Horizon Minerals looks to fast-track Kalgoorlie gold projects

Horizon Minerals (ASX:HRZ) is in early discussions with a number of potential joint venture (JV) partners and contractors to potentially fast-track open pit production across its portfolio of gold projects in Kalgoorlie, Western Australia. 

Horizon, which has a $23.83 million market capitalisation, says discussions are occurring ahead of planned first ore production from its Cannon Underground Project, which is expected to take place in the December quarter of 2024.

As such, the company is looking to finalise tenders and negotiate with a preferred underground mining contractor or potential partner for Cannon in preparation for a final investment decision (FID). 

Horizon is also aiming to finalise a 200,000-tonne mill allocation with FMR Investments’ Greenfields mill through toll mining contract, in line with mine designs for short-term pits at the Boorara and Kalpini projects. This is expected to allow mining contractors to estimate pricing, complete studies, and provide scope for a potential FID this year. 

Other upcoming activities in Horizon’s pipeline include negotiations for mining and haulage contracts for Boorara, Kalpini, and the Monument Project, as well as the completion of a mineral resource estimate (MRE) for Pinner and Monument, plus outstanding mining approvals for Kalpini, Pinner, and Monument.   

CEO Grant Haywood says these activities are being undertaken in line with the company’s ongoing merger with Greenstone Resources (ASX:GRS), which he says will “introduce several new, high-grade, near-term mining opportunities in the Coolgardie region.”

“Horizon has a large resource endowment that we are working towards development and bringing cashflow into the business in this record gold price environment. We have worked diligently on progressing negotiations and approvals for our projects to provide a sequence of development assets with the aim to be in sustainable gold production.

“This work will increase the optionality within our combined portfolio upon completion of our planned merger with Greenstone Resources. This will introduce several new, high-grade, near-term mining opportunities in the Coolgardie region. Developments will be sequenced to maximise near-term cash flow from low-capital projects to support the development of our long-life cornerstone assets.”

Thus far at Cannon, construction of the dewatering pipeline has been completed between the fully permitted Cannon Mine and the company’s Golden Ridge Mine, along with the installation of a pumping system and a pipeline in the Cannon pit. 

Dewatering has begun to expose the portal position for underground mining at Cannon to begin. It is expected to take 3 months to dewater the pit. 

Open pit optimisations have also been completed for Kalpini, which demonstrate ‘substantial’ cash flows via toll treatment at a gold price of $2,800 per ounce. 

At Boorara, AMC Consultants has undertaken further open pit optimisation work on the cornerstone asset, which also demonstrates the same cash flows as Kalpini. The company has also restarted study work for a ‘larger, longer-life’ development via heap leach and carbon-in-leach processing pathways. 

A caretaker has been employed to ensure security of the Cannon assets and to undertake statutory checks of the pipeline in compliance with the works approval and discharge licence, as well as the in place groundwater licences. 

Meanwhile, a Prefeasibility Study (PFS) on the updated Penny’s Find resource released in December 2023 is ongoing, and includes a maiden ore reserve. The PFS is scheduled to be released in June this year. 

Horizon Minerals is an emerging gold producer focused on its ‘highly prospective’ portfolio of projects in Western Australia’s Goldfields region. 

As of 31 December 2023, the company had $5.694 million cash and cash equivalents at hand, according to its latest quarterly report. 

Write to Adam Drought at Mining.com.au 

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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.