Perth, Australia, June 16, 2020 - (ABN Newswire) - Horizon Minerals Limited (ASX:HRZ.AX - News) ("Horizon" or the "Company") is pleased to announce drilling results and an updated Mineral Resource estimate for the Richmond - Julia Creek ("Richmond") vanadium project located in Central North Queensland (Figure 1*).
- Highly successful infill drilling completed at the Lilyvale deposit, part of the Richmond - Julia Creek Vanadium Project in Central North Queensland 400km east of Mt Isa
- The project is a Joint Venture between Horizon Minerals Ltd and unlisted Richmond Vanadium Technology Pty Ltd ("RVT") with RVT earning up to 75% by spending $6 million to March 2021 inclusive of a Feasibility Study
- Lilyvale mineralisation sits within a shallow band of oxide marine sediments from surface to 15m depth enabling cost effective low impact mining, significant upgrade potential at the site followed by conventional concentrate treatment to produce electrolyte or flake
- A total of 333 AC holes for 7,817m of resource drilling were completed in 2019
- Typical significant intercepts received included:
o 9m @ 0.69% V2O5 from 2m (L234)
o 10m @ 0.60% V2O5 from 3m (L186)
o 9m @ 0.64% V2O5 from 4m (L150)
- Results demonstrated excellent grade continuity across the entire strike length
- Updated independent Mineral Resource estimate now compiled for Lilyvale and stands at:
o 560Mt grading 0.48% V205 for 2.6Mt V205 at a 0.30% V205 lower grade cut-off
- Over 76% now in the Indicated Resource category
- Updated global Mineral Resource estimate for Richmond - Julia Creek stands at:
o 1.8Bt grading 0.36% V205 for 6.7Mt V205 at a 0.30% V205 lower grade cut-off
- Commercial scale metallurgical testwork on 1.5 - 2% Lilyvale concentrate well advanced
- Pre-Feasibility Study centred on commercial evaluation and ore reserve generation from the updated mineral resource will be completed in June for review and expected release in the September Quarter 2020
Commenting on the Richmond - Julia Creek project, Horizon Managing Director Mr Jon Price said:
"Infill drilling at Lilyvale has demonstrated the improved scale and quality of the resource that can be readily upgraded on site for conventional downstream processing. Lilyvale alone can provide globally significant electrolyte and flake product to meet the increasing demand for both the steel and emerging energy storage markets. We look forward to the completion of the commercial evaluation as part of the Feasibility Study"
In March 2017, the Company entered a strategic development Joint Venture ("JV") with Richmond Vanadium Technology Pty Ltd ("RVT"). The JV covered Horizon's 100% interest in the Richmond vanadium project comprising 1,550km2 of Cretaceous Toolebuc Formation (Figure 2*).
RVT completed the initial earn in period (A$1 million to earn 25% interest) in March 2018 and have commenced the second stage expenditure commitment of A$5 million over 3 years inclusive of a Feasibility Study to earn a further 50% interest in the project.
Since commencement of the JV, RVT have conducted extensive metallurgical test work initially focussed on upgrading the run of mine ore prior to downstream processing of the concentrate. Results from the concentration tests using simple screening, gravity and flotation mineral dressing techniques produced excellent results with the concentrate comprising 21% of the original mass at an improved grade of 1.6% V2O5 and a 73% recovery. The concentrate produced also had a greatly reduced calcium content enabling a number of downstream processing options to be pursued.
Downstream pilot plant testing utilising conventional proven roasting and acid leaching techniques produced commercial grade vanadium pentoxide with acceptable recoveries.
With the success of the pre-concentration and downstream test work, work has now advanced to simulated production tests. These tests are to be conducted with semi-industrial scale samples through the entire process flowsheet from samples to final product. An additional 3-4t of new samples have been dispatched to the metallurgical laboratory to ensure the most representative samples. Results from these advanced tests are expected in the September Quarter 2020.
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About Horizon Minerals Limited:
Horizon Minerals Limited (ASX:HRZ.AX - News) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.
Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.
Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.
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