New gold producer books first revenue of $2.9m
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Shares in Horizon Minerals (ASX:HRZ) have climbed more than 13 per cent this morning to 17c after it reported that its first milling campaign had generated $2.93m in revenue.
The milling campaign produced 1,050 ounces of gold with an average sale price of $2,791 an ounce.
Horizon said 26,340 tonnes of ore from the Regal East trial pit was processed at a fully reconciled feed grade of 1.3 grams per tonne (g/t) gold, in line with expectations for the upper oxide ore zones near surface
It added that due to faster than expected mining rates in the shallow oxide zone, mining under its first-stage program was anticipated to be completed in September, five weeks ahead of schedule.
The grade is expected to increase with depth as mining advances into the larger, more consistent ore zones.
Monthly milling campaigns at the third party Lakewood Mill are scheduled through to January 2021.
The entire program is expected to produce 8,700 ounces of gold, which will generate $7m in cash at current gold prices.
Record high gold prices have certainly been a boon to gold companies, with Pantoro Limited (ASX:PNR) receiving firm commitments for a $50m share placement priced at 24c a share.
It will also seek to raise a further $5m through a share purchase plan for existing shareholders.
Proceeds will be used to maintain its drilling program while progressing development of its 50 per cent owned Norseman gold project.
The initial focus will be on expanded drilling at the Scotia Mining Centre to define extensions to the recent Panda discovery, strike extensions to the Lady Eleanor and Scotia orebodies and bringing high-grade depth extensions into ore reserve status.
Meanwhile, drilling at Predictive Discovery’s (ASX:PDI) NE Bankan project in Guinea has returned several wide, high-grade gold hits.
The top hit was 26m at 17.5g/t gold from 58m including 6m at 49.9g/t gold from 59m.
Results are pending from two reverse circulation holes drilled to complete the southern line over the mineralised footprint.
The company is also mobilising a diamond drill rig to test the full width of the gold mineralised zone from west to east.