Gold projects to bulk up Horizon’s inventory
Horizon Minerals (ASX:HRZ) is advancing its strategy of consolidating advanced, complementary gold development assets close to its proposed Boorara Mill with the acquisition of three gold projects in Western Australia’s Goldfields region.
The Bulong South, Glandore and Cowarna projects comprise 24 granted mining, prospecting, exploration and miscellaneous licences covering 180sqkm close to its Boorara project.
Notably, the Bulong South project that is just 10km east of Boorara includes the Cannon underground deposit that has an established resource of 142,000t grading 5.17 grams per tonne (g/t) for 24,000oz of contained gold.
All three projects have significant exploration potential with target review and drill planning now underway. Drilling is expected to begin in the September quarter.
“Horizon’s core focus remains firmly set on developing a standalone gold production business in the Kalgoorlie and Coolgardie regions and this significant acquisition aligns with our strategy of further regional consolidation of advanced, complementary development assets in close proximity of the proposed Boorara Mil,” managing director Jon Price said.
He noted that Cannon is a near-term development opportunity that will be included in the consolidated feasibility study as it can provide high-grade ore feed in the early years to complement the base load Boorara deposit.
“We also see the potential for significant resource growth and exploration upside from the Bulong South, Glandore and exciting Cowarna project areas with multiple walk-up drill targets on major geological structuresm,” Price added.
Horizon is paying $5m for the three gold projects.
Besides an established resource that remains open at depth and to the north and south, Cannon also has a 20,000oz ore reserve and is the subject of a 2019 feasibility study that outlines positive economic results at a $1,750 per ounce gold price.
This makes the deposit particularly attractive given that gold is currently priced at US$1,869/oz ($2,404).
Glandore, located 14km east of Boorara, has multiple advanced open pit and underground exploration targets with historic drilling results awaiting follow up.
Rounding up the gold projects, the 138sqkm Cowarna project sits immediately east of the emerging Mt Belches gold project within Silver Lake Resource’s Mt Monger gold operation with walk-up drill targets within the orogenic banded iron formation units to the southeast.
Alligator Energy (ASX:AGE) has also joined Horizon on the acquisition trail, picking up an exploration licence with existing uranium mineralisation that is adjacent to its Samphire project in South Australia.
EL6350 is considered to be prospective for paleochannel hosted mineralisation as seen at Blackbush and Plumbush. It also includes historical drilling that intersected up to 7.3m grading 445 parts per million uranium.
The company noted that the Plumbush deposit, which is non-JORC compliant, remains open and remains largely untested on the northern border of the tenement.