Horizon Minerals Limited (ASX: HRZ) announced that it has reached an agreement with Northern Star Resources Limited to a tenement exchange in the WA Goldfields for no cost.
The deal would result in Northern Star acquiring tenements north and northwest of Kalgoorlie, and Horizon gaining tenements around Kalgoorlie for nil cash consideration.
As per the terms of the transaction, Horizon would divest its 100% interest in the Anthill, Blister Dam, New Mexico, White Flag, and Kanowna North tenements.
In return, Horizon would acquire 100% interest in Northern Star’s Rosehill, Brilliant North, and Gunga West projects in Coolgardie and the Golden Ridge, Balagundi, Abattoir, and Mt Monger projects in Kalgoorlie.
HRZ reported that the tenement exchange agreement is expected to complete in the December Quarter 2019.
Horizon’s acquisitions in Coolgardie
Horizon reported that under the agreement, it will acquire 100% interest in the Rosehill (M15/652), Brilliant North (M15/1204), and Gunga West projects located in close proximity to the township of Coolgardie in the Eastern Goldfields of Western Australia.
Rosehill is located 0.5km southeast of Coolgardie and lies on the western margin of the Archean Norseman-Menzies Greenstone Belt.
Mineralisation is hosted within the main Rose Hill porphyry, adjacent to the hanging wall ultramafic and an eastern porphyry unit. Gold is associated with stockwork veining throughout the porphyry and disseminated within altered porphyry.
Rosehill has been subject to several small scale mining operations since 1898 with reported production of approximately 5,000t grading 8.3g/t Au for 1,340oz.
The Brilliant North lease, also known as the State Battery deposit due to its close proximity to the historic Coolgardie State Battery is 500m to the southeast of Rose Hill and partially overlies the Brilliant North project currently owned by Focus Minerals.
The Gunga West leases are located 10km north east of Coolgardie and in close proximity to processing infrastructure including Focus Minerals’ Three Mile Hill plant.
Gunga West is hosted within an ultramafic unit bounded by high Mg basalts with the mineralisation in a shear zone with quartz-carbonate veining and minor sulphides. During 2013, Blue Tiger Mines mined 137,000t @ 1.86 g/t Au for 8,170oz.
Horizon’s acquisitions in Kalgoorlie
Horizon reported that under the agreement, it will acquire 100% interest in the Golden Ridge, Balagundi, and Mt Monger projects located in close proximity to its Boorara and Nimbus projects 10km west of Kalgoorlie-Boulder.
Golden Ridge Gold Mine had a production of 249,356t @ 17.1g/t for 139,546 oz to an underground depth of 174m with more recent open cut mining producing 1.78 Mt @ 1.98 g/t Au for 113,520 oz.
Gold is largely confined to a north-south trending, sub vertical felsic fragmental unit located between shales and cherts to the west and ultramafic sequences to the east.
Horizon said that Northern Star also owns several prospects in the Balagundi-Kanowna South areas. The geology is dominated by a sedimentary sub-basin comprising shale, siltstone, and greywackes that have been intruded by gabbroic sills and felsic porphyry dykes. HRZ said that these provide additional exploration opportunities.
Horizon announced that after the swap, it will solely develop 100% of the Rose Hill / Brilliant north gold project area.
The company said that on completion of the acquisition, the Coolgardie assets will be consolidated into the geological database and will form part of the consolidated Feasibility Study due for completion mid-2020.
HRZ said that there has been very little exploration work at Golden Ridge since mining was completed. The company said that it will undertake a more detailed geological review of the Golden Ridge mining leases once swap is completed.
Horizon reported that the tenement exchange agreement is expected to complete in the December Quarter 2019 and contains conditions precedent, warranties, and representations and other clauses that are standard for transactions of this nature including provision of signed transfers, all mining information and any statutory consents required.
Horizon Managing Director Jon Price said: “This is a sensible transaction between Horizon and Northern Star that place assets within each company’s areas of interest.
For Horizon, it adds contiguous tenure to the Boorara Gold Project area in Kalgoorlie and additional strategic assets in Coolgardie including the Rose Hill – Brilliant North tenements which give us the ability to unlock the full value of the Coolgardie Gold Project as we continue to progress formal binding documentation and required approvals for the potential acquisition.”