Horizon Minerals (ASX:HRZ) has mined the first ore at its Boorara Gold Project in Western Australia and is anticipating strong cash flows as the price of the safehaven metal continues to rally.
This company began mining operations in August 2024 after securing approvals for the development of the project in late July 2024.
Horizon Minerals, which has a market capitalisation of $52.57 million, will mine a series of four open pits containing 1.24 million tonnes of ore at 1.24 grams per tonne for 49,500 ounces of gold.
Mining is expected to occur over 14 months and processing over 19 months at Norton Gold Fields’ Paddington plant. As a result, the company expects to generate $30 million in estimated free cash flow at a gold price of $3,600 per ounce.
CEO Grant Haywood says Boorara is on track for first ore delivery this month, with gold pouring occurring in a high gold price environment and delivering first revenue shortly.
As of 3 October, the gold price is at $3,874,74 per ounce, as reported by ABC Bullion.
“Despite some labour shortages at site and in the general market, the work is progressing safely, efficiently, and on schedule,” Haywood says.
Horizon says the grade control program is well advanced, with nearly 80% of the program completed.
Night shift operations will begin this week to increase production rates. The company intends to establish a stockpile of 40,000 to 50,000 tonnes at the Boorara Project ahead of haulage beginning.
At Paddington, the first ore is on track for delivery late this month, while gold production is expected to start in November 2024.
The Boorara Project lies 15km east of Kalgoorlie-Boulder, adjacent to the Super Pit in the Western Australian Goldfields region.
Horizon Minerals is an emerging gold producer focused on its portfolio of gold projects comprising 1,100km2 in the Western Australian Goldfields region.
Write to Aaliyah Rogan at Mining.com.au
Images: Horizon Minerals
