Horizon Minerals Limited has achieved first gold production from the third toll milling campaign from trial mining at the Boorara Gold Mine, which is situated 10 kilometres east of Kalgoorlie-Boulder in the goldfields of Western Australia.
According to Horizon, the aim of the trial mining and toll milling from Boorara is to verify the tonnage and grade uplift potential when compared to the global resource model.
Results to date have demonstrated this potential and are expected to inform an updated Mineral Resource Estimate and a maiden Ore Reserve as part of the consolidated Feasibility Study ahead of a development decision inclusive of construction of a standalone processing facility at Boorara.
In addition, toll milling has provided valuable metallurgical information on gravity recovery, reagent consumption, optimal mill set up parameters and overall recovery ahead of a potential significant capital investment for the mill.
The third toll milling campaign comprises ore from the Crown Jewel and Regal West trial pits, grading 1.6 – 2 grams per tonne (g/t) of gold (Au) .
Estimated production from the campaign is 2,100 ounces (oz) – 2,600oz at 92 per cent gold recovery generating $5.3m – $6.6m in revenue at current gold prices .
The company noted that all mining and site costs were fully expensed in the September Quarter 2020 with mining completed six weeks ahead of schedule.
Horizon further advised that a full production and cost reconciliation will be completed after the final milling campaign is completed in January 2021.
An updated Mineral Resource Estimate for Boorara is forecast to be completed in the March Quarter 2021 and a maiden ore reserve in the June Quarter 2021 as part of the consolidated Feasibility Study underpinning the construction of a stand-alone mill at Boorara .
Horizon Managing Director, Jon Price, said with all mining and site production costs fully expensed last quarter, he looks forward to the strong net cash flow expected from the final two milling campaigns and growing what is already a very healthy financial position for the company.
“In the last six months, we have been mining, milling, drilling, consolidating and evaluating to support the larger-scale development and production profile. Boorara will provide the baseload feed and mill site and the satellite projects including Crake, Teal, Rose Hill and now Kalpini are being assessed to complement Boorara in the initial five-year production profile.”
 As announced to the ASX on 10 February 2020, see also Tables and Confirmations on Pages 4-5 here.
 See Cautionary and Forward Looking Statements on Page 6 here.