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Horizon Minerals (ASX:HRZ) soared 5% on Mineral Resource update

Highlights

  • Horizon Minerals updated the Mineral Resource Estimate of the project, and now more than 55% of the ounces fall under the Indicated Resource category.
  • The metallurgical test work has resulted in encouraging gold recoveries up to 89.4% and 69.9% for the Jacques Find – Peyes Farm oxide-transitional composites respectively.
  • HRZ wrapped up its 100-hole infill drilling campaign on the Jacques Find – Peyes Farm gold project with significant gold intercept results.
  • Maiden Ore Reserve is being targeted by the December 2021 quarter.

The emerging mid-tier gold producer Horizon Minerals Limited (ASX:HRZ) is going from strength to strength to unlock the values at the Jacques Find-Peyes Farm gold project. The project is part of the Teal project area located in Kalgoorlie in WA. The Company has updated the Mineral Resource Estimate (MRE)to 1.74Mt @ 2.32g/t Au for 130,000oz with a cut-off grade of 0.8g/t Au.

Related Read: Horizon Minerals in high spirits as Richmond-Julia project advances to DFS

The drilling campaign undertaken during the December quarter last year and during the March quarter of 2021 had been incorporated in the geological model and aided in current MRE of the project. The drilling campaign involved 94 RC holes and six diamond holes for a combined depth of 8,291m drilled.

Horizon Minerals, HRZ, Jacques Find-Peyes Farm gold project, Teal Gold Project

Project area location and surrounding infrastructure (Image source: Company update, 15 September 2021)

Mr Jon Price, Managing Director of Horizon Minerals, has congratulated the exploration team on the excellent job of unraveling additional resources within the Teal gold camp after the successful completion of Teal gold mine in 2018.

“We now look forward to completing mine optimisation and design studies for Ore Reserve generation in the December Quarter 2021 as part of the consolidated Feasibility Study,” Mr Price added further.

Related read: Horizon Minerals (ASX: HRZ) strike high-grade gold at Kestrel, reinforces new discovery potential

Jacques Find – Peyes Farm project overview

Jacques Find – Peyes Farm are advanced to complement the Boorara Gold Project. The exploration activities are part of the consolidated Feasibility Study (FS) to deliver a minimum of 5-year initial mine plan. Jacques Find – Peyes Farm's gold deposit comprises a well-defined supergene blanket located above shears and quartz.

Jacques Find – Peyes Farm's gold deposit comprises a well-defined supergene blanket located above shears and quartz.

The drilling campaign of 2020/2021 updated the MRE

During December 2020 and March 2021, the drilling operations contributed significantly towards the resource update of Jacques Find – Peyes Farm project. A total of 100 holes, of which 94 were RC and six were diamond holes, were drilled on the project area.

Horizon improved the drill density on the project with more uniform 10m spacing allowing improved definition of ore zones.

Horizon Minerals, HRZ, Jacques Find-Peyes Farm gold project, Teal Gold Project

Drilling result on Jacques Find- Peyes Farm Project (Image source: Company update, 15 September 2021)

Related read: Horizon Minerals (ASX: HRZ) buoyed on growth potential within the greater Boorara project area

The drilling data from the campaign was compiled and analysed to generate the Mineral Resource Estimate (MRE) for the project. The 2012 JORC compliant MRE for Jacques Find – Peyes Farm was delineated as 1.74Mt @ 2.32g/t Au for 130,000 ounces for a lower grade cut-off of 0.8g/t.

Resource breakdown of Jacques Find –Peyes Farm Project at cut-off grade of 0.8g/t (Data source: Company update, 15 September 2021)

Way forward

  • Horizon will use update MRE for open pit mine optimisation, design and economic analysis for generation of maiden Ore Reserve by December 2021.
  • Further drilling operation is planned outside the current resource envelope in 2021 to test the supergene strike extensions of the mineralisation.
  • Horizon is also planning drilling at Teal Project to test strike and dip extensions from the historic Teal open-cut mine.

Related read: Encouraging results at Kalpini expedites Horizon Minerals (ASX:HRZ) gold run

Share price

The shares of HRZ soared 4.5% today, and trading at AU$0.115. The Company has a market cap of AU$62.47 million as of 15 September 2021.

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