Horizon Minerals Ltd (ASX:HRZ) is on track to be pouring the first gold bars from its Boorara Gold Project in October, with mining underway at the project adjacent to Super Pit in the heart of the Western Australian Goldfields.
This comes at an ideal time with the gold price, in Australian dollar terms, now trading just below its all-time high of almost A$3,800 per ounce earlier this month.
Horizon’s current mining plan, which it approved last month, involves mining a series of four open pits containing 1.24 million tonnes of ore at 1.24 g/t gold for 49,500 ounces of gold.
"A major milestone"
The mining will take place over 14 months, with processing at Norton Gold Fields’ Paddington plant taking more than 19 months and generating $30 million in free cashflow at a gold price of A$3,600 per ounce.
Horizon advises that the first ore is on track to be mined in September, and first milling and gold production is expected at Paddington in October.
“We are eagerly awaiting mining progressing to expose first ore in September and pouring gold bars in October to give us first revenue from Boorara in this strong gold price environment”, said Horizon managing director and CEO Grant Haywood.
“This is a major milestone for Horizon as we commence our journey to be a long-term sustainable gold producer, delivering significant cashflows into the business to create further value through our significant portfolio of assets.”
Mining accelerating
Mining services and surface ore haulage contracts for Boorara have been awarded to Hampton Transport Services. Horizon says these were awarded “on competitive terms, with no mining contractor payments until first gold pour sold and funds received”.
Hampton has successfully mobilised and established the site, and grade control drilling is now well advanced.
The first drill and blast pattern was fired last week to build up broken stocks in conjunction with free dig areas in Pit 2, which is the larger pit in the Regal zone of the Boorara ore system.
Excavation is occurring on single shift and will transition to double shift by the end of August. A second digger shift will commence in September and ramp up to four digger shifts by the end of September.
Once phase 1 of the grade control drilling program is complete, the company will gradually ramp up load and haul production activities throughout the remainder of August and September.
“It is very pleasing to see mining accelerating at Boorara, with all activities being undertaken ahead of schedule and safely, which is a credit to the site team and our contract business partners”, said Haywood.
Horizon’s project locations, regional geology and surrounding infrastructure.
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