Name of the Project
Boorara gold project – Stage 1.

Location
The project is located 10 km east of Kalgoorlie-Boulder, in the Western Australia goldfields.

Project Owner/s
Horizon Minerals.

Project Description
A feasibility study has indicated a financially viable project.

The proposed mining project comprises predominantly oxide and transitional material contained within the project’s maiden ore reserve.

The Stage 1 openpit operation, which is based on the development of the Regal and Crown Jewel deposits, is expected to produce 159 000 t of ore, producing 9 500 oz of gold over a six-month mine life.

Mining will be conducted using conventional truck-and-shovel operations and will initially be free dig near the surface.

Ore from the openpit operation will be toll-milled at Golden Mile Milling’s one-million-tonne-a-year Lakewood mill, which is located about 7 km from the Boorara operation. The ore will be processed in monthly campaigns under Horizon’s supervision to allow for mill-grade reconciliation data to be compared against the reserve and resource models.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value of A$2.8-million.

Capital Expenditure
The project has low upfront capital costs of A$440 000.

Planned Start/End Date
Horizon Minerals made a final investment decision to proceed with mining of the project in July 2024.

Mining is envisioned to occur over 14 months, and processing over 19 months.

Latest Developments
Horizon has confirmed that it will imminently start with preproduction works, followed by mining ramp-up in the Boorara openpit.

The pit was previously mined in 2016 for 30 239 t grading 1.73 g/t gold.

This ore was processed at the Greenfields mill, while an additional 13 095 t of gold grading 0.68 g/t gold was stockpiled.

Mining from three other pits in 2020, including the Crown Jewel and Regal deposits, resulted in 267 000 t of ore being extracted at a grade of 1.23 g/t, which was treated at the Lakewood mill.

Horizon has applied knowledge gained from the prior mining to the current resource model, which, coupled with existing site infrastructure, significantly derisks the project from a mining perspective.

Boorara’s latest mineral resource estimate comprises 10.5-million tonnes of gold grading 1.27 g/t for 428 000 of contained ounces.

Horizon has already awarded mining services and ore haulage contracts to Hampton Transport Services on competitive terms, with no mining contractor payments due until first gold has been poured and sold with funds received.

Hampton and Norton Gold Fields will process ore at the Paddington operation. The Paddington mill is located 35 km north of Kalgoorlie and remains the central hub for Norton’s gold processing operations in the Goldfields region.

Horizon will provide management oversight and technical services support, with the contractor undertaking the works. The company has appointed a senior site executive and quarry managers, as well as technical positions.

The first gold pour is expected in October, following which the mine can generate a cash flow of A$30-million at a A$3 600/oz gold price over its lifetime.

Key Contracts, Suppliers and Consultants
BM Geological Services (geology and resource estimates); Green Geotechnical (geotechnical assessment); Minecomp (mining and ore reserve); ALS Metallurgy and Bureau Veritas Minerals (metallurigical testwork); Rockwater (hydrology and hydrogeology); Strategen-JBS&G Environmental Consultants (environmental studies); Hampton Transport Services (ore haulage); and Norton Gold Fields (ore processing).

Contact Details for Project Information
Horizon Minerals, tel +61 8 9386 9534 or email info@horizonminerals.com.au