Horizon Minerals Ships First Ore from Boorara Gold Project

Horizon Minerals has reached a key operational milestone with the first ore delivery from its Boorara gold project in Western Australia, set to be processed at Norton Gold Fields’ nearby Paddington mill this month.

The initial stockpile of 54,380 tonnes of ore has undergone assaying and metallurgical test work, with an expected grade of 0.8 grams per tonne (g/t) of gold. Horizon anticipates that grades will improve as mining progresses in the coming months.

“It’s very satisfying to transport our first ore from Boorara, with first revenue expected shortly,” said Horizon managing director and CEO Grant Haywood. “This achievement comes despite challenges such as the tight labour market during the ramp-up phase and some inclement weather. Our team is now fully staffed and making excellent progress, and we look forward to steady gold production from Boorara.”

Mining at Boorara is planned to continue for 14 months, with processing extending over a 19-month period. The company expects to pour its first gold at Paddington mill in October under an ore sale agreement, which is projected to generate $30 million in free cash flow at a gold price of $3,600 per ounce.

The agreement specifies that within five days of delivering the first ore to the Paddington run-of-mine pad, Paddington will pay Horizon 50% of the gross revenue, less estimated processing costs based on the determined grade of each stockpile. After the full treatment of the stockpile, a final payment will be made to Horizon based on the determined grade, moisture, and metallurgical recovery, less agreed processing costs.

Horizon approved Boorara’s development in late July, which includes mining four open pits containing 1.24 million tonnes of ore at 1.24 g/t gold, yielding an estimated 49,500 ounces.

In addition to Boorara, Horizon’s Phillips Find project is progressing well and is expected to deliver its first ore to the Greenfields mill in February 2025.

Earlier this year, Horizon announced plans to merge with Poseidon Nickel to create a new mid-cap gold producer, targeting an annual production of 100,000 ounces in Western Australia.