Horizon Minerals (ASX:HRZ) announced it will proceed with the development of its Boorara gold project.
In a press release on Monday (July 29), the company said its board has approved a final investment decision for the asset. According to Horizon, Boorara is fully permitted, with all statutory approvals in place.
Located in Western Australia, Boorara is 10 kilometres east of the Super Pit gold mine, one of the country’s largest open-pit gold mines. Boorara previously underwent a trial-mining period in 2016.
According to Horizon, the property’s independent ore reserve estimate stands at 1.24 million tonnes at 1.24 grams per tonne gold for 45,800 ounces recovered at a 92.5 percent metallurgical recovery rate.
The mine is projected to generate cashflow of AU$30 million at an AU$3,600 per ounce gold price over its operational run, with an estimated mine life of 14 months and processing span of over 19 months.
Ore will be processed by Paddington Gold under an ore sale agreement announced on May 6.
“Mining at Boorara is a significant milestone for the Company and will make Horizon the newest gold producer in Australia,” said Managing Director and CEO Grant Haywood. “We are focused on making Boorara a safe and efficient mining operation to create value through generating cash and the first step in sustainable gold production for Horizon.”
He added that the company also wants to move forward at its development assets, which host a 1.8 million ounce mineral resource. It aims to pursue work there after resuming production at Boorara.
Horizon said mobilisation at Boorara will start immediately, and that preproduction works will begin thereafter.
Grade-control drilling will start at in the first half of August, and mining will begin ramping up midway through the month. Horizon said the first gold pour at Boorara is anticipated in October of this year.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.