Horizon Minerals Ltd (ASX:HRZ) has implemented a range of controls to protect the health and safety of its personnel, their families and the communities in which it operates in response to the COVID-19 pandemic.
The measures include all operational staff and local contractors residing in Kalgoorlie and observing strict safety and COVID-19 operational guidelines and head office and administration staff working under flexible working arrangements to minimise face-to-face interaction.
Horizon managing director Jon Price said: “Horizon is taking a very conservative and balanced approach to upcoming activities to ensure the health and well-being of our staff, contractors and the communities in which we operate.”
Cash conservation
The company is also implementing prudent financial measures which include a reduction in the number of board members from four to three with Jeff Williams stepping down as a non-executive director.
The board and executive team will also take a 25% reduction in salary until further notice.
Price said: “I would also like to take this opportunity to thank Jeff Williams for all his guidance and support since he joined following the merger with Macphersons and wish him all the very best for the future.”
Boorara development
The aim of the financial measures is to minimise all expenditure not directed toward bringing the Boorara gold mine into production.
Price said: “In these uncertain times, cash conservation is also a core focus and we are minimising all expenditure not directed towards bringing Boorara into production in the current June quarter.”
Mine development work at Boorara remains on track for mine commencement in the current quarter and first gold production in the September quarter.
Stage one funding
Last month Horizon secured debt and equity funding for a total of $6 million for development of the Boorara stage 1 gold project and an accelerated resource growth and exploration drilling program.
The funding comprises a $4 million working capital facility for Boorara stage 1 mine development and a $2 million equity placement to new and existing institutional and sophisticated investors both in Australia and overseas - in addition to the company’s current cash reserve of $2.2 million.
Funds from the facility will be used as a working capital cash buffer for the development of the initial stage of the Boorara gold mine.
Horizon’s gold project locations, regional geology and surrounding infrastructure
Next steps
An initial RC and diamond drill program has been completed at the high-grade Rose Hill project with results expected in the current quarter.
Drilling programs are also planned for the second half at Crake, Boorara, Golden Ridge, Balagundi and Rose Hill following positive cash flow generation from Boorara.
Horizon also plans to complete the consolidated feasibility study evaluating all advanced open cut and underground development projects to deliver a robust four to five-year mine plan and underpinning a standalone processing plant at Boorara.