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Investor Insight

Horizon Minerals’ near-term cash-flow potential and its significant land package in the prolific Western Australian Goldfields with considerable exploration upside position the company to positively leverage the current bull gold market opportunity.

Overview

Horizon Minerals (ASX:HRZ) is an ASX-listed emerging mid-tier gold mining company focusing on a portfolio of highly promising gold projects located in the world-class Western Australian goldfields. The recent merger with Greenstone has added nearly 0.5 million ounces (Moz) of high-grade resource to Horizon, taking its total tally to 1.8 Moz, and will result in Horizon Minerals holding a land package of 939 sq km in the Kalgoorlie-Coolgardie district.

The merger brings near-term cash-generating opportunities and adds greater scale to its baseload assets (Boorara) with the high-grade Burbanks deposit. Horizon’s dual-track strategy involves generating immediate cash flows by leveraging a pipeline of development-ready production assets and concurrently advancing the cornerstone assets, Boorara and Burbanks, which have a combined resource inventory of 914 koz at 1.7 grams per ton (g/t) gold with potential to support a profitable, long-life operation.

The recent ore sale agreement with Paddington Gold is encouraging and increases confidence in the management’s ability to generate near-term cash flows. Under the agreement, 1.4 million (Mt) will be processed over a period of 22 months, commencing in September 2024 quarter. The agreement allows Horizon to capitalize on high gold prices to generate significant cash flows.

Horizon is also progressing with other projects, including the Cannon gold project and Penny’s Find underground mine, and actively exploring for new discoveries in the Western Australian Goldfields, targeting gold and other commodities such as nickel-cobalt, silver-zinc, PGEs and lithium across its extensive land holdings. Additionally, Horizon holds a significant stake in one of the world’s largest vanadium projects via its investment in Richmond Vanadium Technology, which is listed on the ASX.

Company Highlights

• Horizon Minerals is an emerging mid-tier gold producer with an extensive portfolio of highly promising gold projects located in the world-class Western Australian goldfields.
• The recently announced merger with Greenstone Resources will establish Horizon as a mid-tier gold producer in the Western Australian Goldfields. The combined entity will boast a resource base of 1.8 Moz and enhance Horizon’s portfolio by combining two complementary cornerstone gold assets — Burbanks and Boorara (combined resource of 914,000 oz).
• Horizon is also progressing with other projects, including the Cannon and Penny’s Find underground mines, and bringing the Boorara open pit into production.
• Amidst the current record gold prices, Horizon seeks to capitalize on this opportunity by advancing its substantial resource endowment towards development, thereby generating cash flow.

The Boorara gold project is located 15 km east of Kalgoorlie-Boulder in the Western Australian goldfields. Over the past decade, a substantial amount of reverse circulation and diamond drilling has been carried out at Boorara. The project includes a JORC 2012 mineral resource estimate (MRE) by Optiro (now Snowden Optiro), which reported a total of 11.03 Mt grading at 1.26 g/t gold, amounting to 448,000 ounces.

The company views Boorara as a substantial baseload feed source that could be enhanced by lower tonnage, higher-grade feed to sustain a standalone milling facility. This is where the recent acquisition of Greenstone becomes important. Boorara can be supplemented by higher-grade feed from Greenstone’s Burbanks deposit to support an integrated operation.

Boorara is fully environmentally permitted and ready for development, which is expected to commence within 2024.

Burbanks Gold Project

The Burbanks gold project is situated 9 km southeast of Coolgardie, Western Australia. The project encompasses the Burbanks Mining Centre and more than 5 kilometers of the highly promising Burbanks Shear Zone, historically the most significant gold-producing structure within the Coolgardie Goldfield. Previous underground production at Burbanks has surpassed 420,000 oz to date.

Burbanks currently hosts a total resource of 6.1 Mt @ 2.4 g/t gold for 466 koz, including underground of 1.2 Mt @ 4.4 g/t gold for 168 koz. Burbanks is underexplored and remains open in all directions for future growth.

Cannon Underground Project

The Cannon gold project is located 30 km east-southeast of Kalgoorlie-Boulder. It is a fully permitted project with a pre-feasibility study completed in 2022, which shows strong project economics with a free cash…