It's not a horror movie in the classic mold but it certainly creeped me - and, evidently, many others - out to the point where I'd definitely regard it as such. The exact reasons as to why... for me, in a general way, it's just a sense of eerie, not-quite-right uncanniness that permeates beneath the surface of the film. Things feel off by a few inches and, particularly when watching it alone late at night, this sensation builds and builds and builds.
I don't think it's entirely in the eye of us beholders, either. Aside from the overall premise (which I find to be incredibly creepy unto itself), there are moments that, to me, feel very much tweaked to scare the audience. The girls wandering around hanging rock, for example, the intense rumble of the soundtrack, the cavernous passages, not to mention the 'faces' in the rock itself - creepy. Edith's big scream, hell, even that moment towards the end where it's just a series of still frames flitting between various ornaments in Appleyard's office accompanied by that darn rumbling soundtrack again - these, to me, are 'scares' in sufficient quantity to warrant calling the film horror, amongst many other things.
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