The company has executed a Binding Tenement Sale Agreement with private consortium NBT Metals Pty Ltd for the acquisition of the project for total cash consideration of $2.75 million that will be funded from existing cash reserves.
Kalpini is 50 kilometres northeast of the company’s 100%-owned Boorara Gold Project and around 65 kilometres northeast of Kalgoorlie.
It comprises the Gambia, Camelia and Atlas deposits covering 585 hectares on granted mining lease M27/485.
An historical JORC 2004-compliant mineral resource, which is under review by Horizon, shows 4.6 million tonnes grading 1.7 g/t gold for 255,600 ounces.
Technical review and further drilling
Horizon managing director Jon Price said: “Horizon’s core focus remains firmly set on developing a standalone gold production business in the Kalgoorlie and Coolgardie region.
This acquisition aligns with this focus and our strategy of further regional consolidation of advanced development assets in close proximity of the proposed Boorara Mill.
“The Kalpini Gold Project has had considerable work completed in the past, including resource modelling, mining, processing and environmental studies which enables rapid advancement of the deposits for inclusion into the consolidated feasibility study.
“We look forward to completing the technical review of the geological models, further drilling and updating the resource.
“Future drilling will also test extensions along strike and at a depth where we see significant opportunity to grow the deposits and reassess their development in the current high gold price environment.”
Review of historic data
Horizon will complete a detailed review of all historic data and geological models and assess further drilling requirements with the aim of updating the historical resources to JORC 2012.
Additional infill and validation drilling is planned to improve the JORC classification.
The mineralisation remains open along strike and at depth with extensional also drilling planned to test resource extensions.
The acquisition aligns with Horizon’s strategy of further regional consolidation and the acquisition of advanced development assets within a 75 kilometres radius of the proposed Boorara Mill.
Following the acquisition, Kalpini will join Boorara, Rose Hill, Binduli and Teal as core projects under evaluation as part of the consolidated feasibility study due for completion in June 2021.
Stage one mining of the Gambia pit was completed in 2019 producing about 39,000 ounces with a mill reconciled grade of 2.62 g/t gold and a calculated gold recovery of 95.1%.
There is exploration potential along strike and at depth with infill, validation and extensional drilling planned to start in the current quarter.