Falco Announces Agreement to Purchase Mining Fleet for Horne 5 Project

Falco

Falco Resources Ltd. has announced that it has signed an agreement to purchase its mining fleet for the Horne 5 Project located in Rouyn-Noranda, Québec, Canada. The Company selected Sandvik Mining and Rock Technology, Val d’Or, Québec, (“Sandvik”) as its supplier of choice for the mining fleet.

Luc Lessard, President and Chief Executive Officer commented, “The purchase of the mining fleet brings the Horne 5 Project one step closer to production. Through this agreement, we were able to secure favourable pricing and terms and have managed to further derisk the Horne 5 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 having supplied underground mining projects throughout the world will further enhance the execution of the Horne 5 Project.”

From the development phase to the production phase, the Sandvik equipment fleet will incorporate 34 units including LHD’s, trucks and drills. The mining fleet will include the following, five 21 ton scoops, five 17 ton scoops, four 50 ton mine trucks, two additional 50 ton mine trucks for Phase 3, four 2 booms automated jumbos, five bolters, 5 automated production drills, two cable bolters and two wet shotcrete sprayers.

The agreement also includes the supply, start-up and installation of Sandvik’s AutoMine® Loading system. A single loader automation system, which will enable Falco to operate multiple loaders in separate production areas from an individual operator station. The system provides the functionality for the operation and supervision of a semiautomated or fully automated loader. The semi-automated production cycle consists of automated tramming and dumping and teleremote operated bucket loading. An automatic bucket filling assistant will also be included giving the system operator the option to either fill the bucket teleremotely or automatically. The AutoMine® Loading system includes a Access Control System, an operator station and the MineLAN Communication Network.

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 Sandvik equipment fleet can be submitted to Credit Development Agencies.

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