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Horizon Minerals (ASX:HRZ) is preparing to process its first ore from the Boorara Gold Project in Western Australia, less than six months after it first approved development work. It will be focusing on the project’s four open pits.
The resource hosted by all four is estimated at 1.24 million tonnes at 1.24 grams per tonne (g/t) of gold for 49.5 kilo ounces, with the project itself located 15 kilometres east of Kalgoorlie-Boulder.
Several parties will be contributing to the mining process, which is estimated to occur over the next 14 months. Firstly, contracts for mining services and ore haulage work have been awarded to Hampton Transport Services Pty Ltd, with payment to be received after the first solid gold pour is sold.
Additionally, processing is estimated to occur over 19 months at Norton Gold Fields’ Paddington plant through an Ore Sale Agreement (OSA), aiming to bring in $30 million in estimated free cashflow – given a gold price of A$3,600 per ounce.
Horizon managing director and CEO Grant Haywood said he was pleased the company had reached this important stage.
“It is very pleasing that we are transporting our first ore delivery from Boorara, with first revenue due shortly,” he said. “This milestone has been achieved despite the tight labour market during our ramp up phase and some inclement weather.”
He added: “We are now fully manned up and the team has been making good progress. We look forward to ongoing gold production from Boorara.”
Horizon has been trading at 3.9 cents.
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