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Highlights:
- Horseshoe Metals (ASX:HOR) enters a three-year agreement with Melody Gold for processing gold surface materials at Horseshoe Lights.
- The project retains a significant copper resource base and supports a direct shipping ore copper sales approach.
- Exploration work within a 200km radius is underway to locate additional copper occurrences.
Horseshoe Metals (ASX:HOR) operates within the mining and resources sector, focusing on copper and gold development in Western Australia. The company has advanced its project development strategy by entering into a three-year option agreement with Melody Gold. This collaboration involves processing gold-bearing surface materials at the Horseshoe Lights project, a site known for its historical production in both copper and gold.
Agreement Structure
The agreement with Melody Gold covers a range of gold surface material deposits situated near a historic open pit. These include several subgrade stockpiles, a rehandle stockpile, gold leach vats, a perimeter deposit, a gold ROM stockpile, as well as gold and flotation tailings. The processing facility is designed to handle a substantial volume of material annually by employing gravity recovery technologies, with the aim of producing a concentrate comprising gold, copper, and silver.
Resource Base and Financial Terms
Horseshoe Metals retains full rights to the copper and mixed copper-gold surface materials at the project. The site encompasses an in-situ copper resource along with additional stockpile and flotation tail material. A fee has been received upfront under the terms of the option, with subsequent monthly payments based on the value derived from gold extraction. A fixed monthly remittance is scheduled to commence once processing is operational. These financial arrangements support the company’s direct shipping ore copper sales approach, reinforcing its emphasis on copper commercialization.
Expansion of Exploration
Further exploration activities are in progress within a wide area surrounding Horseshoe Lights. The initiative includes RC drilling programs and a comprehensive review of historical drilling records aimed at locating additional copper occurrences in the region. Engagement with reputable mining and commodity trading entities forms part of the overall strategy to secure funding for copper offtake operations. This coordinated effort reflects the project’s commitment to leveraging both historical data and modern exploration techniques in order to broaden the scope of resource development.
