Horizon Minerals to resume gold production with new ore deal
May 06, 2024 at 10:31 pm IST
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Horizon Minerals Ltd (ASX:HRZ) CEO Grant Haywood sits down with Jonathan Jackson in the Proactive studio to discuss a binding ore sale agreement with Paddington Gold Pty Ltd, a subsidiary of Norton Gold Fields Ltd, for the processing of 1.4 million tonnes of ore from Horizon’s Boorara Gold Project. This ore will be treated at Paddington’s 3.8 million tonnes per annum capacity mill, approximately 56 kilometres from Boorara in Western Australia. The agreement covers a processing period of 22 months starting in the September 2024 quarter.Under the terms of the agreement, Horizon will manage mining and transportation of the ore to Paddington’s mill. Payments will be made to Horizon within five days of ore delivery, amounting to 50% of gross revenue after deductions for estimated processing costs and royalties. The final revenue will be adjusted based on ore grade, moisture, and recovery rates after complete processing.Haywood, highlighted the deal as an opportunity to leverage the high gold price for significant cashflow, aiding the company’s path to sustained gold production. Horizon is also progressing other projects, preparing for further near-term production, and progressing a merger with Greenstone Resources to expand production capabilities.The company is working on restarting mining at the fully permitted Boorara Gold Project, last mined in 2020, and is finalising contracts for mining and haulage. Additionally, Horizon is finalising a toll milling contract with FMR Investments for the Cannon Gold Project and completing the reserve estimate for Boorara.
Contact Details
Proactive Investors
Jonathan Jackson
+61 413 713 744
jonathan@proactiveinvestors.com
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Horizon Minerals Limited is a mid-tier gold producer. The Company is engaged in exploration for and mining of gold and other mineral resources. The Companyâs segments include Vanadium/Molybdenum tenements and gold tenements. It holds 100% interest in gold projects in the Kalgoorlie and Coolgardie regions including the 507,000 oz Boorara project and 548,000 oz in satellite projects in close proximity. The Boorara Project is divided into three project areas, namely Royal (Southern), Crown Jewel (Central), and Regal (Northern) deposits. The project is located approximately 10 kilometers east of Kalgoorlieâs Pit gold mine located on the eastern edge of the city of Kalgoorlie-Boulder, Western Australia. The Company controls a number of prospective tenements within the Kalgoorlie region with these project areas including the Greater Boorara-Cannon project area, Lakewood, Binduli-Teal project area, Kalpini, Baden Powell, and windanya, Balagundi-Kanowna South and Black Flag.