Summary
- The mining at Horizon’s Boorara gold mine progressed ahead of schedule during the June quarter, with first gold production anticipated in July 2020 via third party milling at the nearby Lakewood Mill.
- The company at the current high gold price is anticipating cash generation via first stage Boorara mine development, which is expected to foster Horizon’s drilling plan.
- The high-grade drilling results at Rose Hill Gold Project is expected to underpin the Mineral Resource estimate, which is expecting its completion and release in the September 2020 quarter.
- The divestment of Nanadie Well Copper Project and resource update work for the Lilyvale vanadium project were also key undertakings by the company.
Australian explorer, Horizon Minerals Limited (ASX: HRZ) remained all charged-up with noteworthy advancements in different projects, together summing up an impressive June quarter for the yellow-metal explorer. Heedless of unsurmountable disruptions elicited due to the pandemic, the notable accomplishments of the company bear testimony to the carefully crafted strategies that were implemented in a planned manner.
The ardent focus of Horizon on the gold explorations in the Kalgoorlie and Coolgardie regions of Western Australia seems to stimulate its exploration ventures and strategic developments. The gold-centric objectives being the anchor to the exploration activities has prompted the divestment of the Nanadie Well Copper Project, stationed near Meekatharra in the Murchison District of Western Australia, subsequent to the quarter-end. Notably, the Company reached an agreement with the Murchison-based copper explorer, Cyprium Metals Ltd for divesting its 100% owned Nanadie Well project for $1.5M in cash and shares.
ALSO READ: Horizon Minerals Ltd Channelised towards Gold Exploration, Divests Nanadie Well Copper Project
Furthermore, to successfully sail through the crisis, Horizon Minerals has put in place prudent safety and financial measures for ensuring the welfare of staff and local community and strengthening the Company’s balance sheet. The Company has planned its drilling operations at different projects on the back of positive cash flow generation from the Boorara mine development in the second half of 2020.
ALSO READ: Horizon Minerals Exploration Endeavours Enhances Glittering Gold Prospects
Let us deep dive to explore the significant advancements and key undertakings that characterised June Quarter for the Company.
Boorara Gold Mine: Mine Development and Operations
The significant developments at the Company’s 100% owned Boorara gold mine situated 10 kilometres east of WA goldfields’ Kalgoorlie-Boulder were witnessed during the June Quarter. The operations received Board Approval alongside the project financing and necessary statutory approvals, which were successfully completed, with mining currently underway at Boorara Gold mine.
The Company awarded the mining and haulage contracts to Hampton Transport Services Pty Ltd for completing the work. A toll milling agreement is in effect for treating ore at Golden Mile Milling’s 1Mtpa Lakewood Mill, which is situated 7 kilometres to Boorara’s West. The Boorara mine development follows the completion of a positive Feasibility Study (FS).
Boorara Stage 1 comprising a free-milling oxide and transitional material, witnessed grade control drilling completion on 4m X 10m in the north and 5m X 10m in the central areas. Three Starter pits covering mining operations include Crown Jewel, Regal East, and Regal West.
The first stage of mine development is targeted to generate cash in the current high Australian gold price scenario while also demonstrating the potential for tonnage and grade uplift from infill drilling prior to the evaluation of larger-scale development and Mineral Resource update.
Production guidance involving 8,500 - 9,000 ounces at All In Costs of $1,640 - $1,690 per ounce at the current gold price of $2,600 per ounce is expected to generate $7.1 million in cash
Up until now, a total movement of 287k BCM has been mined with ~61k tonnes of oxide and transitional ore mined at a fully diluted grade of 1.4g/t Au. It is in line with reserve model estimates for the pits’ upper oxide areas. The significant free dig material volume mined to date reduces drill, and blast costs minimise dilution and upgrade mine productivity.
First ore treatment campaign scheduled for mid-July 2020 will treat ~25k tonnes of ore over two weeks from the Regal East pit allowing the detailed mine to mill grade reconciliations.
With the detailed mapping ongoing as a part of the consolidated Feasibility Study, Horizon Minerals expects its first gold production and revenue in July 2020, with production on a campaign basis progressing through to January 2021.
Rose Hill
During the Quarter, the Company received high-grade drilling results from the second phase of drilling at the Rose Hill gold project, sitting 0.5 kilometres east of Coolgardie and 35 kilometres west of Kalgoorlie
The three drill holes consisted of RC pre-collars and diamond HQ core, assisting in the creation of ‘underground’ high-grade resource, and providing opportunity to view the Rose Hill orebody. The Company plans on drilling including completion of Deep RC and diamond drilling in selected areas along with the confirmatory metallurgical and processing testwork
The updated Mineral Resource estimate is slated for completion and release in the September Quarter 2020.
Furthermore, Horizon has also scheduled the initial drilling at the adjacent Brilliant North prospect (M15/1204), which will target shallow mineralisation within 30m of surface, which can undergo open pit mining and result in a separate JORC compliant resource
Richmond - Julia Creek Vanadium Project
In March 2017, Horizon Minerals with Richmond Vanadium Technology Pty Ltd (RVT) entered a strategic development JV, covering Horizon’s 100% interest in the North West Queensland-based Richmond vanadium project.
Horizon Minerals’ Joint Venture, Richmond-Julia Creek Vanadium Project with Richmond Vanadium Technology Pty Ltd (RVT) saw the upgradation in the geological database with all new drilling data. RVT released an updated Mineral Resource Estimate for Lilyvale.
Source: HRZ ASX Update
The success of pre-concentration and downstream test work earlier has allowed advancements to simulated production tests, which are currently being conducted with semi-industrial scale samples are nearing completion.
ALSO READ: Horizon Minerals Appoints New Chairman, Skilful Guidance Building a Success Story
Way Forward for September Quarter
Kalkine Image (Data Source: HRZ ASX Update)
HRZ stock closed at $0.140 per share, up by ~3.7% intraday on 17 July 2020. A three-months return of over 84.93% is returned by HRZ shares.
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July 17, 2020 at 02:17PM
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Horizon Minerals' Dazzling June Quarter Report Card Zooming Strong Exploration Momentum - Kalkine Media
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