Horizon Minerals Limited (HRZ.AX) To Retain And Advance Nimbus Silver-Zinc Project
Perth, Australia, Feb 11, 2021 - (ABN Newswire) - Horizon Minerals Limited (ASX:HRZ) is pleased to provide an update on the Nimbus silver-zinc project, adjacent to the Boorara gold mine, 15km east of Kalgoorlie-Boulder in the goldfields of Western Australia.
The Company has now completed a strategic review of the Nimbus silver-zinc project, inclusive of a detailed assessment of all previous Feasibility Study work completed to 2017. Several expressions of interest were received to acquire or earn-in to the project, however the Horizon board has now elected to retain the project on a 100% basis with a view to update and complete the Definitive Feasibility Study (DFS) with a fully funded dedicated independent technical team.
Nimbus Definitive Feasibility Study Update
Up until 2017, a significant amount of geological, metallurgical and engineering work had been completed on the Nimbus project with the completion of the comprehensive DFS put on hold due to depressed commodity prices.
This included a partial DFS completed by Sedgman in 2015 when the Nimbus Project was held by MacPhersons Resources Limited. The focus of this study was on capital and operating costs only, including plant design and flow sheets. Several ore processing options were reviewed based on extensive laboratory testwork.
The original strategy included a process to leach the silver to produce silver bars. Horizon's strategic review considered an alternative strategy to produce a high precious metal (silver) and zinc concentrate instead of silver bars. The production of a concentrate has potential benefits of a simplified processing circuit resulting in reduced capex and opex and to that end the Company will undertake an offtake process to obtain expressions of interest, indicative terms and potentially an offtake agreement for the sale of silver-zinc concentrate. Preliminary soundings have shown immediate interest from some traders, particularly due to the high silver content. On the basis of achieving commercially viable terms, the Company will then move to complete the DFS. Nimbus is located adjacent to the Boorara Gold Project which creates potential synergies in a complementary development scenario.
CSA Global has completed various due diligence, geological and mining studies between 2011 and 2015, and concluded in their August 2011 report that "_there is potential for future development of both oxide silver and primary sulphide zinc-silver projects, from the known mineralised zones around and below the existing pits and their extensions, and from discovery of new zones."
Prescribed Premise Licence and Works Approval
The Nimbus project already has a prescribed premise licence in place to treat 120,000 ore tonnes per annum and an existing works approval to expand to 480,000 tonnes per annum. The Company has recently completed an application for renewal to extend the current licence.
The Company has now commenced an independent technical and economic study of all previous work undertaken to evaluate options for the next steps in advancing the project. As part of the study, the high-grade lodes will be evaluated for potential early-stage development and concentrate production.
The Study is expected to be completed in the December Quarter 2021.
About the Nimbus silver-zinc project
The Nimbus silver-zinc project is located 15km east of the City of Kalgoorlie-Boulder, Western Australia, covers approximately 170km2 and is situated on Mining Leases, Exploration Licences and Prospecting Licences and include the Boorara gold project area.
Project highlights include:
- High grade silver resource of 260kt @ 774g/t Ag and 12.8% Zn contained in JORC 2012 Resources of 12.1Mt @ 52g/t Ag, 0.9% Zn and 0.2g/t Au
- Deposit remains open at depth and along strike with significant potential to increase existing silver-zinc resources with further drilling
- Significant regional exploration potential to find additional silver and other base metal deposits
- Close proximity to Kalgoorlie-Boulder and existing infrastructure
- Historical production of 3.6Moz of high-grade silver (352g/t)
Commenting on the Nimbus silver-zinc project, Horizon Managing Director Mr Jon Price said:
"While the Company's focus remains firmly on gold, the strategic review has confirmed the potential for significant long-term shareholder value creation by retaining the asset at a time of sustained improvements in silver and zinc prices. The independent DFS team will now focus on the technical aspects and economic evaluation of mining the high-grade lodes and producing a high precious metal (silver) and zinc concentrate at site for sale to potential offtake partners."
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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.
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