Horizon Minerals Ltd (ASX:HRZ) has boosted gold resources in the region surrounding its Boorara Project near Kalgoorlie at the heart of the WA Goldfields with an updated mineral resource estimate for the recently acquired Cannon Gold Project.
Adding Cannon's 232,000 tonnes grading 4.29 g/t gold for 32,070 ounces takes the company's total mineral resource to 20.73 million tonnes grading 1.72 g/t for 1,148,800 ounces with 77% in the measured and indicated categories.
The high-grade Cannon underground project was acquired as part of the Bulong South, Glandore and Cowarna project acquisition recently completed for $5 million in cash.
This project is 10 kilometres east by existing roads to the proposed Boorara mill site and includes an open pit mined in 2017 along with an access tunnel as well as decline development that allows access to the deposit from underground.
Read: Horizon Minerals completes acquisition of three complementary WA gold assets
“Near-term development opportunity”
“The recently acquired Cannon underground gold project presents a near-term development opportunity and lies just 10 kilometres on existing roads from the proposed Boorara mill site being assessed as part of the consolidated feasibility study,” Horizon managing director Jon Price said.
“The project has the potential to provide high-grade ore early in the production profile with significant growth potential down plunge and along the Cannon shear zone and we look forward to completing the underground mining studies and updated ore reserve in the current December quarter.
“Target generation for resource growth and new discoveries along the Cannon shear zone and within the Glandore and Cowarna project areas is also well advanced with surface drilling planned for the March quarter 2022 with depth extensions to be tested from underground during the mining cycle.”
A detailed review of geological, engineering and metallurgical data has been completed, producing an independent mineral resource estimate for the Cannon underground gold project that now sits at 32,070 ounces at a 1.0 g/t gold lower cut-off grade, with more than 89% in the indicated category.
Next steps
Horizon Minerals is an emerging mid-tier gold producer with an extensive portfolio of highly prospective gold projects in the heart of the world-class Western Australian Goldfields.
The updated mineral resource estimate will now be used for open pit and underground mine optimisation, design and economic analysis for the generation of a maiden ore reserve for Cannon expected current quarter.
A review of the growth opportunities has been completed and planning is underway for further extension drilling along the Cannon shear zone in the March quarter of 2022, and depth extension drilling down plunge of the deposit during the mining cycle.