Horizon Minerals (ASX: HRZ) is going ahead with development of the Boorara gold mine in Western Australia, located only 10 km east of Northern Star Resources’ Super Pit gold mine, the state’s biggest.
The company said the board’s investment decision allows for an immediate start of pre-production works, with key technical and management roles already filled, including site senior executive and quarry manager.
The move is a significant milestone for the company, managing director and chief executive Grant Haywood said. He added the development will make Horizon Australia’s newest gold producer.
“We are seeking to unlock the significant latent potential within our extensive portfolio of development assets, which hosts a 1.8 million ounce mineral resource,” Haywood said.
Mining at the open pit will go on for an initial period of 14 months, and processing for 19 months. First gold pour is expected in October, it said. Capital costs are estimated at just A$450,000.
Horizon said first contracts for mining and ore haulage services have been awarded, but payment will happen only when the first gold pour is sold and funds received.
The company will oversee management and technical services as construction of Boorara progresses. Horizon noted that key technical and management roles have already been filled, including site senior executive and quarry manager.
Boorara was trial-mined in 2016 and generated 30,239 tonnes of ore, grading 1.73 grams gold per tonne. Processing added 13,095 tonnes of gold grading 0.68 gram gold, which was stockpiled.
The pit’s latest mineral resource estimate comprises 10.5 million tonnes grading 1.27 grams gold per tonne, for 428,000 contained ounces.
Following the resumption of production at Boorara, the company said it aims to develop other projects in parallel to establish Horizon as a long-term, sustainable gold producer in a favourable gold price environment.
When the price is right
Record-high gold prices have sparked M&A in the Australian bullion sector. Evolution Mining (ASX: EVN) in December agreed to buy an 80% stake in the Northparkes copper-gold mine in New South Wales from Chinese miner CMOC Group. That followed the high profile acquisition of Newcrest by gold giant Newmont (NYSE: NEM) for more than $15 billion.
Red 5 (ASX: RED) acquired in February Silver Lake Resources to build a mid-tier gold producer valued at $1.5 billion, and Perseus Mining (ASX, TSX: PRU) took over OreCorp in April.
Shareholders in Canada’s Karora Resources (TSX: KRR; US-OTC: KRRGF) voted last week in favour of the company’s acquisition by Australia’s Westgold Resources (ASX: WGX). The deal creates a Western Australian gold producer with an annual output of over 400,000 ounces of the precious metal per year.
Be the first to comment on "Horizon Minerals to become Australia’s newest gold producer "