Falco Agrees to Purchase Sandvik Mining Fleet

Falco Resources has signed an agreement to purchase the underground mining fleet for its Horne 5 project in Rouyn-Noranda, Québec, from Sandvik Mining and Rock Technology, Val d’Or, Québec. “The purchase of the mining fleet brings the Horne 5 project one step closer to production,” said Falco President and CEO Luc Lessard. “Through this agreement, we were able to secure favorable pricing and terms and have managed to further de-risk the project.

“Sandvik will be providing a complete automation solution that will increase efficiencies during production operations. Its experience, leading-edge technology, and proven track record of supplying underground mining projects throughout the world will further enhance the execution of the Horne 5 project.”

Sandvik equipment will be used in both the development and production phases of the Horne 5 mine. The fleet will include the five 21-ton scoops, five 17-ton scoops, four 50-ton mine trucks (plus two additional 50-ton mine trucks for Phase 3), four two-boom automated jumbos, five bolters, five automated production drills, two cable bolters, and two wet shotcrete sprayers.

The total value of the new equipment fleet and AutoMine is approximately C$60 million. No deposits are required until the initial equipment order is made. Delivery of the fleet is scheduled to start in 2020.

The Horne 5 ore is located immediately below the former Horne mine, which was operated by Noranda from 1927 to 1976 and produced 11.6 million oz of gold and 2.5 billion lb of copper. A recently completed feasibility study provides details for a project that will produce an average of 219,000 ounces per year (oz/y) of gold over a mine life of 15 years. All-in sustaining cash costs are estimated at $399/oz net of byproduct credits for zinc, copper and silver.

Pre-production construction costs for Horne 5 are estimated at $801.7 million. Process plant commissioning is currently scheduled for the first half of 2021, with full mine production planned for the first half of 2022. The deposit is located at depths ranging from 600 m to 2,300 m below surface.

As featured in Womp 2017 Vol 12 - www.womp-int.com