- Horizon Minerals successfully accomplished range of developments at its solid project portfolio.
- The Company is advancing 50,000 metres extensive resource growth and discovery drilling to organically expand its gold production pipeline.
- The extensive gold resource base and further encouraging discovery potential is catalysing Horizon’s undertakings.
Australia’s emerging mid-tier explorer and developer of the yellow metal, Horizon Minerals Limited (ASX: HRZ) is advancing exceptionally well, backed by its highly strategic projects stretched over an area of over 890 square kilometres and present in the heart of the West Australian goldfield.
The entire 2020 has been a typical illustration of Horizon’s advancing journey with significant number of developments transpiring across its project portfolio. It ranged from successful completion of gold milling campaigns to undertaking an extensive drilling program to enhance the resource inventory. It is worth noting that despite the different stages of development, Horizon has managed to effectively steer its exploration initiatives.
With this backdrop, let us explore, what is the secret sauce of Horizon’s glittering achievements.
Strategic Objective with Solid Plan
The Company’s strategic objective aimed at growing a sustainable and profitable business having an initial five-year mine plan which would underpin the high-margin gold production on a continuous and long-term basis. The plan is based on Boorara-based standalone processing solution, which would receive baseload feed from Boorara deposit while the high-grade satellite deposits would supply the supplementary feed.
The Company has a clear pathway to production with a growing 1.1Moz gold resource which would boost a standalone development.
Meanwhile, to accomplish the plan, the company is focussed on undertaking a range of developments that would facilitate smooth gold production. Significant milestones for the Company include:
- Rapidly progress priority resources to mine ready reserves
- Aggressive exploration for resource growth and new discoveries in CY1
- Complete Feasibility Study in CY21
- Targeting gold production in CY22
Baseload Deposit with Strong Growth Potential
Boorara is stationed 10 kilometres east of Kalgoorlie and has Mineral Resource Estimate of 507,000oz gold across 1.8 kilometres strike. All the three deposits of Boorara boasts encouraging potential with an excellent width and grade along with ore starting at surface
Kalkine Group Image (Data Source: HRZ Investor Presentation, 1 February 2020)
While trial mining has already been completed, toll milling campaign is scheduled to complete at Lakewood in February this year.
Up until now, Horizon has mined 10,560oz at 1.23g/t Au and milled 5,400oz at 1.43g/t Au. Meanwhile, new Boorara resource model will be completed in Q1 CY21 incorporating all the recent data.
The Company has planned an up to 13,000m of drilling in CY21 to explore further multi -million-ounce potential of Boorara gold project area.
High-Grade Satellite Deposit
Rose hill deposit, present within a trucking distance from Boorara exhibits robust quality feed that can be used for centralized processing facility. The Company has planned to update the geological models with maiden Ore Reserves in Q2 CY2021.
Binduli Project Area has demonstrated excellent metallurgical testwork recoveries of over 95% Au with a high gravity component. The Extensional RC and diamond drilling is ongoing at the project area and assays are anticipated in Q1 CY2021.
Teal Camp, located 20km NW of Boorara saw successful mining of Teal Stage 1 and 2 open cut which has generated $7 million cash during 2017- 2018. The Company is currently targeting transitional open cut mines and free milling oxide at Peyes Farm, Teal and Jacques Find.
Source: HRZ Investor Presentation, 1 February 2020
Efforts to Transpire Growth
The Company is advancing an extensive 50,000 metres new discovery and resource drilling program with the focus on organically expanding the production pipeline. Areas with litter modern exploration show substantial potential to augment the Company’s production Pipeline.
The drilling program is aimed at:
- Testing new greenfields targets (29,000m)
- Resource definition drilling for maiden resources (8,500m)
- Extensions to existing resources (8,000m)
- Resource definition drilling (4,500m)
HRZ shares closed at $0.115 on 5 February 2020.
[All currency is in AUD unless otherwise stated]