Gold project developer Horizon Minerals (ASX:HRZ) has bolstered the mineral resource estimate (MRE) of its Pennys Find mine in Western Australia ahead of a potential 2024 final investment decision (FID).
The Pennys Find MRE now stands at 429,000 tonnes grading 4.57 grams per tonne (g/t) gold for 63,000 ounces of contained gold at a cut-off grade of 1.5 g/t.
Further, over 80% of the resource now sits in the higher-confidence ‘indicated’ category and can be incorporated into Horizon’s ongoing mine optimisation and underground design work.
Looking ahead, the $28 million market capitalisation company says it plans to incorporate the new resource into a Feasibility Study as it works to deliver a maiden ore reserve for the mine.
The study is slated for the June quarter of 2024, and — depending on the study results — Horizon will then look to make a FID.
Horizon Minerals CEO Grant Haywood says the resource upgrade comes on the back of the company’s 2023 drilling work.
“We look forward to completing the underground mining study and economic review in the June 2024 quarter for a development decision to be made shortly thereafter.”
“We look forward to completing the underground mining study and economic review in the June 2024 quarter for a development decision to be made shortly thereafter”
For comparison, the previous Pennys Find resource estimate, published in 2022, stood at 270,000 tonnes grading 4.99 g/t gold for 43,000 ounces of contained gold.
Over 2023, Horizon completed 10 reverse circulation (RC) and diamond tail holes for just under 3,300m in the area to expand and infill the resource at depth and to convert some of the inferred ore into the indicated category.
The Pennys Find mine is already permitted for development via a previously announced approved mining proposal and project management plan.
Horizon Minerals had $4.76 million cash and cash equivalents at hand as of 30 September 2023, according to its latest quarterly report, and the company pocketed an extra $3.1 million in October after divesting a handful of non-core tenements to fellow ASX-listed Northern Star Resources (ASX:NST).