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Horizon Minerals Ltd

Intermin Resources combining its Kalgoorlie gold assets with MacPhersons Resources

The merged company will be a near-term gold producer in the Kalgoorlie region.

two puzzle pieces getting pushed together to represent merger
MacPherson's Boorara deposit has approvals in place for open pit mine development

Intermin Resources Ltd (ASX:IRC) executed a merger implementation agreement (MIA) in mid-December 2018 to combine with MacPhersons Resources Ltd (ASX:MRP).

The merged entity, subject to various approvals is to be named Horizon Minerals Limited.

It will have estimated JORC resources totalling 1.19 million ounces of gold and an extensive portfolio of highly prospective growth assets in the world-class Western Australian goldfields

READ: Intermin Resources and MacPhersons sign transformational merger deal

The merger provides a clear pathway to a standalone operation.

The combined asset base will hold 609,600 ounces of gold located within easy trucking distance of the 507,000 ounce Boorara deposit.

Boorara has approvals in place for open pit mine development and the construction of a new processing facility.

Boorara is located 10 kilometres east of Kalgoorlie-Boulder and could provide significant baseload feed for a standalone plant within the Boorara tenement area.

READ: MacPhersons Resources intersects high-grade gold at Boorara, updating geological model

MacPhersons has completed over 86,000 metres of drilling to extend the strike length at Boorara to over 2 kilometres and the deposit remains open to the north and at depth.

Further infill and extension drilling is planned in 2019 for this very large gold system to test the potential to provide baseload feed for a standalone processing facility.

Intermin’s core Teal, Goongarrie Lady, Binduli, Anthill and Blister Dam gold projects each have the potential to provide over 2 g/t gold, oxide and transitional feed amenable to open pit mining to supplement the baseload feed from Boorara.

Intermin drilled 56,000 metres in 2018 resulting in resource upgrade

Intermin completed a 56,000-metre exploration drilling program at the Teal, Anthill, Binduli and Blister Dam projects in 2018 as planned.

Most recently, during the December quarter, drilling resulted in a resource update at the Antilll deposits which now stands at 2.28 million tonnes at 1.71 g/t gold for 125,500 ounces.

Over 65% of the resources is now in the Indicated category with mineralisation open to the west and east.

More recently, strong drilling results have been received from the Crake prospect within the Binduli Project and also from the Blister Dam Project.

READ: Intermin Resources delivers positive gold grades in Blister Dam drilling 

During the December quarter, 56 reverse circulation (RC) holes were drilled for 6,954 metres at Blister Dam.

Highlights included 6 metres at 5.97 g/t gold from 66 metres and 12 metres at 4.03 g/t gold from 16 metres.

PFS planned to commence at Richmond Vanadium Project in 2019

Intermin also has an interest in the Richmond Vanadium Project in Queensland, an emerging asset alongside the Western Australian gold portfolio.

During November 2018, Intermin received further positive metallurgical test work results from the Lilyvale deposit area.

Lilyvale is one of four deposits within the Richmond project, which has a total JORC resource of 2.579 billion tonnes grading 0.32% vanadium hosted in a soft oxide marine sediment 4 metres from surface.

READ: Intermin Resources receives positive vanadium test work and starts drilling

Completion of this first phase of test work is scheduled for mid-2019 and will enable the commencement of a preliminary feasibility study (PFS).

The project is subject to an earn-in joint venture with AXF Vanadium Pty Ltd whereby AXF can earn 75% by spending $6 million by March 2021.

17,500-metre drilling program commenced at Richmond

In late November 2018, drilling at the Richmond project commenced with a total of 17,500 metres planned within a $1.2 million budget.

The drilling program is expected to be completed over a three month period.

Infill drilling at Lilyvale comprises 450 holes for 10,000 metres to upgrade the current Inferred resource to the Measured and Indicated categories for Ore Reserve conversion.

Regional drilling will comprise 350 holes for 7,500 metres testing a number of priority targets in both the Richmond and Julia Creek areas.

Quick facts: Horizon Minerals Ltd

Price: $0.15

Market: ASX
Market Cap: $62.06 m
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