Horizon Minerals (ASX:HRZ) has made a final investment decision to develop the Boorara Gold Project in Western Australia.
The decision to go ahead with development follows an ore reserve study for the project last week, which highlighted it will generate $19.9 million in free cash flow at a gold price of $3,300 per ounce.
The price of gold is currently $3,656 (US$2,398.70).
Horizon Minerals, which has a market capitalisation of $40.26 million, awarded Boorara mining services and surface ore haulage contracts to Hampton Transport Services, with no payments until funds have been received from the first gold pour.
Ore from Boorara will be processed at Paddington under an ore sale agreement with Norton Gold Fields.
Mobilisation to site will begin immediately, with pre-production works also about to get underway. Grade control drilling is expected to begin in the first half of August and mining will begin ramping up from mid-August.
First milling and gold production is expected to begin in October 2024.
CEO Grant Haywood says mining at Boorara is a milestone and will make Horizon the newest gold producer in Australia.
“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,” Haywood says.
“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 proposed mining project lies 15km east of Kalgoorlie-Boulder, adjacent to the Super Pit in Western Australia’s Goldfields region.
Horizon Minerals is an emerging mid-tier gold producer with an extensive portfolio of gold projects in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Horizon Minerals
