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Horizon Minerals shares soar upon Penny’s Find gold project Acquisition

Source:HRZ website

Summary

  • Horizon Minerals has acquired 50% interest in the Penny’s Find gold project.
  • $1.5 million in cash has been paid to Orminex Limited.
  • RC and diamond drilling have been completed.
  • Results from the drilling are expected in the June Quarter 2021 with more in store for the September Quarter.

Emerging gold producer Horizon Minerals Limited (ASX:HRZ) saw its stock trade up by 9.99 per cent at $ 0.11, mid-day on 22 March 2021. The positive momentum seemingly built after the Western Australian company announced the completion of the much-awaited Penny’s Find gold project acquisition.

ALSO READ: Horizon Minerals’ (ASX:HRZ) Half-Year Results Portray Rainbow of Hope for its Gold Exploration

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Penny’s Find gold project acquisition

Horizon Minerals has agreed to acquire 50 per cent interest in the project from Orminex Limited (ASX:ONX). The total consideration amount is $ 1.5 million (payable in cash and funded from the existing cash reserves).

As per the deal, the Company will fund the initial $ 1 million in pre-development expenditure with the joint venture partners funding the project on a 50:50 basis afterwards. Notably, funding of pre-development advancement has commenced.

Managing Director Jon Price opines that Penny’s Find is a “quality high-grade gold project.”

DON’T MISS: A Bird’s Eye View on Horizon Minerals’s (ASX: HRZ) Code to Success

Recent developments

Considerable work has already been complete, allowing a faster pathway to production. In February 2021, Orminex Chief Operating Officer, Mr Matt Nixon, steered an encouraging site inspection with Horizon Chief Operating Officer, Mr Grant Haywood. Subsequently, planning for a rapid pathway to project commencement immediately advanced.

Approvals and toll milling agreement remain in place for the first phase of development. On the development front, Horizon Minerals notified that-

  • All pre-required conditions precedent including all mining information, provision of signed transfers, as well as statutory consents have been completed.
  • The payment has been made to Orminex Limited.
  • RC and diamond drilling have been completed, to infill areas for improved JORC Classification and enable an updated Mineral Resource Estimate (to be compiled ahead of an updated mine optimisation and design).

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Statutory approvals remain in place for the project. A toll milling agreement has also been executed for ore processing in 2021.

RELATED READ: Horizon Minerals (ASX: HRZ) Set to Acquire 50% Interest in Penn’s Find Gold Project

Way forward

In the June Quarter 2021, drilling results are expected. In the September Quarter 2021, an updated resource, maiden reserve, and development decision are expected.

Horizon Minerals looks forward to working with the Orminex team, says Mr Jon Price.

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

Penny’s Find gold project: an Overview

Penny’s Find gold project is in the Western Australian goldfields. The asset is 50 km northeast of Kalgoorlie on a granted mining lease.

It presents a high-grade, underground mining and toll treatment chance with near term cash flow potential and longer-term exploration upside.

The project has a current JORC 2012 Mineral Resource Estimate of 248,000t at 7.04g/t Au for 56,000 ounces with 147,000t at 8.06g/t Au in the Indicated Category.

Penny’s Find location, Horizon’s Project resources and surrounding infrastructure (Source: Company announcement, Nov 2020)


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