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Horizon Minerals (ASX:HRZ) Revving Up Developments to Monetise High-Grade Gold Deposits

Summary

  • Horizon Minerals is making headway towards long-term and high-margin continuous gold production. 
  • A net cash of A$3.6 million from the toll milling campaign at Boorara. 
  • Horizon is advancing exploration at its recently acquired Penny Find JV (Horizon owns 50% interest)

Horizon Mineral Limited (ASX:HRZ) is on track to achieve its strategic objective, undertaking a wide range of developments at its solid gold project pipeline. The Company is advancing to grow a sustainable and profitable business, with its strategic objective including an initial 5–7-year mine plan, underpinning long-term and high-margin continuous gold production. 

ALSO READ: Horizon Minerals (ASX:HRZ) Going Great Guns with its Regional Consolidation Strategy

The Company’s objective is based on a standalone processing solution at Boorara, with baseload feed provided from Boorara while the Company’s high-grade satellite deposits would supply supplement feed. 

Source: Copyright © 2021 Kalkine Media Pty Ltd, Data Source: HRZ ASX update, dated 4 May 2021

Let us look at how the Company is rapidly progressing priority resources to mine ready reserves at its gold assets to facilitate gold production, targeted in 2022. 

ALSO READ: Horizon Minerals (ASX:HRZ) March Quarter Brimming with Slew of Developments

Boorara Potential Validated

Horizon Minerals concluded trial mining, toll milling as well as pit mapping at Boorara, located 15 kilometres east of Kalgoorlie, for testing the metallurgical performance and the grade uplift potential prior to more extensive scale development. 

Significantly, the Company mined 267kt at 1.23g/t Au for 10,560oz while 138kt at 1.45g/t Au for 6,570oz of ore was toll mined. The program returned excellent ore performance through the mill with 94.5% recovery having a gravity component of over 40% along with very rapid leach response time. 

Significantly, net cash of A$3.6 million was generated, which has dramatically improved confidence to advance.

The Company recently released the updated independent Mineral Resource estimate (MRE) for Boorara, with MRE standing at 11Mt grading 1.26g/t Au for 448,000oz at a 0.5g/t Au lower grade cut-off. The inclusion of the high-grade cross-cutting vein arrays resulted in a 34% increase in resource grade against the previous model. 

READ MORE: Horizon Minerals (ASX:HRZ) in a Solid Position with 34% Gold Grade Uptick at Boorara

Mine optimisation, approvals, design, and economic analysis is currently ongoing for the maiden Ore Reserve generation, slated for the September quarter this year. 

Up to 13,000 metres of drilling is scheduled in 2021, which would test various resource growth and new discovery targets. 

Rose Hill Deposit Boasts High-grade resource

At easy trucking distance from the Boorara mill site, the Company’s Rose Hill deposit hosts an Updated Mineral Resource of 93koz grading 3.65g/t Au consisting of open cut and underground resources. 

The Company is currently assessing an open pit followed by a portal and decline to retrieve the high-grade underground resource. The Company anticipates releasing Ore Reserve in the September Quarter 2021

Binduli Project Area Returns Remarkable Drilling results

The project area located 20 kilometres from Boorara showed excellent metallurgy with 95% test work recovery with a high gravity component. Horizon Minerals wrapped up Extensional RC and diamond drilling, which returned impressive outcomes at Crake and Coote. 

Source: HRZ Investor Presentation, dated 4 May 2021

READ MORE: Horizon Minerals’ (ASX:HRZ) golden run continue at Crake with the latest results

The Company anticipates the release of maiden resource for Coote and updated resource for Crake in the current quarter. 

Mine optimisation, approvals, design, as well as economic analysis is slated for the September Quarter. 

ALSO READ: High-Grade Results from Peyes Farm Add Lustre to Horizon Minerals’ (ASX: HRZ) Gold Portfolio

Teal Gold Camp Exploration Advancing Well

Teal gold camp, situated 20 kilometres northwest of Boorara, was successfully mined Teal open cut, generating cash worth A$7 million in 2018. The Company received excellent drilling results from targeting free-milling oxide and transitional open-cut mines at Teal, Peyes Farm and Jacques Find. 

  Source: HRZ Investor Presentation, dated 4 May 2021

RC and diamond drilling concluded in the project area with updated resource modelling currently ongoing. 

Developments panning out Kalpini Gold Deposit

The project was acquired last year by Horizon, which is currently targeting extensions along strike and at depth as well as infilling some areas for compiling an updated JORC 2012 Mineral Resource. 

Horizon completed the Phase 1 RC and diamond drilling, with results and an updated MRE anticipated in the June Quarter. 

The project boasts potential for both open pit as well as underground development. Notably, the mine optimisation and design for Ore Reserve generation expect completion in the September Quarter of 2021. 

Growth potential along strike and along with the Atlas trend immediately to the east

Development across Other Gold Project Areas

Horizon acquired 50% interest Penny’s Find Joint Venture, where RC and diamond drilling returned excellent result to improve JORC classification. The Company anticipates updated MRE in the current quarter, with Ore Reserve and development decision to take in the subsequent quarter. 

ALSO READ: Horizon Minerals (ASX: HRZ) Buoyed up on Excellent Initial Drilling Results From Penny’s Find

Meanwhile, at the Windanya project area, the first aircore drilling completed testing multiple high priority targets. Assays results for many drill holes are pending, and the Company intend to advance drilling across the new mineralised trend as part of the Company’s 50K exploration drilling program

 

Source: HRZ Investor Presentation, dated 4 May 2021

In early trade, HRZ shares traded at AUD 0.120, on 6 May 2021, up by over 4% from the previous close.

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