HIGHLIGHTS
- Binding OSA has been executed with
- Horizon will arrange contract mining and hauling of ore from Boorara for ore processing at Norton's 3.8Mtpa
- An agreed 1.4Mt ("Agreed Amount") will be processed over a period of 22 months, commencing in the
- The OSA contains competitive ore treatment rates with the payment structure as follows:
o Within 5 days of delivering ore to the Paddington ROM pad, Paddington to pay Horizon 50% of gross revenue less estimated processing costs and royalties, based on the determined grade for each stockpile
o Gross revenue calculated based on the Perth Mint spot price on the date of gold pours
o Within 5 days of Paddington fully treating the stockpile, a final revenue calculation shall be made based on the determined grade, moisture and metallurgical recovery, less agreed costs for processing and state gold royalty payments, to calculate a final payment to Horizon
o Stockpiles to be between 10,000t - 50,000t from a combination of oxide, transitional and fresh sources, with Paddington having the right to reject any stockpile that does not meet specifications
o Agreed Amount represents less then 15% of the current Boorara Mineral Resource of 11Mt @ 1.26g/t Au for 448,240oz
o Agreed Amount can be increased or decreased by mutual agreement
o Conditions precedent include Paddington receiving JORC clause 12 modifying factors for an Ore Reserve from Horizon, and Horizon demonstrating all mining permits, approvals, mining and haulage contracts in place within 45 business days
- An Ore Reserve for Boorara based on the tonnage going to Paddington, including forecast economics for the ore processing agreement, will be estimated in the current
- Boorara is fully environmentally permitted (with last mining in 2020) and ready for development which is expected to commence within the current
Commenting on the return to gold production, Chief Executive Officer Mr
"This is a great opportunity for Horizon to generate strong cashflows in this high gold price environment and takes us further down our pathway to sustained gold production. We continue to work on our other projects to bring additional near-term cashflow into the production pipeline, along with the additional resources and optionality of projects to come through our proposed merger with
Next Steps
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- Continue engagement with mining and haulage contractors to finalise tenders for Boorara and award contracts in the
- Finalise the 200,000 tonne mill allocation with
- Complete the proposed merger with
*To view tables and figures, please visit:
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About
Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.
Horizon has a number of joint ventures in place across multiple commodities and regions of
Contact:
Chief Executive Officer
T: +61 8 9386 9534
E: grant.haywood@horizonminerals.com.au
Media Relations -
T: +61 422 602 720
E: michael.vaughan@fivemark.com.au
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