- Horizon has commenced third toll milling campaign, comprising processing of ~45,000t from the Crown Jewel and Regal West trial pits with expected grades of 1.6 – 2.0g/t Au.
- First gold has been poured from the Crown Jewel trial pit.
- The Company anticipates $6.6m in revenue at $2,550 per ounce, with the estimated production of 2,100oz – 2,600oz at 92% gold recovery from the campaign.
- Mining and site production costs were fully expensed during the September quarter, the Company is anticipating strong net cash flow from the final two milling campaigns.
Australian gold-focused explorer and developer, Horizon Minerals Limited (ASX: HRZ) is looking forward to a healthy stream of revenue as it has once again kickstarted the gold production. The Company has commenced the first gold production from the third toll milling campaign from the trial mining at the Boorara Gold Mine, which lies 10 kilometres east of Kalgoorlie-Boulder in the WA’s goldfields.
The third back to back milling campaign follows the previous successful endeavours, with the initial two milling campaigns generating the revenue of $2.3 million and $4.9 million, respectively. Meanwhile, it also lays the groundwork for the Company’s initial 4-5-year mine plan, underpinning a long-term and high margin continuous gold production.
Overview of the Third Milling Campaign
Horizon undertook the third back to back milling campaign, which comprised of processing around 45,000 tonnes from the Crown Jewel and Regal West trial pits, which have expected grades of 1.6 – 2.0g/t Au.
The Company anticipates the production of 2,100oz – 2,600oz at the gold recovery of 92%. It would generate revenue between $5.3m – $6.6m at the current gold price of $2,550 per ounce.
Completion of toll milling followed by the mine to mill reconciliations would enable the compilation of an updated Mineral Resource Estimate (MRE) for Boorara in the March Quarter 2021.
Source: HRZ ASX Update, 16 November 2020
The updated Estimate will allow an updated mine optimisation as well as design to be completed for compiling a maiden ore reserve for Boorara, which is expected in the June Quarter 2021 as part of the initial mine development plan and consolidated Feasibility Study.
A Glimpse at Horizon’s Financial Strength with the Developments
Horizon Minerals is sitting on a sweet spot with current cash at bank of $15 million and listed investments totalling $5 million.
The Company’s all mining and site costs are fully expensed earlier, and it has completed mining six weeks prior to the schedule.
Remaining production costs consist of expenditures related to only haulage and toll milling. The Company will complete a full production and cost reconciliation after it completes the final milling campaign in January 2021.
The focus of the Recent Undertakings at Boorara
The trial mining and toll milling from Boorara is targeted at verifying the tonnage and grade uplift potential vis-à-vis the global resource model. The results have demonstrated this potential to date, which would inform an updated MRE and a maiden Ore Reserve as part of the consolidated Feasibility Study before a development decision which will include the construction of a standalone processing facility based at Boorara.
Moreover, toll milling has delivered valuable metallurgical information on varying aspects such as gravity recovery, overall recovery, reagent consumption and optimal mill set up parameters ahead of potential significant capital investment for the Company’s own mill.
Horizon Minerals appears to be on track with recent trial mining and milling campaigns. At the same time, it carries out significant progress at the other satellite projects, together with clearing the pathway to greater plans ahead.
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