Horizon Gold Ltd (ASX:HRN, OTC:HZGLF, FRA:HO0) earlier this week outlined progress at the Gum Creek Gold Project in Western Australia, where recent drilling and development work continue to support its transition toward production.
Managing director Scott Williamson said the project represents a development opportunity rather than a pure exploration play, noting that Gum Creek had previously produced around 1 million ounces before being placed on care and maintenance approximately two decades ago. He explained that the asset is now being reassessed under significantly higher gold prices, with “very strong economics at today’s gold prices”.
Williamson stated that Horizon Gold is advancing plans for an initial open-pit, free-milling operation targeting production of around 100,000 ounces per annum. He added that this base case could be enhanced through the inclusion of underground mining at the Omega and Kingfisher prospects, where recent drilling has returned higher-grade mineralisation.
He indicated that these underground zones, grading approximately 3 to 4 grams per tonne, could complement the open-pit material, which averages closer to 1.5 grams per tonne. According to Williamson, this would “increase the grade and push production above 100,000oz per annum” over time.
The company recently completed a $30 million capital raise, with approximately $20 million allocated to exploration. Williamson said the focus is not on increasing total ounces but on demonstrating the scale and quality of underground potential. Multiple drill rigs are currently active across Kingfisher, Omega and open-pit extensions, with all deposits remaining open along strike or at depth.
Horizon Gold is also progressing permitting and final study work, with a final investment decision targeted in the new year. Williamson noted that early production options, including toll treatment, are under consideration and could accelerate the timeline to first gold.
He highlighted that the company is currently trading at around $100 per ounce, compared with $200 to $300 per ounce for peers at a similar stage. Williamson suggested that this valuation gap reflects limited market awareness, adding that the project is “much closer to being able to turn this mine back on” than is widely recognised.
With a potential mine life of at least 10 years and exploration upside that could extend operations to 20 years, Horizon Gold is positioning Gum Creek as a long-term gold production asset in a well-established Western Australian mining region.
Key highlights
- Horizon Gold Ltd progressing the Gum Creek Gold Project toward development
- Project previously produced ~1 million ounces; now being revitalised
- Initial production target of 100,000oz per annum from open pits
- Underground potential at Omega and Kingfisher offers higher-grade upside
- Recent $30 million capital raise, with $20 million allocated to exploration
- Active drilling underway with multiple rigs across key targets
- Final investment decision targeted for the new year
- Potential early production via toll treatment options
- Project located in a highly prospective Western Australian gold region
- Company trading at a discount to peers at similar development stage
Proactive: Welcome back to Proactive Investors. I'm your host Kerry Stevenson. I've asked Scott Williamson, managing director of Horizon Gold, to join me today. The ASX code is HRN. They’ve got the Gum Creek Gold Project. This has flown under the radar. The market cap is just over $200 million. This is not exploration, this is more of a development story. Scott, congratulations—what a strong project.
Scott Williamson: Thanks Kerry. It’s an amazing opportunity to come back to gold in Western Australia. This project has already produced about 1 million ounces in the 1990s and early 2000s at much lower gold prices. It’s been dormant for around 20 years, so we’re now seeing strong economics at today’s prices.
Proactive: Can you walk us through the development plan?
Scott Williamson: It’s a simple story—open-pit, free-milling operation targeting 100,000 ounces per annum initially. We then plan to bring in underground mines at Omega and Kingfisher. These won’t be in the initial feasibility study, but they will increase grade and push production above 100,000 ounces annually.
Proactive: And the drilling at Omega and Kingfisher?
Scott Williamson: That’s where the excitement is. Underground material is higher grade—around 3 to 4 grams per tonne versus 1.5 grams in the open pit. We’ve got two diamond rigs at Kingfisher and drilling at Omega, which will add upside beyond the current study.
Proactive: Your background is in mining engineering. How did you come across this asset?
Scott Williamson: It was spun out of Panoramic Resources about ten years ago. Panoramic was focused on nickel, and after going into administration, the major shareholder Zeta Resources took a 65% stake. The project hasn’t needed much marketing until now, but we’re now bringing in larger capital to move toward development.
Proactive: You recently raised $30 million. How will that be used?
Scott Williamson: Around $20 million will go into exploration—not because we need more ounces, but to demonstrate underground potential. We’ll also extend open pits, which are all open along strike. The rest will go toward completing the final study.
Proactive: When do you expect a final investment decision?
Scott Williamson: We’re working through permitting, which may take another six months. We’re targeting a final investment decision in the new year, with potential early production via toll treatment options.
Proactive: Final thoughts—why should investors pay attention?
Scott Williamson: This is a development story. We’re trading at about $100 per ounce, while peers at similar stages are at $200–300 per ounce. The market hasn’t fully recognised how close we are to production. We’re targeting 100,000 ounces per year for at least 10 years, potentially 20.