Horizon Minerals Limited (ASX: HRZ) has commenced development of the Boorara Stage 1 gold mine, 10km east of Kalgoorlie – Boulder.
Managing Director, Jon Price, said the company has all necessary approvals in place to commence mining and with a $4 million Working Capital Facility now fully drawn it is fully funded for the planned development and mining has commenced.
The commencement of mining at Boorara is a significant milestone for the company enabling gold production and cash generation in 2020 at a time of record high Australian dollar gold prices,” Mr Price said.
“We welcome our local mining partners Hamptons and the Lakewood processing team who have been extremely proactive in responding to the COVID-19 pandemic and ensuring strict safety and health guidelines are observed across the operation.
“We are all now fully focussed on safe and efficient mining operations at Boorara, generating cash to self-fund the resource growth drilling programme and the completion of the larger scale and longer-term production profile as part of the consolidated Feasibility Study.”
The go-ahead for the Boorara project development comes after completion of a positive Feasibility Study (FS) confirming Boorara Stage 1 as a free milling oxide and transitional material with grade control drilling completed on 4m X 10m in the north and 5m X 10m in the central areas.
Stage 1 has a gold production guidance of 8,500 – 9,000 ounces at an average 91.5% metallurgical gold recovery and an All In Cost using toll milling of $1,640 – $1,690 per ounce
At the current A$2,600/oz gold price, Boorara Stage 1 is tipped to generate A$7.1 million in free cash flow within Financial Year 2021.
Mining comprises three starter pits; Regal East, Regal West and Crown Jewel.
Locally-based contractor Hampton Transport Services Pty Ltd have been awarded the mining and haulage contracts to complete the works.
Site establishment and fleet mobilisation is now complete, with open cut mining underway in the Regal East pit using conventional truck and shovel operations
Following the removal of approximately 6m of waste overburden in some areas of the Regal East pit, ore mining will commence on a 2.5m flitch height to minimise dilution and maximise ore recovery.
Ore and waste mining will be conducted on day shift only under the control of in pit mining geologists with the main ore zone enabling visual geological control in addition to grade control drilling flitch plans and ore mark-ups.
First ore is expected from Regal East in the current month with Regal West and Crown Jewel pits to be developed in parallel to enable optimal cycling of mining and drill and blast activities.
Ore will be hauled on existing roads to Golden Mile Milling’s Lakewood processing plant with an Agreement in place for treatment of the ore mined.
Treatment will be completed on a monthly campaign basis under Horizon supervision, with the first gold production scheduled for July 2020.