First Boorara Milling Campaign Completed Generating A$2.93M Revenue
-First milling campaign comprising ore from the Regal East trial pit is now complete
- Ore processed from the first milling campaign totalled 26,340t at a fully reconciled feed grade of 1.32g/t Au, in line with expectations for the upper oxide ore zones near surface
- Mill performance exceeded expectations with excellent throughput rates, 40% gravity recovery and an overall calculated gold recovery of 93.8%
- Gold production totalled 1,050 ounces generating A$2.93 million in revenue with an average sale price of A$2,791 per ounce
- Faster mining rates achieved in the shallow, oxide zone will see mining completed in September 2020, five weeks ahead of schedule
- Mined grade expected to increase with depth as mining advances into the larger, more consistent ore zones
- The next milling campaign is scheduled to commence in late August, comprising ore from the Regal East and Regal West pits
- Pit mapping and detailed geological monitoring is continuing to enable the compilation of an updated resource model and maiden reserve as part of the consolidated Feasibility Study due for completion in H1 2021
- Monthly milling campaigns scheduled through to January 2021 to treat 159,000t of ore with a forecast mined grade of 1.86g/t Au for 8,700 ounces recovered generating $7m cash at current gold prices
Commenting on the successful milling campaign, Horizon Managing Director Mr Jon Price said:
"It is extremely pleasing to see the first mine to mill reconciliation coming in within expectations for the upper oxide areas of the orebody. This completes a very successful first phase of activity with mining rates well ahead of schedule, mined grades increasing and completing our first gold sales into this very high Australian gold price environment."
"This cash generating trial is an important step in the process of improving our understanding of this very large mineralised system at Boorara and de-risking the larger scale development being assessed as part of the consolidated Feasibility Study."
The first milling campaign commenced on 16 July 2020 and ran for 12 days to 27 July 2020 with first gold poured on 23 July 2020. Milling performance has been excellent with throughput averaging 95tph, gravity recoveries at 40% and reagent consumption within expectations.
Mill reconciliations have now been completed with 26,340 dry tonnes processing at a reconciled mill grade of 1.32g/t Au. The grade was in line with expectations for the near surface upper oxide zones of the orebody in the Regal East pit where the ore blocks are less consistent than the higher grade blocks presently being mined deeper in the Regal East pit (Figure 2*).
Overall gold recoveries exceeded expectations with a calculated recovery of 93.8%, above the modelled recoveries of 91.0%.
Gold produced from the campaign totalled 1,050 fine ounces with all gold sold at an average price of A$2,791 per ounce generating revenue of A$2.93 million. The next milling campaign comprising higher grade ore parcels from the Regal East and Regal West pits is scheduled for commencement in late August. The ore parcel from the Crown Jewell pit is scheduled to commence in October.
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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.
Horizon Minerals Limited