Teal Gold Mine - Production Guidance Upgraded
- Mining operations at Teal Stages 1 and 2 now complete with 230,000t of oxide and transitional ore at a claimed grade of 3.2g/t Au for 23,500 ounces mined
- Ore grade in line with the Reserve model, tonnage and metallurgical recovery above Feasibility Study estimates to date(see Note 1 below)
- Production guidance for the combined stages increased to 21,000 - 22,000 ounces at original All In Costs (AIC) guidance of A$1,000 - A$1,100 per ounce(see Note 1, 2 below)
- Second milling campaign at the Lakewood toll milling facility completed successfully with 26,600dt milled at a reconciled grade of 3.5g/t Au
- Reconciled gold production of 2,910 fine ounces at an improved 97.2% recovery with A$4.9m in gross revenue received at an average gold price of A$1,684/oz
- Completion of the final milling campaign expected in the current March Quarter 2018(see Note 1 below)
- Production and financial reconciliations for both stages of the pit expected in the June Quarter 2018(see Note 1 below)
Commenting on Teal, Intermin Managing Director Mr Jon Price said:
"While the project has not been without its challenges, Teal has more than delivered on its promises and it is extremely pleasing to see the mine perform well against Feasibility Study estimates."
"The Company is now in a strong position to fund an aggressive growth strategy. In 2018 this growth strategy means resource growth and new discoveries in one of the most productive goldfields in the world. We now look forward to delivering ongoing results from the 55,000m drill program underway and believe the key Anthill, Blister Dam and Teal project areas have the potential to deliver a significant step change for the business."
With the pre-strip complete at Teal Stage 2 in the December Quarter 2017, the focus to date has been on completion of ore mining from both Stage 1 and Stage 2 of the pit. As the pit progressed to the end of the design life, additional ore was identified within and below the design and was mined out where possible (see Figure 1 in link below).
On 10 March 2018, the final load of ore was hauled to the ROM pad and mine closure activities commenced.
In total, 230,000t of ore has been mined grading 3.2g/t for 23,500 ounces mined within a total volume of 2.21M bcm. This compares favourably with the 203,000t grading 3.2g/t Au for 20,700 ounces mined within a total volume of 2.11M bcm estimated in the Feasibility Studies for both stages.(see Note 1 below)
Based on the additional tonnage, expected grade and improved recovery from the operation, the Company has increased production guidance to 21,000 - 22,000 ounces with an All In Cost of A$1,000 - A$1,100 per ounce.
The second ore processing campaign at the 1Mtpa Lakewood toll milling facility (see Figure 2 in link below) was completed successfully and ran for 17 days up until 4 February 2018. Full reconciliations have been compiled with 26,632 dry tonnes of ore milled at a final calculated head grade of 3.5g/t Au. Plant metallurgical recovery exceeded expectations at 97.2% producing 2,910 fine ounces of gold. Average gold price received for the campaign was A$1,684 per ounce, generating A$4.9m in gross revenue.
The final milling campaign will be completed in March 2018 with expected treatment of approximately 50,000t. Final production and financial reconciliations are expected in the June Quarter.(see Note 2 below)
1 As announced to the ASX on 6 July 2016 and 6 September 2017
2 See Forward Looking and Cautionary statement on Pages 3 and 4
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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