Proactive’s Tylah Tully brings you Just the Facts after Horizon Minerals Ltd (ASX:HRZ) started mining operations at its Boorara Gold Project, adjacent to the Super Pit in the Western Australian Goldfields.
With mining underway, the company is on track to pour its first gold bars by October this year. And the project’s advancements couldn’t come at a better time, as gold prices in Australian dollars soar. Currently, the spot price per troy ounce is sitting at $3700 dollars.
The company’s approved mining plan targets the extraction of 1.24 million tonnes of ore at an average grade of 1.24 grams per tonne gold, yielding around 49,500 ounces of gold. The mining phase is expected to last just over a year, potentially generating $30 million in free cashflow based on a gold price of $3600 per ounce.
While focusing primarily on gold, Horizon is also progressing its Nimbus Silver-Zinc Project in Western Australia. It recently completed a concept study suggesting a favourable economic development pathway for Nimbus, driven by current silver and zinc prices.
A Program of Work has been approved to drill the exploration target at the project planned for next year. The company says it’s reached a major milestone at Boorara, as it commences its journey to gold producing.
“It is very pleasing to see mining accelerating at Boorara, with all activities being undertaken ahead of schedule and safely, which is a credit to the site team and our contract business partners, managing director and CEO Grant Haywood said.
“We are eagerly awaiting mining progressing to expose first ore in September and pouring gold bars in October to give us first revenue from Boorara in this strong gold price environment. “This is a major milestone for Horizon as we commence our journey to be a long-term sustainable gold producer, delivering significant cashflows into the business to create further value through our significant portfolio of assets.”