Horizon Minerals Ltd (ASX:HRZ) has been advised by Focus Minerals Ltd (ASX:FML) that it is unlikely to obtain necessary approvals for the sale of the Coolgardie Gold Project in WA to Horizon before the exclusivity period expires on December 17, 2019.
Forum has provided formal notification to Horizon under an exclusivity deed for the sale of the project, which includes the Three Mile Hill processing plant.
This notification outlined that Focus was unlikely to obtain the necessary internal, board and regulatory approvals in time.
Not contemplating further extension
Horizon said it was not contemplating seeking any further extension of the exclusivity period.
The company was seeking to acquire the project and processing plant as they had direct synergies with Horizon’s other gold assets in the region.
Horizon continues to progress its suite of gold projects in proximity to Kalgoorlie-Boulder and is well-positioned to do so with a current cash position of approximately $4.3 million.
Horizon project locations, underlying geology and surrounding infrastructure.
Drilling at Boorara
Last month the company began an 18,000-metre grade control program at Boorara project designed to generate a detailed grade control model to enable a mining inventory to be established.
This will underpin staged mining and toll milling in 2020.
Results of the model and subsequent mill reconciliation will feed into an updated resource model for Boorara as part of a consolidated feasibility study to support the base load feed for the proposed mill.
Potential satellite feed sources in close trucking distance include Crake, Coote, Teal, Rosehill and Golden Ridge, which will form part of the study due for completion in the September quarter of 2020.
The current resource for Boorara stands at 16.45 million tonnes at 0.96 g/t gold for 507,000 ounces at a 0.5 g/t lower grade cut-off grade.