Commenting on the latest drilling results, Horizon Minerals Managing Director Mr Jon Price said:
"The results continue to demonstrate that Binduli is a genuine contributor to our mine development and production pipeline as part of the consolidated Feasibility Study currently underway. The drilling has improved geological confidence and demonstrated excellent width and grade continuity over a 450m strike length and remains open in all directions. Further RC and diamond drilling is planned across the Binduli project area, located only 25km from our baseload Boorara gold project."
- Follow up 56-hole RC drilling program now completed at the Crake and Coote prospects, part of the 100% owned Binduli gold project area, 9km west of Kalgoorlie in the Western Australian goldfields
- The current Mineral Resource for Crake stands at 1.12Mt @ 1.59g/t Au for 57,700oz at a 1g/t lower grade cut-off
- Significant results received from Crake include:
o 3m @ 7.41g/t Au from 81m and 10m @ 1.78g/t Au from 102m (BRC19021)
o 5m @ 4.91g/t Au from 36m and 9m @ 1.58g/t Au from 65m (BRC19025)
o 3m @ 3.18g/t Au from 14m and 4m @ 2.47g/t Au from 55m (BRC19031)
o 3m @ 1.28g/t Au from 10m, 1m @ 2.91g/t Au from 17m, 1m @ 2.13g/t Au from 25m, 1m @ 5.19g/t Au from 32m and 14m @ 1.75g/t Au from 44m (BRC19012)
o 12m @ 1.65g/t Au from 32m (BRC19010)
o 10m @ 1.46g/t Au from 77m (BRC19029)
o 1m @ 3.00g/t Au from 57m and 7m @ 2.78g/t Au from 97m (BRC19027)
- Results continue to demonstrate both width and grade continuity across a 450m strike length with the mineralisation open along strike to the north, east and to the west at depth
- Mine optimisation and design work has commenced as part of the consolidated Feasibility Study due for completion in the June Quarter 2020
- Significant results received from Coote, 700m to the west include:
o 1m @ 8.18g/t Au from 40m and 1m @ 1.00g/t Au from 64m (CRC19006)
o 1m @ 5.10g/t Au from 53m (CRC19017)
o 1m @ 1.76g/t Au from 17m, 5m @ 1.40g/t Au from 24m and 4m @ 2.63g/t Au from 51m (CRC19018)
o 1m @ 2.70g/t Au from 9m, 4m @ 1.22g/t Au from 36m and 1m @ 1.03g/t Au from 59m and 1m @ 1.87g/t Au from 65m and 1m @ 1.06g/t Au from 91m (CRC19019)
o 1m @ 1.33g/t Au from 33m, 1m @ 1.83g/t Au from 43m, 1m @ 1.61g/t Au from 88m, 1m @ 2.10g/t Au from 96m and 4m @ 1.15g/t Au from 114m (CRC19005)
In 2018, the Company commenced drilling at the historic Crake prospect where previous work had located encouraging gold mineralisation within a porphyry host rock. The drilling totalled 85 RC holes for 8,096m, and produced an initial Mineral Resource Estimate of 1.12Mt @ 1.59g/t Au for 57,700oz at a 1g/t lower grade cut-off 1. An independent first pass mine optimisation of the resource showed positive results and highlighted areas where further drilling could improve geological confidence and extend the mineralisation.
In May the Company commenced a second stage follow up RC program to infill and test for shallower levels of gold mineralisation. A total of 42 holes for 3,102m were completed at Crake.
The geology at Crake is similar to the 390,000oz Janet Ivy open pit, located approximately 1,500m to the south, where the gold is hosted in a structurally controlled feldspar porphyry. At the nearby Fort William and Fort Scott open pits, where over 100,000oz have been produced to date, gold is hosted within sheared units of volcanics and clastic sediments.
At Crake, the gold mineralisation strikes NW and dips shallowly to the SW. A poorly developed southern plunge is tentatively interpreted. The gold lodes are often tabular shaped and 20m thick but can blow out to >60m width. High grade shoots appear to result from intersecting structures. The Crake drilling focussed on a mineralised, variably altered pink porphyry with minor amounts of pyrite and magnetite. Higher grades usually coincide with stronger pyrite mineralisation (up to 3% by volume).
Summary of Results
The recent Crake results (Figure 2) have good alignment with the current mineralisation model and gives greater confidence in the block model and grade. Most holes intersected +1g/t Au and finished within a barren volcanic footwall schist. Several eastern holes intersected shallower, up dip, mineralisation largely outside the resource area and warrants follow up drilling to help close it off. Examples of this include:
o 3m @ 3.77g/t Au from 37m (BRC19022)
o 12m @ 1.65g/t Au from 32m (BRC19010)
o 2m @ 3.62g/t Au from 35m (BRC19002)
On the western side, several deeper holes returned encouraging levels of well-developed and consistent mineralisation that highlight the deeper resource potential. Examples of this include:
o 3m @ 1.70 g/t Au from 88m and 7m @ 2.78 g/t Au from 97m (BRC19027)
o 3m @ 7.41 g/t Au from 81m and 10m @ 1.78 g/t Au from 102m (BRC19021)
o 5m @ 2.08 g/t Au from 82m (BRC19019)
Composite RC samples were submitted to Independent Metallurgical Operations for sighter metallurgical testwork. Overall gold recoveries were high averaging 96% with gravity recoverable gold very high at over 50% for both oxide and fresh ore samples with low reagent consumption observed.
The Binduli project area is in close proximity to both Coolgardie and Boorara, with several processing options being assessed as part of the consolidated Feasibility Study. Updated resource modelling, mine optimisation and design work for the Crake prospect are now underway and further RC and diamond drilling will be completed in coming quarters to test areas currently outside the resource envelope and provide further structural information on the orebody.
At the Coote prospect, the Company drilled 14 holes for 1,246m to test historic high grade results and some step out drilling was also conducted (Figure 3). The geology is similar to Crake and Janet Ivy where gold is found within a mineralised pink porphyry. The mineralisation encountered to date is encouraging but appears to be narrower than Crake.
Further exploration and resource drilling has been planned at both Crake and Coote. An updated resource from Crake will be part of the ongoing Feasibility Study. A Mining Lease Application is being progressed over parts of E26/168. In addition, high priority targets including Darter and Honeyeater will be tested as part of the ongoing greenfields exploration program.
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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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