Horizon Minerals (ASX:HRZ) has commenced mining activities at the Boorara Gold Project in Western Australia, with the the first drill and blast pattern fired last week, and the first ore on track to be mined next month and processed the following month.
In late July 2024, Horizon secured approval to develop Boorara, through mining a series of four open pits containing 1.24 million tonnes of ore at 1.24 grams per tonne (g/t) gold 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 to generate $30 million in free cash flow at a gold price of $3,600 per ounce.
Once phase one of the grade control drilling program is complete, the company will conduct gradual ramp-up load and haul production activities throughout the remainder of August and September.
CEO Grant Haywood says all of the activities are being undertaken ahead of schedule and safely, which is a credit to the site team and the company’s contract business partners.
“We are eagerly awaiting mining progressing to expose first ore in September and pouring gold bars in October to give us first revenue from Boorara in this strong gold price environment,” Haywood says.
“This is a major milestone for Horizon as we commence our journey to be a long-term sustainable gold producer, delivering significant cashflows into the business to create further value through our significant portfolio of assets.”
Boorara mining services and surface ore haulage contracts were awarded to Hampton Transport Services on competitive terms, with no mining contractor payments until first gold pour sold and funds received.
Hampton has mobilised and established the site, while advancing grade control drilling.
The proposed mining project is wholly owned and lies 15km east of Kalgoorlie-Boulder, adjacent to the Super Pit in the heart of Western Australia’s goldfields region.
Horizon Minerals is an emerging mid-tier gold producer with an extensive portfolio of highly prospective gold projects in Western Australia.
Write to Aaliyah Rogan at Mining.com.au
Images: Horizon Minerals
