Horizon Minerals Ltd (ASX:HRZ) has commenced a grade control drilling program at its Boorara Gold Project, 10 kilometres east of Kalgoorlie-Boulder in the Western Australian goldfields.
The program will comprise 18,000 metres of drilling at the Regal, Royal and Crown Jewel lodes on an average 10 metres by 5 metres drill pattern to a maximum depth of 60 metres.
Horizon’s drilling is designed to generate a detailed grade control geological model to enable a mining inventory to be established which will underpin staged mining and toll milling in parallel with standalone development feasibility studies.
The current resource for Boorara stands at 16.45 million tonnes at 0.96 g/t gold for 507,000 ounces at a 0.5 g/t lower grade cut-off grade.
Horizon’s gold project locations, regional geology and surrounding infrastructure
A small open pit trial conducted in 2016 produced 1,550 ounces from the mining and toll treatment of 30,239 tonnes of oxide ore with a mill reconciled grade of 1.73 g/t gold and 91% metallurgical recovery.
This trial was in line with the grade control modelled grade of 1.8 g/t gold and significantly above the resource block model at 1 g/t gold.
Horizon managing director Jon Price said: “The initial trial pit completed in 2016 produced a significant uplift in grade when compared to the global resource model and demonstrated the importance of the infill grade control drilling in understanding the multiple vein arrays and nugget effect within this large mineralised system.
“In parallel with the consolidated feasibility study currently underway for a standalone development, our prime location provides us with the opportunity to assess mining and toll milling pathways for earlier cash generation to take advantage of the current high gold price environment.”
Grade control drill collar positions
Drilling results are expected early in the March Quarter 2020 and will be used to compile a grade control model ahead of optimisation and mine design.
Meanwhile, discussions with potential third-party toll mills close to Boorara have progressed with the aim of securing a mill allocation commencing in the June Quarter 2020.
Horizon is also aiming to complete an updated resource estimate for Boorara as part of the consolidated feasibility study due for completion in the June Quarter 2020.