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Summary
- Horizon Minerals has now completed the first milling campaign, which comprises ore from the Regal East trial pit.
- Gold production, which totalled 1,050 ounces has generated $2.93 million in revenue for the Company as the yellow metal attracted an average sale price of $2,791 per ounce.
- Several exploration activities have been planned, targeting the gold focussed exploration along with the achieving significant milestones for other projects.
Australian explorer, Horizon Minerals Limited (ASX:HRZ) appears to be basking in the glory of its advancing developments, which have served up to enhance its exploration prospects. In a significant update, the Company indicated the successful completion of its first Milling Campaign from the Boorara Gold Mine's first stage accompanied by revenue generation of worth $2.93 million.
Significantly, post the critical announcement, HRZ stock edged up by ~13% on 7 August 2020 to end the day at $0.170. HRZ shares have given a three-month return of 87.5%.
The noteworthy achievement comes at a time wherein high prospect for the yellow metal, appears to steer the exploration strategies of the Company. Notably, Black Swan Covid-19 has turned out to be a tipping point for Gold prices as the pandemic induced volatility is fostering a fertile horizon for the bullion market.
ALSO READ: Horizon Minerals Making Robust Milling Progress at Boorara Gold Project
Overarching Achievements Fabricating Robust Potentials
The meaningful progress marks the fruitful advent of another chapter of the exploration at its flagship Boorara Gold Mine, which is situated 10 kilometres east of Kalgoorlie-Boulder in the heart of the Western Australian goldfields.
The first milling campaign, which commenced on 16 July 2020 ran for 12 days to 27 July 2020, and the first gold poured on 23 July 2020. The strategic endeavours have met an excellent milling performance with the average throughput of 95tph, reagent consumption lying within expectations and the gravity recoveries at 40%.
The Company has now completed mill reconciliations with 26,340 dry tonnes being processed at a reconciled mill grade of 1.32g/t Au. The grade aligns with anticipations for the near-surface upper oxide zones of the orebody in the Regal East pit. The ore blocks here are less consistent compared to a higher-grade block, which the Company is currently mining deeper in the Regal East pit.
Overall, gold recoveries with a calculated recovery of 93.8% are above the modelled recoveries of 91.0% and exceed the expectations.
A total of 1,050 fine ounces of gold was produced from the campaign, with all gold sold at an average price of $2,791 per ounce generating revenue of $2.93 million.
ALSO READ: Horizon Minerals’ Dazzling June Quarter Report Card Zooming Strong Exploration Momentum
Road Ahead for Exploration Endeavours
Boorara Gold Mine
Horizon Minerals targeted at providing a further impetus to its exploration results has strategically planned several key undertakings
The next milling campaign is slated to commence in late August. The campaign would comprise of higher-grade ore parcels from the Regal East and Regal West pits. Meanwhile, the ore parcel from the Crown Jewell pit is expected to start in October.
The Company anticipates the faster mining rates achieved in the shallow; oxide zone would witness mining completion five weeks ahead of schedule in September 2020.
As mining advances into the larger and more consistent ore zones, mined grades are anticipated to increase.
Horizon Minerals continues to pursue pit mapping and detailed geological monitoring for enabling an updated resource model and maiden reserve compilation, as part of the consolidated Feasibility Study scheduled to be finalised in H1 2021.
Furthermore, Monthly milling campaigns scheduled through to January 2021 to treat 159,000t of ore with a forecast mined grade of 1.86g/t Au for 8,700 ounces recovered generating $7 million cash at current gold prices
Other key Projects
Kalkine Image (Data source: HRZ ASX Update)
