Horizon Minerals Advancing well with Boorara Mining and Haulage Ahead of Schedule

Summary

• The first stage of Boorara Gold ore delivery would underpin the consolidated Feasibility Study progress and re-commencing the large-scale resource growth and discovery drilling programs.
• The advanced mining and haulage operations at Boorara align with Horizon’s Gold Production Focus.
• Robust Financials of the Feasibility Study supports gold exploration efforts of Horizon Minerals.

Australian yellow-metal explorer, Horizon Minerals Limited (ASX:HRZ), formed on 9 July 2019 after Intermin Resources Limited got merged with MacPhersons Resources Limited and changed its name, appears to be progressing in the right direction concerning the gold exploration endeavours at the Boorara gold mine. In a significant update, the company highlighted that its Boorara mining and ore haulage remained ahead of schedule.

Notably, Boorara Gold mine is stationed in the heart of the Western Australian goldfields, located 10 kilometres east of Kalgoorlie-Boulder and is wholly owned by Horizon Minerals. The development of the first stage of the Boorara gold mine received Board approval in May 2020 following the completion of the Feasibility Study.

Boorara Stage 1 encompasses free-milling oxide and transitional material with grade control drilling completed in the north (on 4m X 10m) and in the central areas (on 5m X 10m). Three starter pits for the mining includes Regal East, Regal West, and Crown Jewel. The first Stage of Boorara comprises 159,000t grading 1.86g/t Au for 8,700 ounces recovered at All in Costs of A$1,640 – A$1,690 per ounce.

Remarking on the recent advancement, Horizon Managing Director, Mr Jon Price indicated on the excellent job done by the site operations team, and Horizon’s contracting partners who together have ensured ore delivery ahead of schedule while the grade meets the expectations. The company looks forward towards the completion of the first stage of Boorara. Meanwhile, it progresses Feasibility Study and restarts large-scale resource growth and discovery drilling programs.

With this backdrop, let us have a closer look at the Boorara Mining and Haulage Operations undertaken

A Glimpse at Boorara Mining Operations

At Boorara, mining commenced on 6 May 2020 with first ore mining taken soon from the Regal East Pit. For enabling efficient cycling of mining production along with drill and blast activities, both Regal east and west pits will be concurrently mined. To provide an alternative dig location, the company will commence Crown Jewel pit mining in the September Quarter as the Regal pits advance.

A total movement of 232,000 BCM to date has been mined with approximately 42,000 tonnes of oxide and transitional ore. The mined ore is at a fully diluted grade of 1.4g/t Au and is in line with the reserve model estimates for the upper areas of the pits. For reducing drill and blast costs, the company to date has mined a higher than the budgeted volume of free dig material which will also minimise dilution and improve mine productivity.

Lens Through Haulage Progress

From the run of mine pad at Boorara, Ore haulage has now commenced to the Lakewood Mill, which is located 7 kilometres east of Boorara. The first ore treatment campaign is scheduled for 13 July 2020. The dedicated milling campaign over two weeks will treat approximately 25,000t of ore from the Regal East pit enabling a detailed mine to mill grade reconciliations.

The company is completing a detailed pit mapping for improving geological understanding ahead of a global resource review, which would be completed as a component of consolidated Feasibility Study.

Notably, the company is expecting its first gold production and Revenue in July 2020 with the production continuing on a campaign basis through to January 2021.

Stock Information

Post the announcement, HRZ stock closed the day’s trade at $ 0.112 on 23 June 2020, moving upward by ~6.667% from its previous close. The last three-months and year-to-date return of the stock were noted at 94.44% and 28.05%, respectively.

{Curency ($) is stated in AUD unless stated otherwise}