Horizon Minerals (ASX:HRZ) has completed an ore reserve study for the Boorara Project, which highlights it will generate $19.9 million in free cash flow at a gold price of $3,300 per ounce.
The study, conducted independently by AMC Consultants, reveals the open pit mine design produces 1.24 million tonnes at 1.24 grams per tonne gold for 49,500 ounces over a 14-month mine life.
Horizon Minerals, which has a market capitalisation of $40.26 million, has signed a binding ore sale agreement with Paddington Gold for the treatment of Boorara ore.
The ore reserve study shows that metallurgical recoveries of 92.5% will produce 45,800 ounces of gold.
CEO Grant Haywood says the ore reserve has confirmed the company’s initial work, which allows Horizon to move forward with mining at Boorara.
“Our contract negotiations are well advanced and are the final key milestone outstanding in relation to bringing this asset into production,” Haywood says.
“Horizon has strong optionality within its large resource book of projects, which we aim to develop in conjunction, and following, development of Boorara to be a sustainable gold producer and generate more cash in this strong gold price environment for the foreseeable future.”
The study is based on the gold price of $3,300 per ounce, open pit mining operations and road haulage conducted by contractors, ore processing through Paddington’s 3.8 million tonnes per year Paddington Mill, as well as project implementation and oversight by the company’s team.
Horizon Minerals says grade control drilling has been partially completed over Boorara during previous mining operations. The company has planned infill grade control drilling to begin in the coming weeks.
Ore production is expected to begin within the first month of mining, followed by processing.
Horizon Minerals will award open pit mining and surface ore haulage contracts shortly, as well as finalise management and technical teams for Boorara.
The Boorara Gold Project is fully permitted and has all statutory approvals in place. The project lies 15km east of Kalgoorlie-Boulder, adjacent to the Super Pit.
The company is exhibiting at the Diggers & Dealers Mining Forum is being held in Kalgoorlie, Western Australia from 5-7 August.
Mining.com.au will also be attending this year’s forum.
Write to Aaliyah Rogan at Mining.com.au
Images: Horizon Minerals
