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Highlights
- Horizon Minerals is set to mine 1.24 million tonnes of ore from four open pits at the Boorara Gold Project.
- Mining operations will span 14 months, followed by 19 months of processing at Norton Gold Fields’ Paddington plant.
- A grade control program is nearly 80% complete, with initial mining activities commenced in August 2024.
Horizon Minerals Limited (ASX:HRZ) has announced a significant update regarding the development of its Boorara Gold Project. The company has made substantial progress since approving the project in late July 2024, with plans to mine a series of four open pits containing a total of 1.24 million tonnes of ore with an average grade of 1.24 grams per tonne (g/t) of gold, translating to approximately 49,500 ounces of gold.
Mining operations at Boorara are projected to occur over a period of 14 months, followed by a processing phase that will last for 19 months at Norton Gold Fields’ Paddington processing plant. The project is expected to generate an estimated $30 million in free cash flow based on a gold price of A$3,600 per ounce. This financial outlook is promising for Horizon as it seeks to enhance its production capabilities and establish a strong market presence.
To facilitate mining operations, Horizon has awarded contracts for mining services and surface ore haulage to Hampton Transport Services Pty Ltd. These contracts were secured on competitive terms, and notably, no payments to the mining contractor will be made until the first gold pour is sold and the funds are received. This strategic move underscores Horizon's commitment to maintaining a robust financial position throughout the project’s development.
A grade control program for the Boorara project is well underway, with nearly 80% of the program completed. This is a critical step in ensuring the quality and consistency of the ore extracted from the site. Mining commenced in August 2024, and the team successfully exposed and mined the first ore in late September. To further enhance production rates, Horizon plans to initiate night shift operations this week, eventually ramping up to four shifts for digging activities.
The company aims to establish an ore stockpile of 40,000 to 50,000 tonnes at Boorara before beginning the haulage process. This stockpiling strategy is designed to optimize the logistics of transporting ore to the Paddington processing plant. Horizon is on track to deliver its first ore to Paddington by late October 2024, with the initial gold production expected in November. This timeline aligns with the company’s operational goals and market expectations.
Looking ahead, Horizon’s next steps include completing the remaining Phase 1 grade control drilling program and continuing to build the first parcel of ore for delivery to Paddington. The completion of these tasks will be crucial in maintaining the momentum of the Boorara project and ensuring a smooth transition into the production phase.
Overall, the Boorara Gold Project is shaping up to be a key asset for Horizon Minerals, promising not only significant financial returns but also contributing to the company's growth and development in the competitive gold mining sector. With the project progressing according to plan, Horizon is optimistic about the future and is poised to make a meaningful impact in the industry.
