Horizon Minerals Ltd (ASX:HRZ) has recapped its extensive June quarter, with activity centred on ore reserve generation ahead of a consolidated feasibility study.
Out in the field, the emerging mid-tier gold producer spent FY21’s final quarter conducting mineral resource upgrades, approvals work, resource modelling and advancing a 50,000-metre drilling campaign across its WA Goldfields assets.
In the board room, Horizon’s leadership executed a sale agreement to acquire the Bulong South, Glandore and Cowarna gold projects for $5 million. The materials stock also divested two of its royalties for $7 million, with $4 million of that payment already reflected on the company’s balance sheet.
At the end of the quarter, Horizon had $11.5 million in the bank to support its ongoing exploration campaign, while its listed investment universe totalled $4.2 million.
As it enters the new financial year, Horizon will continue to work towards its ultimate goal: building a standalone gold business in one of Australia’s premier gold regions.
All eyes on Boorara
One of the June quarter highlights involved a mineral resource update at Horizon’s Boorara gold play.
The revised estimate now stands at 11 million tonnes of resource, grading 1.26 g/t/ gold for 448,000 gold ounces with a lower 0.5 g/t cut-off grade.
This resource upgrade marks a 34% increase on the previous estimate model, with metallurgical recoveries exceeding expectations at a strong 94.5%. Of that, 40% of the material will be recovered through gravity concentration.
Work continues at Boorara into the September quarter, with mine optimisation, staged open pit design, approvals and economic analysis underway ahead of the project’s maiden ore reserve.
Resource and reserve work
Currently, Horizon is evaluating its core open-pit and underground projects ahead of a consolidated feasibility study, which is anticipated in the December quarter.
At its Rose Hill and Boorara assets, Horizon has already established mineral resource estimates (MRE), while MREs for the Binduli, Teal, Penny’s Find and Kalpini assets are expected at some stage in the September or December quarters.
Maiden ore reserves are also anticipated at the Rose Hill and Boorara tenements in the current quarter, with reserves for the remaining properties expected before the new year.
Ultimately, all reserves will be consolidated into an initial production profile and economic model for a development decision, which will underpin the construction of a standalone mill at the Boorara mine site.
Exploration and evaluation
During the June quarter, Horizon completed 1,515 metres of drilling and received results from more than 9,000 metres of exploration.
This activity forms part of a broader 50,000-metre drilling campaign intended to define existing resources and identify new discoveries across the company’s 1,00-square-kilometre asset portfolio.
Diamond, reverse circulation and aircore drilling took place across the Binduli, Teal, Kalpini, Windanya, Penny’s Find and Boorara project areas before the new financial year.
In addition, up to four drill rigs were focused on generating new discoveries across a suite of high-priority targets, including the Kanowna South, Balagundi, Lakewood and Yarmany.
However, because of significant laboratory delays, Horizon is still waiting for results from exploration across these areas. Overall the company says these results will impact its follow-up drill plans, resource updates and reserve work.
Meanwhile, infill and extensional reverse circulation and diamond drilling advanced over the Penny’s Find Gold Project, a precious metals play locked into a joint venture agreement with Orminex Ltd (ASX:ONX).
Recent exploration at the precious metals asset uncovered as much as 23.56 g/t gold, with an independent MRE released less than one week ago.
Underground optimisation, design and economic analysis is now underway to inform ore reserve generation and an underground mine development decision early in the December quarter.
September quarter activities
Looking ahead, Horizon intends to progress its large-scale exploration program across its WA Goldfields portfolio and release additional drilling results.
The mid-tier gold explorer is also chasing resource updates across the Teal, Kalpini, Penny’s Find and Bindul gold projects as it advances its consolidated feasibility study towards completion in 2021’s second half.
Beyond its gold exploration portfolio, Horizon is pursuing updates at its Nimbus silver-zinc project and the Richmond vanadium joint venture asset.
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