Half Year Report to December 2019
Key developments were as follows:
An 18,000m grade control infill drilling program was completed at Boorara during the Period enabling the compilation of an updated geological model for the first 50m of the resource. Mine optimisation, evaluation and design will then be completed with the aim of mining two to three starter pits in 2020 utilising contract mining and third party toll milling.
Statutory approvals, discussions with contractors and third party milling operators are well advanced with operational readiness work on track for mine commencement in the June Quarter 2020 and first production in the September Quarter 2020.
In addition, mine evaluation work continues at Binduli, Rose Hill and Teal as part of the Feasibility Study due for completion in the December Quarter 2020.
Exploration activities continued during the period across the Company's 100% owned tenure in the Goldfields of Western Australia. The Company completed 5,800m of regional Reverse Circulation (RC) drilling at prospects including Binduli, Windanya, Black Flag and Baden Powell with encouraging results.
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).
Results from the drilling were compiled and a resource update announced for the Crake gold project during the period. Further resource updates are expected in the June Quarter 2020.
Menzies Gold Project
During the period, the Company divested its 100% interest in the Menzies and Goongarrie gold projects to Kingwest Resources Limited (ASX:KWR) ("Kingwest") for a total consideration of A$8 million. The Company received 20 million ordinary shares in Kingwest and $1.75 million in cash on completion. A further 10 million shares and $1.625 million in cash is payable by Kingwest 18 months following settlement.
Nanadie Well Coppert - Gold Project Joint Venture
As announced to the ASX on 18 November 2019, Horizon received a notice of withdrawal from Minex (West) Pty Ltd, a 100% subsidiary of Mithril Resources (ASX:MTH) with the project now returned to Horizon on a 100% basis.
The Company now intends to complete a detailed geological review of the project ahead of field reconnaissance work and an RC drilling program to test a number of walk up targets and to ensure the project tenure remains in good standing.
Northern Star asset swap
As announced to the ASX on 12 September 2019, the Company reached agreement with Northern Star Resources Limited ("Northern Star") to an exchange of tenements in the WA goldfields for nil cash consideration. The transaction saw Horizon divest its 100% interest in the Anthill, Blister Dam, New Mexico, White Flag and Kanowna North tenements and acquire 100% interest in Northern Star's Rosehill, Brilliant North and Gunga West projects in Coolgardie and the Golden Ridge, Balagundi, Abattoir and Mt Monger projects in Kalgoorlie.
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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.
Mithril Resources Limited
Horizon Minerals Limited