Horizon Minerals updates Boorara gold resource and delivers 34% increase in grade

Horizon Minerals Ltd (ASX:HRZ) has received further validation of the golden potential of Boorara Gold Project, 15 kilometres east of Kalgoorlie-Boulder in the Western Australian Goldfields, with an updated independent mineral resource estimate delivering a 34% increase in grade. After completing grade control drilling, trial mining and toll mining, the new independent open pit mineral resource estimate after depletion now stands at 11 million tonnes grading 1.26 g/t gold for 448,000 ounces at a 0.5 g/t gold cut-off grade. Importantly, more than 77% of the resource is in the measured and indicated mineral resource categories with resource grade increasing 34% in line with the trial results. The mineralisation remains open along strike and at depth with a large quantity of unclassified material outside the current resource envelope.  De-risks larger-scale development Trial mining and toll milling in 2016 and 2020 produced 8,100 ounces at a reconciled grade of 1.44 g/t gold and a 94% calculated gold recovery. In addition, extensive pit mapping and a review of structural geology at all trial pits improved geological confidence and de-risked the larger-scale development. Horizon managing director Jon Price said: “The highly successful trial has added to an extensive body of work completed at Boorara over many years.  “We now have a much greater understanding of the deposit which will significantly de-risk the larger-scale development being assessed as part of the consolidated feasibility study.  “Mine optimisation and design work is well advanced and we see the potential for Boorara to provide long-term baseload feed for the proposed mill at site avoiding additional haulage and toll milling costs.” Trial and toll mining The trial mining in 2020 generated $3.6 million in free cash flow after all costs and enabled an extensive assessment of the geology, mining parameters, metallurgy and processing parameters. It also determined that the optimal development pathway for Boorara is bulk mining the entire orebody and ore processing onsite which avoids additional haulage and toll milling costs.  In 2020, the decision was made to toll treat up to 150,000 tonnes through the Lakewood Mill, 7 kilometres to the west, to further de-risk the larger-scale development and confirm metallurgical recoveries, reagent consumptions and optimal processing parameters for plant design. Horizon’s project area including resources and surrounding infrastructure. Next steps Boorara is one of five core advanced development projects being assessed as part of the consolidated feasibility study aimed at delivering an initial five-year mine plan to underpin the establishment of a stand-alone processing plant at the Boorara mine site. The updated mineral resource estimate will now be used to update the mine optimisation and design work enabling the compilation of a maiden ore reserve for Boorara for incorporation into the consolidated feasibility study and economic models.  The calculation of the estimate on the basis of open pittable ore with RPEEE is expected to result in a high level of conversion to ore reserves. Statutory approvals are well advanced and preliminary process plant design and associated infrastructure work has been completed enabling a production schedule and financial evaluation to be finalised in the December quarter of 2021.  Further work on the core 100%-owned satellite projects including Rose Hill, Crake, Jacques Find and Kalpini is advancing with further resource updates expected in the June quarter of 2021.