Horizon Minerals Ltd (ASX:HRZ) has generated $3.6 million in net cash flow after completing its third toll milling campaign from trial mining at Boorara Gold Project, 10 kilometres east of Kalgoorlie-Boulder in the WA Goldfields.
Gold produced totalled 2,491 ounces at a calculated recovery of 95%, well above the modelled recovery of 91%, and total revenue received from gold sales was $6.1 million at an average gold price of $2,466 per ounce.
This campaign generated $3.6 million net in cash after haulage and toll milling expenditure with all mining-related costs expended in the September quarter of 2020.
The third toll milling campaign comprised ore from Crown Jewel, Regal East and Regal West trial pits.
It was over a 25-day period with excellent mill performance at the Lakewood processing facility, 7 kilometres west of the Boorara gold mine.
Total ore milled was 50,274 dry tonnes at a mill reconciled grade of 1.62 g/t gold with mined grades improving with depth in line with expectations.
“Pleasing to see mill grades increasing”
Horizon managing director Jon Price said: “It is extremely pleasing to see the mill grades increasing with depth and generating cash with the company fully funded to develop our longer-term production plan being assessed as part of the consolidated feasibility study underpinning a standalone mill.
“The trial has provided a greatly improved understanding of the ore body and we see significant potential to grow Boorara along strike to the south and north and test the depth potential below the 180 metres open pit limit being evaluated as part of the mining optimisation and design studies.”
Aim of campaign
The aim of the trial mining and toll milling from Boorara is to verify the tonnage and grade uplift potential compared to the Boorara global resource model.
Results have demonstrated the potential and will inform an updated resource estimate and maiden ore reserve as part of the consolidated feasibility study ahead of a development decision inclusive of construction of a standalone processing facility.
The third milling campaign started on November 5, 2020 and ran for 25 days with first gold poured on November 12, 2020.
Final toll milling campaign
The final toll milling campaign will start in mid-January comprising the remainder of the high-grade ore and a parcel of low-grade material to test the effectiveness of the grade allocation process.
Pit mapping and geological review of the mined trial pits is complete and will be used with the complete mill reconciliation data to update the Boorara geological model and mineral resource estimate, expected for release next quarter.
A maiden ore reserve will then be compiled for the longer-term production plan being assessed as part of the consolidated feasibility study due for completion in the June quarter of 2021.