Pennys Find Resource Update
Perth, Dec 29, 2023 AEST (ABN Newswire) - Horizon Minerals Limited (
ASX:HRZ) is pleased to announce an updated Mineral Resource Estimate for the Company's 100% owned Pennys Find project located 50 km northeast of Kalgoorlie-Boulder in the heart of the Western Australian goldfields (Figure 1*).
- Horizon Minerals owns 100% of the fully permitted Pennys Find gold mine located 50km northeast of Kalgoorlie in the Goldfields of Western Australia
- The 2022 independent Mineral Resource estimate stood at:
o 270,000t grading 4.99g/t Au for 43,000 ounces with 81% in the Indicated Category
- During 2023, a total of 10 RC and diamond tail drill holes were completed for 3,298.4m to expand and infill the resource at depth and convert some of the Inferred ore to the Indicated Resource classification category.
- An updated underground (<260 m RL) Mineral Resource Estimate has now compiled by the Company and stands at:
o 429kt grading 4.57 g/t Au for 63,000 oz at a 1.5g/t Au lower grade cut-off
- Over 80% of the resource is now in the Indicated Resource category and can now be incorporated into the ongoing mine optimisation and underground design work. The Indicated Resource stands at:
o 305kt grading 5.19 g/t Au for 51,000 oz at a 1.5g/t Au lower grade cut-off
- A feasibility study shall be undertaken with a maiden Ore Reserve for Pennys Find is expected in the June Quarter 2024.
- The mine is permitted for development via a previously approved Mining Proposal and Project Management Plan.
The Company acquired the remaining 50% interest in the project from joint venture partner Labyrinth Resources Ltd (ASX:LRL) in December 2021. The project presents an early underground development and production opportunity to generate cash under a toll milling and underground contractor / JV arrangement.
The infill and extension program aimed to improve resource classification and test extensions with excellent results and new mineralisation intercepted to the north. The deposit also remains open at depth and will be tested from underground drilling positions.
Project Geology
The high-grade gold mineralisation at Pennys Find is hosted in thin quartz veins at the contact between footwall sediments including black shale and siltstone and a hanging-wall basalt. The quartz veins dip about 60deg to the northeast and collectively average 1 m to 5 m true width.
Open cut mining to 85 m depth (242 mRL) was completed by Empire Resources in 2018 with toll treatment processing at Lakewood (Kalgoorlie) and Burbanks (Coolgardie). Production from the open pit totalled 18,300 oz at 4.47 g/t Au (as announced to the ASX by Empire (ASX:ERL) on 25 July 2018). Metallurgical test work and toll milling data has shown fresh mineralisation to be free milling with a high gravity recoverable gold component and a total gold recovery which has exceeded 90%.
Resource Update
An eight-hole RC and diamond tail drill program for 2,550m was completed in Q2 2023, and an additional four RC holes drilled in Q3 2023 for 906m. The total resource drilling, mostly RC with diamond tails, completed by Horizon at Pennys Find since 2021 stands at 8,085.1m.
The 2023 drilling primarily focussed on the inferred or peripheral ore zones, especially to the north.
In addition to the assaying, the diamond core was subsequently used to confirm geotechnical observations and interpretations and further structural assessment.
Significant downhole intercepts reported in 2023 include:
- 1.45m @ 2.61g/t Au from 314.75m and 3.2m @ 4.19g/t Au from 318.3m (PFRCD23003)
- 1.05m @ 6.36g/t Au from 355.5m (PFRCD23001)
- 1.0m @ 7.49g/t Au from 363.9m (PFRCD23002)
- 2.90m @ 1.73g/t Au from 292.0m (PFRCD23007)
- 0.78m @ 12.85g/t Au from 331.48m (PFRCD23006
- 5m @ 2.97g/t Au from 370m (PFRC23012A)
- 2m @ 1.27g/t Au from 305m (PFRC23011)
Commenting on the resource upgrade, Chief Executive Officer Mr Grant Haywood said:
"It is pleasing to see the Resource growth at Pennys Find on the back of the 2023 drill programmes, including extensions at depth and to the north of the existing resource, which still remains open. We look forward to completing the underground mining study and economic review in the June 2024 quarter for a development decision to be made shortly thereafter."
Next Steps
The updated resource will now be incorporated into a feasibility study for mine design and financial analysis and incorporate a maiden Ore Reserve for Pennys Find. The results of the study are expected in the June Quarter 2024, with a financial investment decision (FID), pending favourable study results, made thereafter.
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/76958V8U
About Horizon Minerals Limited
Horizon Minerals Limited (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.
Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.
Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.
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