Horizon Minerals Ltd (ASX:HRZ) has generated $1.2 million in net cash after completing the fourth and final milling campaign from trial mining at the Boorara Gold Mine, 10 kilometres east of Kalgoorlie-Boulder in the Goldfields of Western Australia.
The final toll milling campaign was completed successfully at the Lakewood processing facility around 7 kilometres west of the Boorara mine.
During the milling campaign, the company processed 14,962 dry tonnes of ore from Regal East, with a mill reconciled grade of 1.6 g/t gold and recovery of 94.2%, in line with expectations.
Gold produced totalled 1,182 ounces generating $2.8 million in revenue at an average sales price of A$2,356 per ounce for net cash of $1.2 million after haulage and toll milling expenditure.
“Improved geological understanding”
Horizon managing director Jon Price said: “The Boorara trial mining and toll milling exercise has provided a greatly improved geological understanding of this complex mineralised system and confirmed the presence of multiple flat-lying cross-cutting structures that will now be incorporated into an updated resource model.
“In addition, testing the ore through a mill gives us real-time metallurgical recoveries, reagent consumptions and optimal plant design parameters and costs as we advance the consolidated feasibility study.
“Generating cash at the same time is the icing on the cake and we now look forward to releasing the updated resource and reserve in coming months.”
Mineral resource update
The ultimate aim of the trial mining and toll milling is to verify the tonnage and grade uplift potential compared to the current Boorara global resource model.
Results to date have demonstrated this potential and will inform an updated mineral resource estimate and a maiden ore reserve as part of the consolidated feasibility study ahead of a development decision inclusive of construction of a standalone processing facility at Boorara.
Final geological and economic reconciliation from the Boorara trial is being completed and expected for release later this quarter.
The company has completed the pit mapping and geological review of the mined trial pits and data will be used to update the Boorara geological model and mineral resource estimate, which is expected early in the June quarter of 2021.
A maiden ore reserve will then be compiled for the longer-term production plan being assessed as part of the consolidated feasibility study due for completion in the September quarter of 2021.
Overall, the company has more than $10 million cash in hand along with more than $5.2 million in listed investments and has no debt.