mining Corporation
Jim Davidson, Director
ď§ Co-Founder of Falco Resources
ď§ Former CFO of Western Minerals Group
Claude Ferron, Director
ď§ Former COO of Xstrata Copper Canada
Paul Henri-Girard, Director
ď§ Former VP of Canadian Operations at Agnico Eagle
Luc Lessard, President & CEO, Director
Vincent Metcalfe, CFO
ď§ Former mining investment banker
Claude Bernier, Exploration Manager
ď§ Over 40 years of experience on various exploration projects
Claude LĂŠveillĂŠe, Vice-President Community Relations &
Human Resources
ď§ Former Corporate Director, Human Resources/Organizational
Development at Agnico Eagle Mines
SENIOR LEADERSHIP TEAM
Board of Directors Officers
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Head Office
Falco Resources Ltd.
1100, avenue des
Canadiens-de-MontrĂŠal
Bureau 300
MontrĂŠal, QC H3B 2S2
TĂŠl. : +1.514.905.3162
Toll Free : +1.888.915.2009
Courriel : info@falcores.com
Investor Inquiries
Vincent Metcalfe, CFO
Tel: +1.514.905.3162
Email: vmetcalfe@falcores.com
CONTACT US