Horizon Minerals Ltd (ASX:HRZ) has just wrapped up its independent ore reserve study for the Boorara Gold Project, conducted by AMC Consultants.
Financially viable project
The study confirms a financially viable project, with a projected open pit mine design producing 1.24 million tonnes at a fully diluted grade of 1.24 g/t gold for a total of 49,500 ounces over an estimated 14-month mine life.
Key highlights include an ore sale agreement with Paddington Gold Pty Ltd, a wholly-owned subsidiary of Norton Gold Fields Ltd, that anticipates 45,800 ounces of recovered gold at a metallurgical recovery rate of 92.5%.
The project is expected to generate A$19.9 million in free cash flow, assuming a gold price of A$3,300 per ounce.
The Boorara project,15 kilometres east of Kalgoorlie-Boulder in Western Australia, is fully permitted with all statutory approvals in place.
Mining and haulage contracts are well advanced, and the company is hoping to make a swift development decision, with mining planned to start as soon as September.
Moving forward with mining
Horizon managing director and CEO Grant Haywood said: “We are very pleased that the independent Ore Reserve has validated our initial work that allows us to move forward with mining at Boorara and bring strong cashflows into Horizon.
“Our contract negotiations are well advanced and are the final key milestone outstanding in relation to bringing this asset into production.
“Horizon has strong optionality within its large resource book of projects, which we aim to develop in conjunction, and following, development of Boorara to be a sustainable gold producer and generate more cash in this strong gold price environmental for the foreseeable future.”
Boorara is part of Horizon’s larger portfolio, which includes several other projects intended to be developed sequentially.
The company’s goal is to become a sustainable gold producer and generate consistent cash flows in the current favourable gold price environment.
The detailed Ore Reserve Study, conducted by AMC Consultants, underpins the project’s viability.
It includes a mining operation with a stripping ratio of 6.1 and ore processing through the Paddington Mill, around 56 kilometres from Boorara.
The study’s key outcomes highlight that the project’s total pit volume is 4.37 million bank cubic metres (MBCM), with capital costs estimated at A$450,000.
In terms of the next steps for the project, Horizon is in the process of negotiating open pit mining and surface ore haulage contracts, finalising the management and technical team for Boorara, and commencing a grade control infill program.
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