Horseshoe Metals watched a stock price burn of over 11% in mid-day trade on revealing its intention to sell-off its wholly owned Horseshoe Lights Copper-Gold Project. The stock could be seen trading close to its 52-week low at $0.008, down 11.111% on 6 March 2019 (2:12 PM AEST).
Australia’s leading copper and gold explorer, Horseshoe Metals Limited (ASX: HOR), told that it has received several unsolicited approaches from third parties putting across their interest in company’s historic Horseshoe Lights gold-copper mines which have not been in operation since 1994. As a result, the company has started a strategic review of options to sell its Horseshoe Lights Project with the aim to deliver the best value to its shareholders.
Discovered in 1946, Horseshoe Lights Copper-Gold Project is located in the Bryah Basin region of Western Australia, comprising seven tenements that cover an area of circa 33 square kilometres. It includes closed Horseshoe Lights mine that was in production up until 1994, delivering total life of mine production of 3.3 million tonnes with 2.9 g/t Au and 1.7% Cu. The project demonstrates the limited drilled area rich in gold and copper minerals. Moreover, the area is said to possess substantial regional shear structures that have the potential to return en-echelon ore-body repetitions.
The company informed that it has appointed leading Perth advisory firm PCF Capital Group to carry out a sale process to identify options that are in the best interest of its shareholders. However, any potential sales will reportedly be subject to shareholders and regulatory approval.
As per the company’s information, the Horseshoe Lights orebody has a JORC Resource of 12.85Mt @ 1.00% Cu and is interpreted as a deformed Volcanogenic Hosted Massive Sulphide (VMS) deposit and is hosted by quartz-sericite and quartz-chlorite schists of the Lower Proterozoic Narracoota Formation, which also hosts the DeGrussa mine.
In September 2018, the company completed a campaign of reverse circulation (RC) drilling at Horseshoe Lights which returned several significant intercepts including bedrock results of 11m at 1.54% Cu from 72m and 8m at 0.96% Cu from 50m as well as historic waste rock landform intercepts of 4m at 2.2g/t Au from 1m and 3m at 1.4% Cu from surface.
The Group has been focusing on evaluating the viability of a low-capex oxide copper treatment process. In the historical leaching test work, the company discovered that oxide copper material present at Horseshoe Lights is very amenable to acid leaching with copper recoveries of over 80% achieved.
The conceptual production rate for the company’s Oxide Copper Project Scoping Study stands at 5,000 tonnes per annum of contained copper metal for a period at least five years. Through this coping study, the company was trying to establish the technical and economic parameters that will be required to recommence copper production at the mine.
HOR stock has witnessed a massive negative change of 52.93% over the past 12 months despite a surge of 12.50% in the past three months.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.