- Horizon Minerals’ projects hosting >1.1Moz in resource in the heart of WA goldfields offers strong growth potential for the Company.
- The Company’s strategic objective is involving initial 4-5 years mine plan to underpin long-term and high-margin continuous gold production.
- While the infill drilling at Boorara’s gold mine has confirmed tonnage and grade uplift, the resource extension drilling is planned beyond the current 1.8km of the mineralised strike.
Australian gold-focussed explorer, Horizon Minerals Limited (ASX: HRZ) appears to be climbing high on the exploration ladder on the back of its strategic gold focus, stimulating growth potential for the Company. The recent revenue-churning undertakings at the Company’s flagship Boorara Gold Mine bears testament to the advancing momentum of Horizon towards key milestones.
Notably, Boorara’s first milling campaign from the Regal East trial with its completion has generated revenue worth $2.93 million. A total of 26,340t of ore is processed from the first milling campaign at a fully reconciled feed grade of 1.32g/t Au.
Meanwhile, the strong management team has extensive experience in the development and operation of goldmines in the Goldfield regions appears to steer the Company in the right direction, towards the realisation of significant objectives.
With this backdrop, let us explore Horizon Minerals’ forte catalysing its impressive gold exploration journey
Robust Resource and Growth Potential of the Strategic Landholding
Solid Resource Base
Horizon Minerals’ strategic and quality landholding stretches for over 850 km2 in the heart of Western Australia. The Company’s 100% owned and operated tenure lies in close proximity to all necessary infrastructures and services, with the tenements covering major regional geological structures and all within 75km radius of Boorara.
The Company holds robust yellow metal over 1.1 Moz in resource, open along strike and at depth and 74% in Measured and Indicated Category, offering significant growth potential to Horizon’s exploration activities. The four priority resources include:
- Boorara – 507koz (16.45 mt @ 0.96 g/t Au)
- Binduli (Crake) – 74koz (1.27 mt @ 1.8 g/t Au)
- Rose Hill – 95koz (1.2 mt @ 2.5 g/t Au)
- Teal – 289koz (4.25 mt @ 2.1 g/t Au)
Horizon Minerals enjoys outstanding exploration potential stimulated by significant brownfields and greenfields exploration target, with open cut and underground growth potential hosted by all tenures.
The Company in H2 2020 and 2021 has its eyes set on expanding resource and generating reserves through addition to drill testing several high priority exploration targets. Notably, Horizon Minerals has identified over 15 high priority targets, while the cash flow from mining operation is expected to support exploration activity.
Source: HRZ ASX Update
A Glimpse at Boorara Deposit
The Company’s Boorara Gold Project lying 10km to Kalgoorlie’s east has excellent wide and grade across all three deposits including Royal, Crown Jewel and Regal deposits, with ore, starting at surface. The project enjoys prime locations and in place services while it has Mineral Resource Estimate of 507,000oz Au to provide the baseload feed and mill site.
Notably, trial mining and processing of Royal deposit undertaken in 2016 outperformed resource model and mill reconciled grade was 70% above the global resource grade. Furthermore, Boorara deposit has high-grade NNW striking main dolerite zone along with multiple high-grade flat-lying vein arrays.
Stage 1 trial mining underway, with trialling tonnage and grade uplift potential, eyed to de-risk the larger-scale development and update resource model. Comparing to the global resource model with at-surface ore, in-pit contained ounces are up 114%.
Horizon is targeting free cash flow of ~$7 million cash over a six months mine life from three low capex starter pits producing 8,700oz at a fully diluted grade of 1.86g/t Au. Significantly, toll mining and first gold production have commenced, and the reconciliation results from mining would be fed into the Feasibility study for the larger scale mine development.
Kalkine Image (Data Source: HRZ ASX Update)
Significant Projects Bolstering Exploration Prospects
Rosehill Gold Project
Rosehill Gold project, which is located east of Coolgardie and 45km from Boorara, is situated as part of the NST asset swap. The project hosts a mineral resource of 95koz grading 2.5g/t Au with demonstrated open-pit (over 2.5g/t) and underground (over 5g/t) development potential. Horizon for reserve conversion and extension has planned further RC and DD in H2 2020 and has priority near term production potential for supplementing Boorara and within easy trucking distance.
Binduli Project located west of Kalgoorlie and 20km from Boorara hosts a mineral resource of 74koz grading 1.8g/t Au, and the Company has planned further RC and diamond drilling in H2 2020. Metallurgical testworks results indicated gold recoveries over 95% with a high gravity component. Furthermore, three high priority targets are drill ready at Coote, Darter, and Honeyeater in close proximity
Teal Gold Project
The project stationed 20km to Boorara’s North West host mineral resource of 289,000oz grading 2.1g/t Au, with up to four parallel mineralised structures open along strike and at depth. Cash worth $7 million was generated in 2017-2018 from the successful Stage 1 and Stage 2 mining, which is in line with Study estimates of 22koz grading 3.2g/t Au and 94% recovery.
Meanwhile, the Company is targeting free-milling oxide and transitional open-cut mines at Teal, Jacques Find and Peyes Farm. The project has the potential to offer significant ore feed near the proposed Boorara Mill.
Source: HRZ ASX Update
Notably, HRZ stock last traded on 11 August 2020 at $0.185. The stock has generated a return of 85% in the past six months.
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