Horizon hauls first ore from Boorara gold project
ASX-listed Horizon Minerals reported on Tuesday that it had started hauling ore from the Boorara gold project, near Kalgoorlie-Boulder, Western Australia.
Mining began in August, and the first ore stockpile, comprising 54 380 t, is being processed at Norton Gold Fields’ Paddington mill. This initial batch, with an average grade of 0.8 g/t gold and a 94% recovery rate, is expected to yield about 1 400 oz of gold.
The ore is projected to generate gross revenue of about $5.78-million, based on the current spot gold price of A$4 130/oz minus processing costs and royalties. Grades are anticipated to improve as mining progresses through Boorara's series of openpits.
“It is very pleasing that we are transporting our first ore delivery from Boorara, with first revenue due shortly. This milestone has been achieved despite the tight labour market during our ramp-up phase and some inclement weather. We are now fully manned up and the team has been making good progress," said Horizon MD and CEO Grant Haywood.
Horizon approved the development of Boorara in July, targeting the extraction of 1.24-million tonnes of ore at an average grade of 1.24 g/t gold, equating to an estimated 49 500 oz. Mining operations are set to span 14 months, with processing continuing over 19 months through an ore sale agreement with Norton Gold Fields.
Under the agreement, Norton will pay Horizon 50% of gross revenue, less estimated processing costs, within five days of ore delivery to the mill's run-of-mine pad. A final revenue calculation will be made upon full processing, accounting for actual grade, recovery rates, and associated costs.
Mining activities have targeted pits 2 and 4 to assemble the first ore stockpile. Haywood also highlighted the progress of Horizon's Phillips Find project, stating: “In addition to Boorara, our Phillips Find project is progressing well and is on track for first ore delivery to the Greenfields mill in February 2025.”
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