Horizon Minerals’ first ore from the Boorara gold project in Western Australia will be hauled to Norton Gold Fields’ nearby Paddington mill this month, marking an important operational milestone for the company.
A total of 54,380 tonnes of ore has undergone assaying and metallurgical test work and will be processed at an expected grade of 0.8 grams per tonne (g/t) of gold.
Horizon said this first stockpile grade is in line with expectations and grades are intended to improve as the pits progress.
“It is very pleasing that we are transporting our first ore delivery from Boorara, with first revenue due shortly,” Horizon managing director and chief executive officer Grant Haywood said.
“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. We look forward to ongoing gold production from Boorara.”
Mining is set to occur at Boorara over a 14-month period and processing over a 19-month timeframe, with the first gold poured in October, at the Paddington mill through an ore sale agreement, which is expected to generate $30 million in estimated free cashflow at a $3600 per ounce (oz).
The agreement states that within five days of delivering the first ore to the Paddington run-of-mine pad, Paddington to pay Horizon 50 per cent of gross revenue less estimated processing costs, based on the determined grade for each stockpile.
Within five days of Paddington fully treating the stockpile, a final revenue calculation will be made according to the determined grade, moisture and metallurgical recovery, less agreed costs for processing, to calculate Horizon’s final payment.
Horizon approved Boorara’s development in late July, which will see the company mine a series of four open pits containing 1.24 million tonnes of ore at 1.24g/t for 49,500oz.
Horizon said its Phillips Find project is also progressing well and is on track for first ore delivery to the Greenfields mill in February 2025.
Earlier this year, it was announced Horizon would merge with Poseidon Nickel to create a new mid-cap, 100,000-ounce-per-annum gold producer in WA.
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