Horizon Minerals has sold its Kangaroo Hill and Phoenix gold projects to Greenstone Resources as the company focuses on its Boorara, Yarmany, Lakewood, Binduli project areas and underground development plans.
The $300,000 deal involved two mining leases and two prospecting licences with Greenstone paying Horizon $150,000 in cash and $150,000 in shares for the projects near Coolgardie in WA’s Goldfields region.
Horizon says all conditions for the deal including the provision of signed transfers, all mining information in addition to statutory and third-party consents are now complete.
The Kangaroo Hill project is next to Greenstone’s existing Burbanks Gold Project whilst Phoenix has historically been worked as an underground mine with grades of more than 50 grams per tonne gold and limited exploration below 100m.
Horizon Minerals Managing Director, Jon Price said: “The sale of the projects is in-line with our strategy of divesting non-core assets to fund the future growth of the company through exploration and mine development.”
Horizon says it will now focus on some of its more advanced and promising projects in the Goldfields region including Yarmany. The project sits around 25 kilometres northwest of Coolgardie and takes in some 400 square kilometres along the prospective Mt Ida Fault and Reptile shear zone.
Initial drilling results got things off on the right foot after confirming gold, nickel-cobalt-copper, silver, lead, zinc and even lithium mineralisation to be present at the site.
The work forms part of the company’s strategy to test new discovery targets for multiple commodities across its portfolio with a focus on the Yarmany, Greater Boorara and Lakewood project areas.
A total of 47 reverse circulation holes for 4413 metres and 72 air-core holes for 2617m were completed.
Drill testing of the Reptile shear running diagonally through the Yarmany project gave up decent grades of up to 2m going 4.95 grams per tonne gold from 86m downhole and another 2m at 3.58 g/t gold from a shallower 66m.
Last year the company announced an updated measured, indicated and inferred resource statement for the main Boorara deposit that weighed in at 11.03 million tonnes at an average grade of 1.26 g/t for 448,240 ounces of contained gold.
In February Horizon boosted its bottom line by $1.35 million after toll milling stockpiled low-grade ore from its Boorara open pit mine.
The Perth-based producer holds more than 1100 square kilometres of prime WA real estate that collectively house a 1.15 million-ounce gold resource along with a raft of nickel-cobalt, copper, silver-zinc and platinum-group targets.
Now that the company has divested its interest in Phoenix and Kangaroo Hill, it may turn its attention to exploring the potential mineral wealth it can unlock to add to its gold stocks.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
