Horizon Minerals Limited ( ASX:HRZ ) Kalpini offers potential to grow production and mine life at Boorara as part of the consolidated Feasibility Study
HIGHLIGHTS
– Binding Tenement Sale Agreement executed with private consortium NBT Metals Pty Ltd for the acquisition of the Kalpini gold project in the Western Australian goldfields for a total cash consideration of $2.75 million funded from existing cash reserves
– Agreement subject to standard conditions precedent for a transaction of this nature including Ministerial consent, any third party assignments and provision of mining information with Settlement expected in the current quarter
– Kalpini is located 50km north east of the Company”s 100% owned Boorara gold project and comprises the Gambia, Camelia and Atlas deposits covering 585 hectares on granted mining lease M27/485
– Historic JORC 2004 Mineral Resource (before depletion) currently under review by Horizon of 4.6Mt grading 1.7g/t Au for 255,600oz
– Subsequent to release of the resource in 2012, Stage 1 of mining the Gambia pit was completed in 2019 producing approximately 39,000oz with a mill reconciled grade of 2.62g/t Au and a calculated gold recovery of 95.1%
– Significant exploration potential along strike and at depth with infill, validation and extensional drilling planned to commence in the current December Quarter
– Acquisition aligns with Horizon”s strategy of further regional consolidation and the acquisition of advanced development assets within a 75km radius of the proposed Boorara Mill
– Kalpini will now join Boorara, Rose Hill, Binduli and Teal as core projects under evaluation as part of the consolidated Feasibility Study due for completion in June 2021
Commenting on the Kalpini acquisition, Managing Director Mr 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 acquisition aligns with this focus and our strategy of further regional consolidation of advanced development assets in close proximity of the proposed Boorara Mill.”
“The Kalpini gold project has had considerable work completed in the past, including resource modelling, mining, processing and environmental studies which enables rapid advancement of the deposits for inclusion into the consolidated Feasibility Study.”
“We look forward to completing the technical review of the geological models, further drilling and updating the resource. Future drilling will also test extensions along strike and at depth where we see significant opportunity to grow the deposits and reassess their development in the current high gold price environment.”
