Horizon Minerals Ltd (ASX:HRZ) has received further strong shallow high-grade drilling results from the Rose Hill Gold Project, near Coolgardie, 35 kilometres west of Kalgoorlie in Western Australia.
The results have confirmed the potential for an open pit development ahead of underground mining at Rose Hill.
Drilling of 29 reverse circulation (RC) holes for 899 metres to a maximum depth of 65 metres has returned shallow high-grade intercepts:
- 6 metres at 2.73 g/t gold from 0 metres and 7 metres at 2.34 g/t from 15 metres;
- 5 metres at 4.79 g/t from 4 metres and 2 metres at 3.12 g/t from 24 metres;
- 2 metres at 1.93 g/t from 11 metres and 15 metres at 1.66 g/t from 18 metres;
- 7 metres at 1.15 g/t from 0 metres and 3 metres at 6.63 g/t from 10 metres; and
- 7 metres at 2.36 g/t from 2 metres and 10 metres at 1.94 g/t from 10 metres.
“Open-cut and underground potential”
Rose Hill is one of four core satellite gold projects being advanced to complement the baseload Boorara gold project as part of the consolidated feasibility study to deliver an initial five-year mine plan and underpin the establishment of a stand-alone processing facility at the Boorara mine site.
Initial scoping work indicates the potential for an open pit development at Rose Hill followed by decline development to access the higher-grade underground lodes at depth.
Horizon managing director Jon Price said: “Rose Hill continues to demonstrate significant open cut and underground potential and we look forward to completion of the updated resource models and reserve generation studies in coming quarters as drilling continues with four rigs across a number of core project areas.
“The company’s aim is to generate additional high-grade open pit and underground reserves supplementing the large scale baseload Boorara project in Kalgoorlie to underpin a longer term production pipeline and a standalone processing facility at Boorara.”
Ongoing drilling and test-work
Further drilling is planned at Rose Hill and includes several RC and geotechnical diamond holes for optimal open pit design, portal location and underground development studies.
To date, metallurgical test-work at Rose Hill has shown excellent overall gold recoveries of 92%-96% with a high gravity recoverable gold component.
The company also plans to commence drilling at the Brilliant North Project in early 2021, which lies 80 metres south of Rose Hill and is believed to represent the southern extension of the Rose Hill deposit.
Rose Hill geology plan, highlights and section locations.
Updated resource model pending
The updated mineral resources at Rose Hill and Brilliant North will form part of the consolidated feasibility study with the aim of generating a minimum five-year mine plan underpinning the construction of a standalone processing plant at the Boorara mine site.
Rose Hill's current resource estimate to 300 metres depth stands at 1.2 million tonnes at 2.49 g/t gold for 95,000 ounces at a 0.7 g/t lower cut-off grade.
The updated resource model for Rose Hill is expected in the current quarter.
Looking forwards
Core advanced projects under evaluation for reserve generation and the initial production profile includes the 507,000 ounce base load Boorara project, the Binduli project area including the 74,000 ounce Crake discovery, the 289,000 ounce Teal gold camp, the Rose Hill and Brilliant North open cut and underground gold projects as well as the newly acquired Kalpini project where drilling is planned in the current quarter.
Trial mining has been completed at Boorara and toll milling campaigns will continue through to January 2021.
The company aims to have all core project resources updated in the December 2020 and March quarter 2021 enabling reserve generation in the June quarter of 2021.