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Horizon Minerals Limited (HRZ.AX) Half Yearly Report and Accounts

·7-min read
Horizon Minerals Limited
Horizon Minerals Limited

Horizon Minerals Limited (HRZ.AX) Half Yearly Report and Accounts

Perth, Australia, Mar 2, 2021 - (ABN Newswire) - Exploration activities continued during the period across Horizon Minerals Limited's (ASX:HRZ) 100% owned tenure in the Goldfields of Western Australia. The Company focussed mainly on reserve conversion drilling at Binduli (Crake), Teal (Jacques, Peyes, Teal East) and Rose Hill at Coolgardie. A total of 189 RC holes for 14719m and 12 Diamond Drillholes for 1138.2m were completed. The drilling was mainly infill in nature, with some improvements in the block model grade and definition being observed in areas of low density drilling. Resource updates are due in 2021.

Two advanced stage exploration projects were also drilled to help build the resource towards a mineral estimated resource in 2021. These were at Binduli (Coote) and Baden Powell where a total of 46 RC holes for 3622 meters were completed. The results to date were positive with consistent gold mineralisation being observed. Greenfields style exploration was also completed at Binduli (Honeyeater, Darter), Teal (Wills Find and Yolande) for a total of 39 RC holes for 3287m.The results were mixed, with both Yolande and Darter failing to return economic mineralisation. At Windanya, a small air core (interrupted) program of 18 holes for 751m was completed. The program resumed in January 2021. Additional exploration work completed included 2 gravity surveys at Yarmany and Kanowna South. A co-operative effort between the GSWA and UWA also completed 6 additional magneto-telluric (MT), part of a district scale MT survey, at the Nimbus area, east of Kalgoorlie. The survey covers Binduli-Teal, Black Flag and Balagundi-Kanowna South.

Project reviews for Golden Ridge and Gunga West were completed by independent consultants who indicated that both deposits had marginal economics with a pit cutback or extension scenario. Further work was recommended.

Target generation studies were completed for all the prospect areas and POW's lodged.

For details on the drilling programs, we refer you to the announcements released on the ASX and on the Company's website (www.horizonminerals.com.au). Mine Development Mining at the Boorara Gold Mine, 10km east of Kalgoorlie-Boulder in the Western Australian goldfields, commenced in April 2020, with stage 1 mining completed during the half in August 2020, six weeks ahead of schedule. Three trial pits were completed at each of the Regal East, Regal West and Crown Jewel deposits with total volume mined of 513,000 BCM. Ore mined, including both high grade and low grade, totalled 267,000t at a mine claimed grade of 1.23g/t Au, 25% above the global resource grade of 0.97g/t Au.150,000t has been hauled to the Lakewood toll milling facility with 120,000t treated to date.

Milling campaigns 2 and 3 occurred during the half. The second milling campaign commenced on 31 August 2020 with two ore parcels totalling 46,700t processed back-to-back from Regal West and Regal East pits.

Milling performance was excellent with throughput averaging 90tph, high gravity recovery and an overall calculated gold recovery of 95.1%. Gold produced from the campaign totalled 1,845 fine ounces with all gold sold at an average price of A$2,654 per ounce.

The third milling campaign commenced on 5 November 2020 comprising ore from the Crown Jewel, Regal west and Regal east trial pits. Milling performance has been excellent with throughput averaging 87tph, high gravity recovery and an overall calculated gold recovery of 95.0%.

Mill reconciliation totalled 50,274 dry tonnes processed at a reconciled mill grade increasing with mine depth to 1.62g/t Au. Overall gold recoveries exceeded expectations with a calculated recovery of 95.0%, above the modelled recoveries of 91.0%. Gold produced from the campaign totalled 2,491 fine ounces with all gold sold at an average price of A$2,466 per ounce. The final milling campaign with be completed early in the next half comprising the remainder of Regal East and trial milling some low-grade ore, following which an overall mine to mill reconciliation can be conducted and financial outcomes of stage 1 mining reported. The remaining low grade stockpiles will remain at site for treatment at the proposed Boorara Mill in the future. All mine rehabilitation and removal of contractor infrastructure has been completed.

The feasibility study progressed, including an update to the high grade Rose Hill Resource which now stands at:

- 286kt grading 2.0g/t Au for 18,300ozat a 0.5g/t Au cut-off grade(open pit), and
- 507kt grading 4.6g/t Au for 75,000oz at a 2g/t Au cut-off grade (underground)

In addition, work progressed on geotechnical, metallurgical, infrastructure, approval and evaluations on Teal, Binduli, Rose Hill and Kalpini in relation to the feasibility due in calendar year 2021.

Nanadie Well Copper - Gold Project Joint Venture As announced to the ASX on 15 September 2020, Horizon divested 100% of its interest in this project to Cyprium Metals Limited (ASX:CYM) for a total consideration of $1.5Min cash and shares.

Richmond Vanadium Project In December 2016,the Company executed a binding Heads of Agreement ("HoA") with Richmond Vanadium Technology Pty Ltd ("RVT") to form a strategic joint venture ("AXF JV") covering the Company's Richmond Vanadium project in Queensland (refer ASX announcement dated 13 December 2016). During the period, a positive Pre-Feasibility Study ("PFS") was released focussed on the development of the Lilyvale vanadium deposit. The PFS was based on an initial 20 year life at Lilyvale demonstrating a financially viable project with the following key metrics: ?? Shallow open pit mining producing 81.2Mt at a fully diluted grade of 0.49% V2O5 for 15.8Mt of 1.82% V2O5 concentrate with concentrate production on site.

- Refining overall recovery at 86.1% produces 254,000 tonnes of 98% V2O5 commercial grade flake with average annual production of 12,700t V2O5.

- Modest up-front capital costs of US$157.4Mand operating cash costs of US$5.53/lb of 98% V2O5 flake.

- At current spot price of US$7.10/lb V2O5, project generates NPV8% of US$150M.

The immediate next steps are to finalise the optionality within the PFS to the next level of study where required in areas such as determining the optimal power supply for the project along with progressing environmental studies and preparing the documents for government permitting and approvals.

In parallel, discussions shall continue with potential offtake partners in conjunction with assessing the way forward in relation to the project, including financing or assessing other options for maximising shareholder benefit from the project.

To view the half year report, please visit:
https://abnnewswire.net/lnk/49Y3Q4IV


About Horizon Minerals Limited:


Horizon Minerals Limited (ASX:HRZ) 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.

Contact:

Jon Price
Managing Director
T: +61 8 9386 9534
E: jon.price@horizonminerals.com.au

Michael Vaughan
Media Relations - Fivemark Partners
T: +61 422 602 720
E: michael.vaughan@fivemark.com.au

Source:
Horizon Minerals Limited

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