Penny's Find JV Resource Update
- Resource definition and extension drilling completed at the Penny's Find gold project, 50km northeast of Kalgoorlie in the Western Australian goldfields
- The project is a 50:50 joint venture with Orminex Ltd (ASX:ONX) with Horizon's A$1M sole funding commitment now satisfied with future costs funded on a 50:50 basis
- A total of 21 drill holes were completed with 2,103m of RC and 2,765m of diamond to a maximum depth of 282m
- Drilling tested northern extensions and infilled a number of areas within the existing underground resource envelope with significant results received including:
o 5.0m @ 5.27g/t Au from 180.3m (P1_010)
o 3.7m @ 7.46g/t Au from 215.3m (P1_005)
o 2.7m @ 8.64g/t Au from 171.4m and 1.7m @ 17.91g/t Au from 178.9m (P1_007)
o 1.9m @ 13.95g/t Au from 251m (P1_009)
o 0.9m @ 23.56g/t Au from 216.7m (P1_006)
o 2.0m @ 8.47g/t Au from 227m (P1_008)
o 2.5m @ 7.45g/t Au from 226m (P1_020)
- Results demonstrated excellent width and grade continuity and improved geological confidence with mineralisation open along strike to the north and at depth
- Updated independent Mineral Resource estimate now compiled and stands at:
o 250,000t grading 5.22g/t Au for 42,000oz at a 1.5g/t Au lower grade cut-off
- Importantly, over 83% (up 19%) of the resource now in the Indicated Resource category (188kt grading 5.71g/t Au) with updated underground mine optimisation, design and economic evaluation underway
- A maiden Ore Reserve for Penny's Find is expected early in the December Quarter 2021
- Approvals for mine development are in place and a toll milling agreement executed for ore processing in the March Quarter 2022
Commenting on the resource update, Horizon Managing Director Mr Jon Price said:
"The JV partners have taken a very conservative approach with the new resource model and the latest drilling has provided increased confidence and higher JORC classification for reserve conversion. We now look forward to completing the updated underground mine optimisation and design for a development decision with our JV partners early in the December Quarter."
The Company acquired a 50% interest in the project from joint venture partner Orminex Ltd (ASX:ONX) for $1.5M and agreed to sole fund the first $1M in pre-development expenditure with the joint venture partners funding the project on a 50:50 basis thereafter. The project presents an early underground development and production opportunity to generate cash as the Company advances the longer-term consolidated Feasibility Study underpinning a stand-alone mill at Boorara.
The infill and extension program aimed to improve resource classification and test extensions along strike with excellent results and new mineralisation intercepted to the north. The deposit also remains open at depth and will be tested further from underground drilling positions during the mining cycle.
*To view tables and figures, please visit:
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