Horizon Gold (ASX:HRN) has reported its Definitive Feasibility Study (DFS) confirms the Gum Creek Gold Project as a viable development opportunity in Western Australia.
The study delivers a production target of 880,000 ounces over 10 years at an all-in sustaining cost of $2,995 per ounce, with first gold scheduled for H2 2028.
Horizon estimates pre-production capital at $350 million, including mine development, plant construction and infrastructure.
Financial metrics include pre-tax free cash flow of $1.854 billion, net present value of $1.307 billion, and internal rate of return of 53.1%.
The study targets average annual production of 98,000oz over the first five years, peaking at 114,000oz in year two.
“The completion of this DFS is a defining milestone for Horizon Gold, confirming Gum Creek as a robust, simple, and technically de-risked development project ready to advance quickly toward a final investment decision (FID),” Managing Director Scott Williamson says.
“Gum Creek is one of the most advanced undeveloped gold projects in Western Australia, and this study underpins a clear pathway to production in 2028.”
The production target comprises 962,000oz of mined gold (Au) from 25.1Mt at 1.19 grams per tonne, underpinned by a maiden ore reserve of 18.2Mt at 1.24g/t for 728,000 contained ounces across seven deposits.
The study incorporates conventional open pit mining and a new 2.4-million-tonne-per-annum processing facility, with overall life-of-mine gold recovery estimated at 91.5%.
Horizon plans to upgrade accommodation and construct a new village, with a hybrid LNG-solar-battery power system.
The board has endorsed proceeding with project activities, with an FID targeted for Q2 2027. HRN expects plant construction to commence in Q4 2027, with first gold targeted for H2 2028.
Horizon Gold is a Western Australian gold developer advancing the Gum Creek project toward an FID.
Write to JC Villarba at Mining.com.au
Images: Horizon Gold
