Horizon Minerals Making Robust Milling Progress at Boorara Gold Project

Summary

• Boorara’s first ore processing is underway, with mining and ore haulage remaining well ahead of schedule as the total material movement to date is 357,000 BCM (30% above the plan)
• First milling campaign at the Lakewood Mill commences, with gold production anticipated next week and regular campaigns scheduled through to January 2021.
• The company plans on capitalising the strong current gold price for cash generation, which would aid in carrying the drilling at its other projects.
• Boorara Stage One development plan would offer mine to mill reconciliation outcomes, assisting to de-risk the more substantial scale development plan.

Exhibiting buoyant potential in its unparalleled gold exploration journey, Horizon Minerals Limited (ASX:HRZ) appears to move steadfastly concerning the first stage of the Boorara Gold Mine, stationed in the Western Australian goldfields, 10 kilometres east of Kalgoorlie Boulder. The company reported that the first ore processing at Boorara gold mine is ongoing. Notably, the mining at Boorara commenced on 6 May 2020, which was shortly followed by the first ore mining from the Regal East pit.

ALSO READ: Horizon Minerals’ Dazzling June Quarter Report Card Zooming Strong Exploration Momentum

Post the significant update, HRZ stock traded at $0.140, edging up by 3.7 per cent on 17 July 2020. The stock noted the price-return of ~85 per cent in the three months. HRZ is currently trading at $0.145, up by 3.571% on 20 July 2020 (AEST:12:04pm).

Commenting on the substantial progress at Boorara, Horizon Managing Director Mr Jon Price expressed his extreme pleasure with the recent advancement. Furthermore, the first milling campaign at Lakewood will now be commencing, which is expected to produce first gold next week and revenue shortly thereafter.

The Stage One development of Boorara would provide capitalisation on the current strong gold price and offers “mine to mill reconciliation outcomes in order to de-risk the larger-scale development plan”.

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Meanwhile, the company noted robust drilling results at its other projects including Rose Hill Gold project and Richmond-Julia Creek Vanadium project. The cash generation via Boorara leveraging strong gold price scenario is expected to assist in carrying forth the drilling programs at other projects

Kalkine Image (Data Source: HRZ Site)

Boorara Mining Progress

The company commenced Boorara mining on 6 May 2020, and the first ore mining from the Regal East Pit occurred shortly thereafter. Horizon Minerals is concurrently mining both the Regal Eat and Regal West pits for enabling efficient cycling mining production as well as drill and blast activities. Meanwhile, it has commenced the Crown Jewel pit mining which provides a further dig location as the Regal pits advance.

By this time, the company has mined a total movement of 357,000 BCM, with around 80,000 tonnes of oxide and transitional ore, which is mined at a fully diluted grade of 1.5g/t Au, aligning with the reserve model estimates for the upper pits areas. The total material movement is pressing well, 30% above the plan.

ALSO READ: Horizon Minerals Advancing well with Boorara Mining and Haulage Ahead of Schedule

From the Boorara’s run of mine pad, ore haulage continues to the Lakewood Mill, which is situated 7 kilometres to Boorara’s East, currently stockpiling 32,000t for processing.

The company at the Lakewood Mill has kickstarted ore processing with the dedicated milling campaign that would treat ~25,000t of ore from the Regal East pit over two weeks facilitating detailed mine to mill grade reconciliations.

Regular monthly ore processing campaigns under the supervision of Horizon metallurgists are scheduled through to January 2021. Horizon Minerals anticipates its first gold production and revenue in coming weeks.

A Glimpse at the Boorara Project Development

The Boorara project development follows the successful completion of positive Feasibility Study (FS) with significant results indicating robust economics.

The first Stage of Boorara encompasses free-milling oxide and transitional material along with grade control drilling. Mining would target three starter pits that include Regal East, Regal West, and Crown Jewel. The company has awarded the mining and haulage contract to Hampton Transport Services Pty Ltd that would be completing the work with the local expertise.

Boorara Stage 1 contains 159,000t grading 1.86g/t Au for 8,700 ounces recovered at All in Costs of A$1,640 – A$1,690 per ounce

Road Ahead for Horizon Minerals

Kalkine Image (Data Source: HRZ ASX Update)

(Note: All currency ($) are in AUD unless stated otherwise)