C$3.35 billion. That is the after-tax net present value, discounted at 5%, that Falco Resources puts on its Horne 5 gold project in Rouyn-Noranda, Québec, in an updated feasibility study released June 17, 2026. The unlevered after-tax internal rate of return is 28.2%, and the investment pays back in 3.3 years.
The figure that matters most to cash-minded readers: C$6.4 billion in after-tax cash flow over the life of the mine, or an average of C$542.5 million a year. Base-case NPV is up 244% from the company’s 2021 study.
All of it rests on a gold price of US$3,600 an ounce.
What the mine would cost and produce
Horne 5 is planned as an underground operation running 15 years. Falco expects it to turn out an average of 220,300 payable ounces of gold a year. Falco owns 100% of the project, and the study was prepared under National Instrument 43-101, Canada’s disclosure standard for mineral projects.
By the numbers, the cost side looks like this:
- All-in sustaining cost of US$782 an ounce, after credits from copper, zinc and silver sales
- Operating cost of C$61.74 per tonne processed
- Forward capital and pre-production spending of C$1.75 billion, with a 10.9% contingency built in
Falco says the sustaining-cost figure would make Horne 5 a first-quartile, low-cost gold producer worldwide.
Base case versus spot case
The base case assumes silver at US$50.00 an ounce, copper at US$4.80 a pound, zinc at US$1.35 a pound and an exchange rate of C$1.34 to the U.S. dollar.
The spot case uses prices as of May 31, 2026: gold at US$4,500, silver at US$75.00, copper at US$6.40, zinc at US$1.60 and C$1.38 to the dollar. Under those inputs the after-tax NPV climbs to C$5.1 billion, a 53% increase. IRR rises to 37.2% and payback shortens to 2.6 years.
Taxes, jobs and permitting
Over the mine’s life the project would contribute more than C$4.4 billion in taxes and mining duties. Falco counts up to 900 direct jobs at the peak of construction and 500 permanent positions once the mine is running.
On permitting, the company says Québec’s Ministry of the environment has confirmed in writing that its review is progressing well and that solutions have been identified for key environmental issues.
President and CEO Luc Lessard said the study puts Horne 5 “among the most significant undeveloped gold projects in Canada.” He pointed to the by-product credits, highly automated operations and the district’s infrastructure and skilled workforce as supports for the low cost profile. The site sits next to Glencore’s Horne smelter.
Falco plans further optimization studies aimed at lifting cash flow in the early years. Its regional land package covers approximately 60,000 hectares.
