Horizon Minerals Ltd (ASX:HRZ) has signed off on the final investment decision (FID) for the Boorara Gold Project in Western Australia, officially beginning development of the project and starting down the path to permanent gold producer status.
The company has already awarded contracts to Hampton Transport Services Pty Ltd for mining and ore haulage services, with no contractor payments to be awarded until the first gold pour is sold and funds received.
Horizon will provide managerial oversight and technical services as the development advances, having already filled most technical site roles and all management roles, including site senior executive and quarry manager.
Pre-production works will begin in the first half of August, with mining to follow and ramp-up over the following weeks.
Newest gold producer in Australia
“Mining at Boorara is a significant milestone for the company and will make Horizon the newest gold producer in Australia,” Horizon Minerals managing director and CEO Grant Haywood said.
“We take great pleasure in welcoming our new members of Horizon including our business partners Hampton Transport Services and the Norton Gold Fields team who will be processing Boorara ore at Paddington.
“We are focused on making Boorara a safe and efficient mining operation to create value through generating cash and the first step in sustainable gold production for Horizon.
“We are seeking to unlock the significant latent potential within our extensive portfolio of development assets which hosts a 1.8-million-ounce mineral resource.
“Following the resumption of production at Boorara, we aim to develop other projects in parallel to establish Horizon as a long-term, sustainable gold producer in a favourable gold price environment.”
The project is fully permitted with all approvals in place to begin development.
HRZ has also secured a binding ore sale agreement with Paddington Gold Pty Ltd, a subsidiary of Norton Gold Fields Ltd, with all conditions met.
Read: Horizon Minerals set to resume Boorara gold production after executing ore sale agreement
Boorara holds an independent ore reserve estimate of 1.24 million tonnes at 1.24 g/t gold, offering 45,800 ounces of gold at a 92.5% recovery rate. With a A$3,600 per ounce gold price, HRZ anticipates A$30 million in cash flow.
Horizon expects mining to take about 14 months and ore processing a further 19 months – the company is targeting first gold pour for October this year.