Horizon Minerals has secured the green light to start gold mining at its Phillips Find operation in Western Australia, less than a week after mining the first ore from its Boorara mine that also sits in the State’s historic Goldfields region.
The project will be developed under a joint venture (JV) agreement with Kalgoorlie-based contractor BML Ventures, which will be responsible for all mining costs, management and operations. The profits will be split equally between the two firms after cost recovery.
Management says site clearing at the site has already begun and equipment, including a 200-tonne excavator and two blast-hole rigs, have been deployed. Haul trucks are also expected to arrive soon as the JV prepares to kick off mining in the next few weeks.
Material mined from the project will be processed at the nearby FMR Investments-owned Greenfields Mill under an agreement signed in May, with the ore expected to be treated from February next year and a first gold pour shortly thereafter.
The Phillips Find project is a relatively new asset for Horizon, having inherited the grounds after tying the merger knot with Greenstone Resources in February. With an existing inventory of 54,557 ounces of gold going 2.3 grams per tonne, mining the deposit sets up the tantalising prospect of expanding the resource, which management regards as open at depth.
The Boorara gold project is directly south of Northern Star’s giant Super Pit in Kalgoorlie. It is forecast to deliver a $30 million payday by producing 49,500 ounces of gold across a 14-month period.
By getting the separate Phillips Find operation up and running so soon after mining Boorara’s first ore, the company’s free cash flow is likely to be supercharged – especially given the current favourable gold price that is trading at US$2642 per ounce and at an all-time high in Australian dollars today of AU$3928 per ounce.
Horizon Minerals managing director and chief executive officer Grant Haywood said: “We look forward to commencing production at Phillips Find later this month. This is another major achievement for Horizon creating significant cash flows and value from our suite of in-ground assets on our path to be a long-term sustainable gold producer.”
Another key asset in Horizon’s regional Coolgardie portfolio to benefit from the recent merger with Greenstone is the Burbanks gold mine that sits on the southern edge of the town. Following the deal, the open-pit and underground operations are now amalgamated under single ownership.
Considered a cornerstone project by the company, the two deposits have a combined resource of 465,570 ounces notable for the high-grade underground dirt running at 4.4g/t gold for 167,000 ounces, while the open-pittable section hosts a 1.3g/t deposit for 297,000 ounces.
Should the rivers of free cash start to flow from Boorara and now Phillips Find in the next 12 months, Horizon is likely to be keen to quickly deploy some of its new-found wealth into Burbanks as it looks to firmly stamp its mark on the sector as an emerging mid-tier gold producer.
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By James Pearson
