Horizon Minerals (ASX:HRZ) will undertake a strategic review of its assets with a focus on organic growth with the first gold pour from its Boorara mine due in October and first gold production at Phillips Find expected by December.
Speaking to Mining.com.au on the sidelines of the Diggers & Dealers Mining Forum in Kalgoorlie yesterday (7 August 2024), non-executive Director Jon Price says Horizon is focused on a pathway towards producing 100,000 ounces a year as a “meaningful” standalone gold producer.
The Greenstone merger now makes Horizon the third largest landholding in the Western Australian goldfields and 1.8 million ounces in resource, the non-executive Director adds.
“That is our number one focus; safe, efficient gold production, build our cash balance — we have no further need for equity — and start to look at repaying our debt,” he tells this news service.
“Then we will be moving in the long-term to 50,000 ounces a year to our goal of wanting to be 100,000 ounces. If people see you’re in a pathway to 100,000 ounces a year, then you get recognised.”
Horizon Minerals, which has a market capitalisation of $45.86 million, yesterday announced it has executed an open pit mining joint venture (JV) agreement with BML Ventures for the Phillips Find Gold Project in Western Australia.
Mobilisation to site is expected imminently, alongside site establishment and pre-production works.
Under the agreement, BML will establish site facilities during the mobilisation phase. BML will sole fund the project, and once costs are recovered, surplus cash flow will be distributed to BML and Horizon Minerals on a 50:50 basis.
Phillips Find has a resource estimate of 73,000 tonnes at 2.3 grams per tonne gold for 54,360 ounces of contained gold.
“And we’ve got a toll milling allocation into a Coolgardie mill so realistically, we’re looking at around 200,000 to 250,000 tonnes all being mined in what will be stage one, then we’ll look to continue that over time,” Price says.
“Along with that, we have our Boorara asset where the mining fleet is just being mobilised now. That’s a 1.4 million tonne deal we’re doing with Paddington Gold (a wholly owned subsidiary of Norton Gold Fields). That will allow us to start mining this quarter.
“So, with the fleet mobilising into site as we speak, there’ll be first gold in October.”
That will run for about 19 months, producing about 40,000 ounces and generating about $30 million in cash flow, Price adds.
On 29 July the company approved the final investment decision (FID) for the development of the Boorara Gold Project. Cashflow from the project is estimated to be $30 million at a $3,600/oz gold price.
The World Gold Council says total gold supply in 2023 increased 3% year-on-year as mine supply and recycling both posted growth – to total 4,898.8 tonnes.
Australian gold production decreased by 4% year-on-year in the March quarter 2024, due to lower grades and disruptions from heavy rainfall, according to the Department of Industry, Science and Resources’ (DISR) latest issue of its Resources and Energy Quarterly: June 2024.
Production is forecast to grow over the outlook period as major new projects and expansions come online. Gold export earnings are expected to reach a record $33 billion in 2023–24, easing to around $31 billion in 2025–26 as prices gradually decline from record levels in Australian dollar terms.
World gold demand decreased by 5.3% year-on-year to 1,100 tonnes in the March quarter 2024. This fall was largely driven by a 28% decline in investment demand, with central bank demand continuing to be elevated.
Horizon Resources attended the Diggers & Dealers Mining Forum held in Kalgoorlie, Western Australia from 5-7 August.
Write to Adam Orlando at Mining.com.au
Images: Horizon
