Horizon Minerals Ltd (ASX:HRZ) capped off the December quarter with a series of resource definition, extension and discovery drilling programs across its WA gold portfolio.
The gold explorer and producer drilled 14,486 metres over 2021’s final months and is set to keep pace in the new year, with up to four drill rigs on site working across the asset base.
Horizon's portfolio lies at the heart of WA's Goldfields and is central to its vision: becoming the state's next standalone gold producer.
The feather in its cap is the 507,000-ounce Boorara gold project, which is currently in production, while the major project generation and discovery campaign is targeting satellite assets that could boast similar potential.
Horizon ended the quarter with just under $3.6 million in the bank to continue exploration through the March quarter.
The company also holds around $9.56 million in investments across ASX-listed companies.
During the December quarter, Horizon started monetising some of its listed investments to free up cashflow, with this process to continue in 2022.
March quarter activities
Over the coming quarter, Horizon has identified several key activities to progress.
These include:
- Progressing its largescale exploration program and releasing further drilling results;
- Unveiling its maiden ore reserves and evaluating multiple production options;
- Progressing the demerger and listing of the Richmond Vanadium Project; and
- Continuing to pursue value accretive consolidation opportunities.
Exploration and evaluation
Between September and December, Horizon continued to advance its 50,000-metre project generation and new discovery drilling program.
The gold explorer and producer secured results from more than 7,000 metres of drilling over the December period, while drilling continued across its 1,100-square-kilometre portfolio.
Reverse circulation (RC) drilling commenced at multiple new discovery targets within the greater Boorara area, including Kanowna South (gold), Gretel (silver-zinc-nickel), Golden Ridge (gold), Perkolilli (gold-copper), Brindabella (silver-zinc-nickel), Tramways/Condor (silver-zinc-platinum group elements (PGE)) and Balagundi (gold).
Exploration drilling has also commenced at the Yarmany and Lakewood project areas, with both RC and aircore rigs testing multiple targets along major geological structures.
Field reconnaissance, soil sampling and rock chip sampling have identified significant potential for gold, nickel and lithium pegmatites along the Mt Ida Fault and Reptile shear zone at Yarmany, with results from the first phase of drilling expected in the current quarter.
Finally, follow-up and extensional RC drilling was also completed at the Kestrel, Honeyeater, Crake, Coote and Black Flag prospects within the Binduli project area.
Outside of drilling, Horizon upgraded the mineral resource estimate for its Cannon property, which is now reported to host 232,000 tonnes of ore at 4.29 g/t gold for 32,070 ounces.
Promisingly, 89% of this resource lies within either the measured or indicated category.
Mine development and operations
During the quarter, development activities focused on open pit and underground mine optimisation.
It also honed in on design and economic analysis for ore reserve generation across core projects, including the Boorara, Cannon, Penny’s Find, Crake, Jacques Find-Peyes Farm, Kalpini and Rose Hill gold projects.
Work completed included geotechnical assessment, confirmatory metallurgical test work, ore and waste characterisation, infrastructure and services studies and progression of environmental and statutory approvals.
Resource and reserve work is being completed — predominantly by independent consultants — and will be released to the market in the coming months.
In addition, a further toll milling campaign was completed during the quarter, treating low-grade stockpiles from the Boorara open pit at the Lakewood processing facility.
The 36-day campaign processed 69,711 dry tonnes at a fully reconciled grade of 0.92g/t gold for 1,857 fine ounces at a calculated recovery of 90%.
This campaign generated roughly $770,000 after all costs under a profit-sharing arrangement with the toll mill owner.
What’s more, the ore grade reconciled 8% above the mine claimed grade and provided further valuable geological information on grade allocation processes.
Gravity recovery was again high at 33% with reagent consumption and throughput rates in line with expectation.
A second toll milling campaign commenced late in the quarter, with final reconciliation results expected in the current quarter.
Corporate activities
The December season marked a busy time for Horizon on the corporate front.
Most notably, the company moved to 100% ownership of the Penny’s Find Gold Project, completed the acquisition of the Cannon asset and executed a nickel rights agreement with fellow ASX-lister Metal Hawk Ltd.
The company also announced its intention to demerge and progress an initial public offering (IPO) for the Richmond-Julia Creek Vanadium Project, including an in-specie distribution back to shareholders.