BOORARA MINE DEVELOPMENT UNDERWAY – FIRST GOLD JULY 2020 HIGHLIGHTS Board approval received for the development of the first stage of the Boorara gold mine, 10km east of Kalgoorlie-Boulder in the Western Australian goldfields All necessary statutory approvals for mining to commence in place and the A$4 million Working Capital Facility fully drawn down 1 Local contractor Hampton Transport Services Pty Ltd awarded the open pit mining and haulage contract for 2 : o Total mining volume of 520,000 BCM over a six month mine life o Ore mining of 159,000t at a fully diluted grade of 1.86g/t Au o Ore haulage on existing roads to the third party processing plant Site establishment and mobilisation of mining fleet complete with first ore expected in the current month and first ore delivery to the mill in June 2020 2 Ore treatment agreement in place with Golden Mile Milling for ore processing at the nearby Lakewood Mill with the first milling campaign scheduled for July 2020 3 Boorara ore will be processed in monthly campaigns under Horizon supervision to enable mill grade reconciliation data to be compared against the Reserve and Resource models All staff and contractors observing strict safety and COVID-19 operational guidelines with all operational staff residing in Kalgoorlie 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 3 At current A$2,600/oz gold price, Boorara Stage 1 generates A$7.1 million in free cash flow within Financial Year 2021 3 Commenting on the development of Boorara, Horizon Managing Director Mr Jon Price said: “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. 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 program and the completion of the larger scale and longer term production profile as part of the consolidated Feasibility Study.” 1 As announced to the ASX on 16 March 2020. 2 As per the Feasibility Study results announced to the ASX on 10 February 2020. 3 Please see Forward Looking and Cautionary Statements on Page 6. For personal use only
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BOORARA MINE DEVELOPMENT UNDERWAY FIRST GOLD JULY … · Lakewood Mill with the first milling campaign scheduled for July 2020 3 Boorara ore will be processed in monthly campaigns
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BOORARA MINE DEVELOPMENT UNDERWAY – FIRST GOLD JULY 2020
HIGHLIGHTS
Board approval received for the development of the first stage of the Boorara gold mine,
10km east of Kalgoorlie-Boulder in the Western Australian goldfields
All necessary statutory approvals for mining to commence in place and the A$4 million
Working Capital Facility fully drawn down 1
Local contractor Hampton Transport Services Pty Ltd awarded the open pit mining and
haulage contract for 2:
o Total mining volume of 520,000 BCM over a six month mine life
o Ore mining of 159,000t at a fully diluted grade of 1.86g/t Au
o Ore haulage on existing roads to the third party processing plant
Site establishment and mobilisation of mining fleet complete with first ore expected in the
current month and first ore delivery to the mill in June 2020 2
Ore treatment agreement in place with Golden Mile Milling for ore processing at the nearby
Lakewood Mill with the first milling campaign scheduled for July 2020 3
Boorara ore will be processed in monthly campaigns under Horizon supervision to enable
mill grade reconciliation data to be compared against the Reserve and Resource models
All staff and contractors observing strict safety and COVID-19 operational guidelines with
all operational staff residing in Kalgoorlie
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 3
At current A$2,600/oz gold price, Boorara Stage 1 generates A$7.1 million in free cash flow
within Financial Year 2021 3
Commenting on the development of Boorara, Horizon Managing Director Mr Jon Price said:
“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. 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 program and the completion of the larger scale and longer
term production profile as part of the consolidated Feasibility Study.”
1 As announced to the ASX on 16 March 2020. 2 As per the Feasibility Study results announced to the ASX on 10 February 2020. 3 Please see Forward Looking and Cautionary Statements on Page 6.
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Page 2 of 8
Overview
Horizon Minerals Limited (ASX: HRZ) (“Horizon” or “the Company”) is pleased to advise that it has
commenced development of the Boorara Stage 1 gold mine, 10km east of Kalgoorlie – Boulder in
the Goldfields of Western Australia (Figure 1). With all necessary approvals in place to commence
mining and the A$4 million Working Capital Facility now fully drawn 1, the Company is fully funded
for the planned development and mining has commenced.