Horizon Minerals Banks $37.5 Million from Kalgoorlie Gold Sales Amid Record Prices
Horizon Minerals has delivered another quarter of robust financial performance, generating significant cash flow from its gold operations in the Kalgoorlie region of Western Australia. The company banked $23.3 million from the sale of 3,689 ounces of gold at an average realised price of A$6,322 per ounce, capitalising on record-high gold prices. This strong performance has left Horizon with a healthy cash balance of $37.5 million and a substantial inventory of 14,300 ounces of contained gold in stockpiles, positioning it well for future growth.
Successful Completion of Open-Pit Mining Operations
The quarterly results were bolstered by the safe and successful completion of open-pit mining at two key sites. At the Boorara open pit, located 15 kilometres east of Kalgoorlie-Boulder, mining wrapped up this quarter with 208,000 tonnes extracted at a grade of 1.14 grams per tonne (g/t) gold. The ore was processed at Norton Gold Fields' Paddington mill, where 120,000 tonnes grading 1.09g/t gold yielded 3,873 ounces of contained metal.
Meanwhile, at the Phillips Find open pit near Coolgardie, mining contributed 132,000 tonnes of ore at a higher grade of 1.74g/t gold. Horizon expects to finalise and receive revenue and joint venture distributions from this operation in the upcoming March quarter, further enhancing its financial position.
Advancing the Black Swan Processing Hub
With $37.5 million in the bank, Horizon Minerals now has the financial firepower to progress the refurbishment of its key Black Swan Processing Hub. This strategic asset is central to the company's plans for establishing a wholly owned processing base in the region. In parallel, a pre-feasibility study is underway to boost the plant's capacity from 1.5 million tonnes to 2.2 million tonnes per year, a crucial step in scaling up operations.
Detailed scheduling scenarios for the expanded 2.2 million tonne per annum capacity are currently being drawn up, with completion targeted for the March quarter. This will enable a direct transition into Front-End Engineering Design (FEED), which includes a tendered long-lead items list, streamlining the path to operational enhancement.
High-Grade Drilling Success at Burbanks Deposit
Exploration efforts at Horizon's Burbanks deposit have yielded impressive results, with further ultra-high-grade gold intercepts reported as part of Apollo's ongoing two-stage 30,000-metre drilling program. Phase 1, which involved infill and extensional work from 25 holes completed during the December quarter, is now two-thirds complete.
Standout intercepts included a remarkable 1-metre hit running at 1,762 g/t gold from 259 metres, incorporating 0.3 metres at 5,848 g/t gold in one diamond drilling hole where coarse visible gold appeared in quartz veins. Additional strong zones featured 1.55 metres at 99.65 g/t gold from 336.3 metres, including 0.4 metres at 350 g/t gold, together with multiple intervals above 30 g/t gold at various depths.
Notably, the standout ultra-high-grade result fell outside the existing resource boundary in the Main Lode-Burbanks North gap, providing ample scope for resource expansion at this emerging deposit. Planning and approvals for phase two extensional drilling, aimed at down-dip and along-strike extensions of known high-grade lodes, progressed during the quarter, with drilling commencing earlier this year.
Strategic Corporate Moves and Divestment
Corporate activity has also sharpened Horizon's focus on its gold production agenda. Following the completion of the Gordon's Dam project acquisition from Yandal Resources, the company secured 34 tenements over 77 square kilometres close to the Black Swan hub for $1.2 million in cash and 37.6 million shares, consolidating its land position.
In a significant divestment move, Horizon agreed to sell its non-core Lake Johnston nickel project to Forrestania Resources for $35 million, comprising $30 million in cash and $5 million in shares. The company has already banked a $10 million non-refundable deposit ahead of a March quarter completion. The proceeds from this sale are set to help fund the refurbishment of the Black Swan plant, aligning with Horizon's strategic priorities.
Building a Growing Resource Base
Horizon's gold inventory now swells to 1.8 million ounces across the Kalgoorlie–Coolgardie region, a growing resource base that will feed into the company's emerging hub-and-spoke strategy. With Black Swan locked in as the central processing hub by year's end, this approach aims to streamline operations and enhance efficiency.
The combination of a surge in quarterly cash flow, a hefty stockpile of ready-to-sell ounces, and expanding resources at Burbanks has sharpened Horizon's pitch to join the ranks of Western Australia's next independent mid-tier gold producers. As the company continues to advance its projects and strengthen its financial position, it remains well-positioned to capitalise on favourable market conditions in the gold sector.
