Australia’s mid-tier gold producer Horizon Minerals has unveiled details on the development of its Cannon Underground Project, and project development pipeline.
The company completed the construction of a dewatering pipeline between the fully permitted Cannon mine and the Golden Ridge Mine, marking a significant step in the development of its Cannon Underground Project.
It also announced installation of a pumping system in the Cannon pit and the commissioning of the pipeline have enabled dewatering to commence, with the aim of exposing the portal position for underground mining.
The company has received tenders from three underground contracting parties and anticipates further pricing within the next month.
Following this, Horizon Minerals will update the project economics to reflect the latest contract pricing and recent changes in the gold price.
First ore production from the Cannon Project is targeted in the December quarter of 2024.
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By GlobalData
Progressing as planned, a prefeasibility study (PFS) on the updated Pennys Find resource, released in December 2023, is set to be completed by the June Quarter of 2024.
This will include a maiden ore reserve. Open pit optimisations at Kalpini have been undertaken, indicating substantial cash flows via toll treatment at a gold price of A$2,800/oz.
AMC Consultants has completed further open pit optimisation work on the Boorara project.
Initial optimisation for a short-term open pit via toll treatment also shows favourable cash flows at a gold price of A$2,800/oz.
Horizon Minerals is now re-evaluating the Boorara project for a larger, longer-life development through Heap Leach and Carbon in Leach (CIL) processing pathways, which could yield substantial positive cash flows at the same gold price.
The company is in early talks with potential joint venture partners and open pit contractors to potentially fast-track open pit production from new areas, including Boorara, Kalpini, and Monument.
To ensure the security of the Cannon assets and compliance with regulatory requirements, a caretaker has been employed to conduct statutory checks of the pipeline, in line with the works approval, discharge licence, and groundwater licences.
Horizon Minerals CEO Grant Haywood said: “Horizon has a large resource endowment that we are working towards development and bringing cashflow into the business in this record gold price environment. We have worked diligently on progressing negotiations and approvals for our projects to provide a sequence of development assets with the aim to be in sustainable gold production.
“This work will increase the optionality within our combined portfolio upon completion of our planned merger with Greenstone Resources. This will introduce several new, high-grade, near-term mining opportunities in the Coolgardie region.
“Developments will be sequenced to maximise near-term cash flow from low-capital projects to support the development of our long-life cornerstone assets.”
