Horizon Minerals Ltd (ASX:HRZ) has completed the acquisition of a 50% interest in the Penny’s Find Gold Project further enhancing its strong gold position near Kalgoorlie in Western Australian’s Goldfields.
Last year, the company signed an agreement to acquire 50% interest in the project from Orminex Ltd (ASX:ONX) for total consideration of A$1.5 million in cash funded from existing cash reserves.
Horizon will also fund the first $1 million in pre-development expenditure with the joint venture partners thereafter funding the project on a 50:50 basis.
“Accelerated path to production”
Horizon managing director Jon Price said: “Penny’s Find is a quality high-grade gold project with considerable work completed enabling an accelerated pathway to production with approvals and toll milling agreement in place for the first phase of development.
“We look forward to working with the Orminex team and releasing the drilling results, updated resource model and mine optimisation and design work in coming months enabling a development decision in the September quarter of 2021.”
Toll milling
A defined pathway has been laid out for Horizon to acquire 100% of Penny’s Find through the exclusive right to acquire the remaining 50% on completion of the toll milling contract.
A toll milling agreement is in place at the Lakewood Mill for the first phase of Penny’s Find development.
Penny’s Find Project
The project is a high-grade, underground mining and toll treatment opportunity with near-term cash flow potential and longer-term exploration upside which will be included in Horizon’s consolidated feasibility study as a fifth higher-grade satellite operation.
This study is examining a number of production centres around Kalgoorlie that are all in proximity to the company’s proposed Boorara processing centre.
Penny’s Find is 50 kilometres northeast of Kalgoorlie on a granted Mining Lease, aligning with Horizon’s regional consolidation strategy and aim to build a stand-alone production business.
The project has a current resource of 248,000 tonnes at 7.04 g/t gold for 56,000 ounces with 147,000 tonnes at 8.06 g/t gold in the indicated category.