Horizon Minerals Ltd (ASX:HRZ) has completed the acquisition of 100% of Kalpini Gold Project in Western Australia's Goldfields that offers potential to grow production and mine life of its nearby Boorara Gold Project.
The company acquired the project from the private consortium NBT Metals Pty Ltd for a total consideration of $2.75 million in cash funded from existing cash reserves.
All conditions precedent, including the provision of signed transfers, all mining information and statutory consents, have now been completed and payment has been made to NBT.
The company now intends to complete a resource review with 4,000-5,000 metres of drilling planned at Kalpini in the current quarter 2020 aimed at upgrading the historical resource to JORC 2012 status.
To complement Boorara feed
Horizon managing director Jon Price said: “The Kalpini Gold Project is a significant acquisition for the company adding quality resources to the portfolio in close proximity to the proposed Boorara mill site.
“We believe this development-ready project will complement our Boorara base load feed and satellite mining projects.
“We look forward to the upcoming drilling results, resource updates and inclusion of Kalpini into the consolidated feasibility study due for completion in the June quarter of 2021.”
The project
Kalpini is 50 kilometres northeast of the company’s 100%-owned Boorara Gold Project and around 65 kilometres northeast of Kalgoorlie.
The project comprises the Gambia, Camelia and Atlas deposits covering 585 hectares on granted mining lease M27/485.
A historical JORC 2004-compliant mineral resource, which is under review by Horizon, shows 4.6 million tonnes grading 1.7 g/t gold for 255,600 ounces.
The acquisition aligns with Horizon’s strategy of further regional consolidation and the acquisition of advanced development assets within a 75 kilometres radius of the proposed Boorara Mill.
Stage one mining of the Gambia pit was completed in 2019 producing about 39,000 ounces with a mill reconciled grade of 2.62 g/t gold and a calculated gold recovery of 95.1%.
A significant amount of drilling was undertaken by Kalnorth with mineralisation open along strike and at depth.
Next steps
Horizon plans to start a 4,000-5,000-metre validation infill and extensional drilling program at Kalpini in the next three weeks.
The aim of this drilling is to update the resource to JORC 2012, improve the JORC classification to measured and indicated status for conversion to reserve and test extensions north, south and at depth.
First results from the drilling are expected later this quarter.
Kalpini now joins Boorara, Rose Hill, Binduli and Teal as core development projects for the consolidated feasibility study building an initial five-year mine plan to underpin the construction of a standalone processing plant at Boorara.