Horizon Minerals Ltd (ASX:HRZ) has been granted a trading halt by the ASX with an announcement pending in regard to financing initiatives.
The company has news upcoming regarding a working capital facility for the development of the Boorara Gold Project and an equity placement for a large-scale exploration program.
This halt will remain in place until the start of normal trading on Friday, March 13, 2020, or when an announcement is released to the market, whichever occurs earliest.
Positive study
The company last month released results of a stage-one feasibility study for the Boorara project, which is near Kalgoorlie-Boulder in WA’s Eastern Goldfields.
The study supports the development of three starter pits – one within the Crown Jewel deposit as well as an east and west pit within the Regal deposits – and outlines a staged development.
Mining will precede processing by two months to build ore stockpiles and this is expected to take an estimated six months with the overall project to take an anticipated eight months.
Financially viable
The study indicates a financially viable project highlighted by:
- Open pit mine design producing 159,000 tonnes at a fully diluted grade of 1.86 g/t for 9,500 ounces over a six month mine life;
- Toll milling at 91% metallurgical recovery produces 8,700 ounces recovered;
- Low up-front capital costs of $440,000;
- C1 Cost of A$1,570/ounce and All In Sustaining Cost of A$1,680/ounce; and
- Project generates A$5.8 million in free cash flow at a current gold price of A$2,350/ounce.
A development decision is expected to be made during this quarter and if this is positive, mining would begin in the June quarter ahead of toll milling in the September quarter.