Binding 1.4MT Ore Sale Agreement Boorara Production H2 2024
Perth, May 6, 2024 AEST (ABN Newswire) - Horizon Minerals Limited (
ASX:HRZ) is pleased to announce that it has entered into a binding Ore Sale Agreement ("OSA") with Paddington Gold Pty Ltd to treat 1.4Mt of Horizon ore from the Boorara Gold Project.
HIGHLIGHTS
- Binding OSA has been executed with Paddington Gold Pty Ltd, a wholly owned subsidiary of Norton Gold Fields Ltd
- Horizon will arrange contract mining and hauling of ore from Boorara for ore processing at Norton's 3.8Mtpa Paddington Mill, located ~56km by road from Boorara
- An agreed 1.4Mt ("Agreed Amount") will be processed over a period of 22 months, commencing in the September 2024 Quarter
- The OSA contains competitive ore treatment rates with the payment structure as follows:
o Within 5 days of delivering ore to the Paddington ROM pad, Paddington to pay Horizon 50% of gross revenue less estimated processing costs and royalties, based on the determined grade for each stockpile
o Gross revenue calculated based on the Perth Mint spot price on the date of gold pours
o Within 5 days of Paddington fully treating the stockpile, a final revenue calculation shall be made based on the determined grade, moisture and metallurgical recovery, less agreed costs for processing and state gold royalty payments, to calculate a final payment to Horizon
o Stockpiles to be between 10,000t - 50,000t from a combination of oxide, transitional and fresh sources, with Paddington having the right to reject any stockpile that does not meet specifications
o Agreed Amount represents less then 15% of the current Boorara Mineral Resource of 11Mt @ 1.26g/t Au for 448,240oz
o Agreed Amount can be increased or decreased by mutual agreement
o Conditions precedent include Paddington receiving JORC clause 12 modifying factors for an Ore Reserve from Horizon, and Horizon demonstrating all mining permits, approvals, mining and haulage contracts in place within 45 business days
- An Ore Reserve for Boorara based on the tonnage going to Paddington, including forecast economics for the ore processing agreement, will be estimated in the current June Quarter
- Boorara is fully environmentally permitted (with last mining in 2020) and ready for development which is expected to commence within the current June Quarter
Commenting on the return to gold production, Chief Executive Officer Mr Grant Haywood said:
"This is a great opportunity for Horizon to generate strong cashflows in this high gold price environment and takes us further down our pathway to sustained gold production. We continue to work on our other projects to bring additional near-term cashflow into the production pipeline, along with the additional resources and optionality of projects to come through our proposed merger with Greenstone Resources."
Next Steps
- AMC Consultants has been engaged and undertaken preliminary work on Boorara and will progress Boorara into an Ore Reserve study under the JORC (2012) code for release in the June 2024 Quarter
- Continue engagement with mining and haulage contractors to finalise tenders for Boorara and award contracts in the June 2024 Quarter
- Finalise the 200,000 tonne mill allocation with FMR Investments' Greenfields mill with an executed Toll Milling Contract to support mining at the Cannon Gold Project
- Complete the proposed merger with Greenstone Resources to enhance the long-term production profile with development ready high-grade projects
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/TQ7EV6X7
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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