Horizon Minerals higher on acquiring Bulong South, Glandore and Cowara gold projects for $5 million

Horizon Minerals Ltd (ASX:HRZ) has executed a binding tenement sale agreement with private mining company Aurenne Group Holdings to acquire 100% of the Bulong South, Glandore and Cowarna gold projects in Western Australia for total cash consideration of A$5 million. The Bulong South project contains the development-ready high-grade Cannon Gold Project which joins the baseload Boorara project, Rose Hill, Binduli, Teal and Kalpini satellite deposits as core development projects under evaluation to underpin the proposed construction of a standalone processing plant at Boorara. Glandore sits 4 kilometres to the east of Bulong South and 14 kilometres east of Boorara and has multiple advanced open pit and underground exploration targets with historic drilling results awaiting follow up. Cowarna project covers 138 square kilometres and sits immediately east of the emerging Mt Belches Gold Project within Silver Lake Resource Limited’s (ASX:SLR) (OTCMKTS:SVLKF) (FRA:4SL) Mt Monger gold operation with walk-up drill targets within the orogenic banded iron formation units to the southeast. Shares have been up to 31% higher intra-day to 15 cents. “Complementary development assets” Horizon managing director Jon Price said: “Horizon’s core focus remains firmly set on developing a standalone gold production business in the Kalgoorlie and Coolgardie regions and this significant acquisition aligns with our strategy of further regional consolidation of advanced, complementary development assets in close proximity of the proposed Boorara Mill. “The Cannon underground gold project presents a high-grade near-term development opportunity that will now be incorporated into the consolidated feasibility study and can provide high-grade ore feed in the early years to complement the baseload Boorara deposit and the four advanced open pit and underground satellite projects currently under evaluation. “We also see the potential for significant resource growth and exploration upside from the Bulong South, Glandore and exciting Cowarna project areas with multiple walk-up drill targets on major geological structures. “Drill planning is now underway, and we look forward to providing further updates as we complete the transaction, update mine development studies and commence exploration drilling.” Bulong South and Cannon Gold Mine Bulong South comprises three granted mining leases, two prospecting licences, two exploration licences and four miscellaneous leases covering a total area of around 180 square kilometres and also includes a significant number of historic mines and workings within the rich quartz vein system. Notably, the Cannon underground deposit with an established mineral resource of 142,000 tonnes grading 5.17 g/t gold for 24,000 ounces with mineralisation open at depth and to the north and south along the Cannon shear zone. Previous feasibility work completed in 2019 delivered a maiden ore reserve of 117,000 tonnes grading 5.31 g/t gold for 20,000 ounces for the Cannon deposit and positive economic results at a A$1,750/ounce gold price for a decline development from the base of the open pit via contract mining and toll milling. Horizon’s Project area locations, resources and surrounding infrastructure with the new acquisitions shown in orange. Acquisition terms The projects are being acquired for a total cash consideration of A$5 million on the following terms: A$2.5 million in cash at settlement funded from existing cash reserves; and A$2.5 million in cash on the earlier of 12 months from settlement or first gold production from the Cannon underground gold mine. Conditions precedent to settlement include: Consent of the Minister required under the Mining Act for the transfer of the tenements having been obtained; Establishment of a mortgage deed over the project as security for the deferred payment; and The execution of any third-party agreements required. The provision of all mining information Settlement of the transaction is expected in the current June quarter of 2021. Looking forward The company is confident there is significant exploration potential at all project areas with target review and drill planning now underway and drilling to commence in the September quarter of 2021. Multiple exploration drill targets have been identified within the greater Bulong South and Glandore areas with drill planning underway for the Pinner, Monument, Lavaeolus, Central zone and Doughnut Jimmy prospects. In addition, Cannon will now join Boorara, Rose Hill, Binduli, Kalpini and Teal as core projects under evaluation as part of the consolidated feasibility study due for completion in the December quarter of 2021.