Horizon Minerals Ltd has executed a binding tenement sale agreement with private mining company Aurenne Group Holdings for 100% interest in the Bulong South, Glandore, and Cowarna gold projects in the Western Australian goldfields.
Bulong South contains the development ready high-grade Cannon gold project, which now joins the baseload Boorara project, Rose Hill, Binduli, Teal, and Kalpini satellite deposits as core development projects under evaluation to underpin the proposed construction of a standalone processing plant at Boorara.
- Binding Tenement Sale Agreement executed with private gold mining company Aurenne Group Holdings Pty Ltd for the acquisition of 100% interest in the Bulong South, Glandore and Cowarna gold projects in the Western Australian goldfields.
- Projects comprise 24 granted mining, prospecting, exploration and miscellaneous licences covering an area of approximately 180 km2 strategically located in close proximity to the Boorara asset:
- Bulong South, located 10 km east of the 100% owned Boorara gold project, includes the Cannon underground deposit with an established Mineral Resource of 142 000 t grading 5.17g/t Au for 24 000 oz with mineralisation open at depth and to the north and south along the Cannon shear zone.
- Previous feasibility work completed in 2019 delivered a maiden ore reserve of 117 000 t grading 5.31g/t Au for 20 000 oz for the Cannon deposit and positive economic results at a AUS$1750/oz gold price for a decline development from the base of the open pit via contract mining and toll milling.
- Glandore, located 14 km east of Boorara, has multiple advanced open pit and underground exploration targets with historic drilling results awaiting follow up.
- The Cowarna project, covering 138 km2, sits immediately east of the emerging Mt Belches gold project within Silver Lake Resource’s Mt Monger gold operation with walk up drill targets within the orogenic banded iron formation units to the southeast.
- Projects acquired for a total cash consideration of AUS$5 million on the following terms:
- AUS$2.5 million in cash at settlement funded from existing cash reserves.
- AUS$2.5 million in cash on the earlier of 12 months from settlement or first gold production from the Cannon underground gold mine.
- Significant exploration potential at all project areas with target review and drill planning now underway and drilling to commence in the September quarter of 2021.
- Cannon will now join Boorara, Rose Hill, Binduli, Kalpini and Teal as core projects under evaluation as part of the consolidated Feasibility Study due for completion in the December quarter of 2021.
Commenting on the significant acquisition, Managing Director Jon Price said:
“Horizon’s core focus remains firmly set on developing a stand-alone gold production business in the Kalgoorlie and Coolgardie regions and this significant acquisition aligns with our strategy of further regional consolidation of advanced, complementary development assets in close proximity of the proposed Boorara Mill.
“The Cannon underground gold project presents a high-grade near-term development opportunity that will now be incorporated into the consolidated Feasibility Study and can provide high grade ore feed in the early years to complement the base load Boorara deposit and the four advanced open pit and underground satellite projects currently under evaluation.
“We also see the potential for significant resource growth and exploration upside from the Bulong South, Glandore and exciting Cowarna project areas with multiple walk-up drill targets on major geological structures. Drill planning is now underway, and we look forward to providing further updates as we complete the transaction, update mine development studies and commence exploration drilling.”
Read the article online at: https://www.globalminingreview.com/mining/20052021/horizon-minerals-acquires-projects-in-western-australian-goldfields/