Horizon (ASX:HRZ) gold reserves show near-term Kalgoorlie cash flow
July 26, 2024Horizon Minerals is confident it has a gold mine on its hands at Boorara after an independent JORC ore reserve showed a 49.5-thousand-ounce operation next to the Super Pit near Kalgoorlie in Western Australia.
The open pit mine design showed production from 1.24 million tonnes at a fully diluted grade of 1.24 grams per tonne over a 14 month mine life.
An ore sale agreement at a 92.5 per cent metallurgical recovery produces 45.8 thousand ounces recovered and a project generating close to $20 million in free cash flow after capital at a gold price of $3300 an ounce.
Permits and approvals are all in place, mining and haulage contracts advanced, a binding ore sale executed, and Horizon expects an imminent development decision and the beginning of mining in September.
Horizon Minerals Managing Director and Chief Executive Grant Haywood said the company was very pleased the ore reserves validated its work and allowed it to move forward with mining and the return of strong cashflows.
“Our contract negotiations are well advanced and are the final key milestone outstanding in relation to bringing this asset into production,” he said.
“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.”
Horizon’s recent merger with Greenstone Resources means it now has 1.8 million ounces of gold, 20.2Moz silver, 104 thousand tonnes of zinc, 283kt nickel, 40.5kt cobalt and 296.2kt manganese to play with in group resources.
The greater Boorara resource holds around 428,000 ounces, with another 40,000-plus nearby at the Monument and Pinner deposits the likely marks for expanded mining in the area.
An Australian gold price now over $3620 has certainly made it a good time for smaller players to get to near-term production in what remains a highly fragmented industry.
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