Horizon sets record production with $38.8M in WA gold sales

Horizon Minerals’ journey to become Kalgoorlie’s next standalone gold producer has been significantly bolstered by a robust quarter of record cash flows from its Boorara and Phillips Find operations.

The company says its stellar performance of record production was achieved through steady-state production at both Boorara and Phillips, driving $38.8 million in revenue at record high gold prices of more than $5100 an ounce.

Horizon’s operations at Boorara and Phillips Find are hitting their stride, generating significant cash flows under toll milling agreements with the Paddington and Greenfields mills.

Boorara, 15 kilometres east of Kalgoorlie’s Super Pit, churned out more than 298,000 dry tonnes of dirt grading 0.95 grams per tonne (g/t) gold in the quarter, yielding 6446 ounces for a hefty $33 million in revenue.

The project has substantial stockpiles, with about 200,000 tonnes of high-grade ore and 90,000t of lower-grade material remaining and ready for processing next quarter.

At the Phillips Find joint venture with BML Ventures, 70km west of Boorara, toll treatment mining delivered 18,676t at a much richer 1.97g/t gold, producing 1132 ounces for the remaining $5.8 million in revenue.

The lower-risk JV sees BML fund and operate all mining costs at Phillips Find, with the net cash flow split 50/50, allowing Horizon to focus on maximising its Boorara operations.

Preparations at Horizon’s Newhaven and Newminster open pits at Phillips Find are on track for first pour, with a further 60,000t processing campaign scheduled for next month at the Greenfields mill.

With continued proof of mining capabilities, institutional investors tinned up $30 million in capital raising in May. The funds will be directed to the company’s recently acquired Black Swan processing plant, 40km east of Kalgoorlie, which it intends to revitalise and repurpose as its gold processing hub.

Flush with cash and 1300 square kilometres of gold-rich tenure in the greater Kalgoorlie area, Horizon has launched an ambitious 30,000-metre reverse circulation and diamond drilling program at its Burbanks project, 9km south of Coolgardie, to unlock the next chapter for this historic high-grade goldfield.

The two-phase campaign is designed to upgrade the existing 6.1 million-tonne resource grading 2.4g/t for 466,000 ounces into higher-confidence mineable categories, while chasing high-grade extensions at depth.

Previous high-grade hits at Burbanks feature some impressive grades, including a 0.3m hit coming in at 45.4g/t gold from 428m and 7m at 5.51g/t from 130m.

First assay results are expected in the September quarter, setting the stage for a potential resource upgrade by early next year.

The company’s broader portfolio boasts an impressive 1.8 million ounces of gold resources waiting to be unlocked. Of this, Boorara hosts a 1.24Mt resource grading 1.24g/t for just 49,500 ounces of gold.

Horizon says its vision to become a standalone gold producer is taking shape with the ongoing prefeasibility study for the Black Swan processing plant, assessing the viability of its conversion into a gold processing hub targeting a minimum capacity of 1.5Mt per annum. The study is set for completion this December.

The company’s cash-generating operations at Boorara and Phillips Find, combined with the high-grade potential of Burbanks and the transformative Black Swan project, position Horizon as a potentially formidable player in the world-renowned Kalgoorlie goldfields.

With drilling results due, Black Swan’s pre-feasibility study advancing and mining humming on all fronts, Horizon is well on its way to achieving its vision of sustainable production.

As gold prices hover above $5100 per ounce, Horizon’s bulging bank balance and strategic acquisitions signal a bright future. With multiple projects open for expansion and a clear path to mid-tier status, this WA gold miner continues to tick all the boxes.

Is your ASX-listed company doing something interesting? Contact: matt.birney@wanews.com.au