Horizon Minerals (ASX:HRZ) has executed a new toll milling agreement for ore to be processed at Focus Minerals’ (ASX:FML) Three Mile Hill processing plant in Western Australia.
Under the agreement, 70,000 tonnes of ore from the Phillips Find Project will be processed at Three Mile Hill between September and October this year.
As a result of a grade control drilling program completed at Phillips Find, a revised schedule determined the final 70,000 tonnes of ore mined will be Three Mill Hill.
Horizon CEO Grant Haywood says this new agreement aligns with the revised mining schedule at Phillips Find and allows the company to increase its overall gold production at Boorara.
“As gold production ramps up in the June quarter we expect to commence a steady cash build from our dual mining and haulage operations,” Haywood says.
Horizon, which has a market capitalisation of $136.97 million, has also completed processing of the first 37,000 tonnes of ore from Phillips Find, under the 200,000 toll mill agreement with FMR Investments.
The first ore parcel from Phillips Find comprised 37,624 tonnes @ 1.46 grams per tonne gold for 1,675.3 ounces at an average price of $4,728 per ounce. As a result, $7.9 million was generated to Phillips Find.
An additional 80,000 tonnes of ore from Phillips Find will be processed at the Greenfields Mill in April and June, in addition to 80,000 tonnes of ore to be processed from Boorara to complete the toll processing agreement with FMR.
Meanwhile, proceeds have been received from the processing of 50,604 tonnes of ore from the Boorara Project under an ore sale agreement with privately held Norton Gold Fields’ Paddington Mill for the processing of 1.24 million tonnes of ore.
The first ore stockpile from Boorara was 50,604 tonnes @ 0.791g/t gold for 1,163 ounces sold at an average gold price of $4,256 per ounce. As a result, $4.95 million in revenue was generated.
Horizon notes the second ore parcel is being processed at Paddington, with a third parcel in the process of being hauled. The company adds more than 100,000 tonnes of ore is being stockpiled on the project’s run-of-mine pad, which allows for further campaigns to be processed at the Greenfields Mill between April and June 2025.
Haywood says the company has built up “significant” ore stockpiles, with mining now in a steady state operation.
On Friday last week, gold prices touched above US$3,080 ($4,905) per ounce — hitting another record high as investors sought safety amid fears of global trade wars sparked by US President Trump’s new tariffs, as Trading Economics reported.
Since then, the gold price has risen 2% and is now sitting at US$3,090.
Horizon Minerals is an emerging mid-tier gold producer with an extensive portfolio of gold projects in the Western Australian goldfields region.
Write to Aaliyah Rogan at Mining.com.au
Images: Horizon Minerals
