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Summary
- Boorara Gold Mine saw its first gold poured on 23 July following the first milling campaign which initiated a week prior.
- The first stage of mine development is focused on cash generation with the gold price rallying in the current Australian scenario.
- The Company has shipped Dore bullion to the Perth Mint for the purpose of refining and sale, while the revenue is anticipated in the coming weeks.
Adding another notch on its belt, Australian gold explorer, Horizon Minerals Limited (ASX:HRZ) has successfully attached further distinctive achievement to its gold exploration and production endeavours. In a significant update, the Company announced its first gold production from the first stage of the Boorara Gold Mine.
Unreconciled mill grades up until now generally sit in line with anticipation and the Company plans on providing a formal grade reconciliation update on completing its first mill campaign.
Notably, Boorara Gold Mine, situated 10-kilometres east of Kalgoorlie Boulder and sitting in the lap of Western Australian goldfields saw significant recent advancements boosting mining operations at the project. The Boorara mine development succeeds the finalisation of a positive Feasibility Study, with three starter pits incorporated in mining, including Regal East, Regal West, and Crown Jewel.
Commenting on its noteworthy accomplishment, Horizon Managing Director Mr Jon Price stated that the Company’s first gold production from Boorara marks a significant milestone for Horizon Minerals, which is extremely pleased with mine performing to expectations. Mr Price said that the Lakewood Mill is running exceptionally well owing to Horizon’s team and its contracting partners that have done an excellent job to date.
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A Glimpse at the Latest Developments
Mining at the Boorara gold mine continues ahead of schedule. Horizon Minerals commenced mining at Boorara on 5 May 2020 followed shortly by first ore mining from the Regal East pit. The Company intends to concurrently mine the Regal East and Regal West pits with the focus on enabling efficient cycling of mining production and drill and blast activities. Furthermore, mining of the Crown Jewel pit has now begun, which would provide alternative dig location as the Regal pits advance.
As of now, the effective mining of total movement of 376,000 BCM has been completed with around 90,000 tonnes of oxide and transitional ore mined at a fully diluted grade of 1.5g/t Au. It is consistent with reserve model estimates for the upper areas of the pits.
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Revenue Generation
The mine development (first stage) is targeted at generating cash in the current high Australian gold price environment. It would also demonstrate the potential for tonnage and grade upliftment from infill drilling prior to larger-scale development evaluation and Mineral Resource update.
The first milling campaign started on 17 July 2020, and the first gold was poured on 23 July 2020. Grades through the mill broadly agree with expectations, and the processing is underway at expected throughput rates and gold recoveries.
Horizon Minerals has scheduled the completion of its first milling campaign in late July which would be shortly followed by the first mine to mill reconciliations after that.
Monthly milling campaigns have been scheduled through to January 2021. The Company plans to treat 159,000t of ore grading 1.86g/t Au for 8,700 ounces recovered, expecting to generate cash worth $7 million at current gold prices.
For refining and sale purpose, Dore bullion is shipped to the Perth Mint, and the revenue is expected in the coming weeks. Additionally, the ore treatment campaign on a monthly basis would continue through to January 2021.
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Way Forward
Apart from pursuing safe and efficient mining at Boorara, Horizon Minerals is channelising its efforts for the development of its other key projects as well, including Rose Hill Gold Project, Richmond-Julia Creek vanadium project and Brilliant North gold projects.
As on 27 July 2020, HRZ stock is trading at AUD 0.145, up by 3.571% (AEST:12:02pm). The company has generated a price return of 69.09% and 21.74% in three months and six months, respectively.
