Horizon Minerals has received approval to commence gold mining operations at its Phillips Find project in Western Australia. This significant milestone comes less than a week after the company began extracting its first ore from the Boorara mine, also located in the historic Goldfields region of the state. These back-to-back developments position Horizon to significantly enhance its production capacity, as the company capitalizes on the favorable gold price environment.
Joint Venture Agreement Fuels Phillips Find Development
The Phillips Find project will be developed under a joint venture (JV) with Kalgoorlie-based contractor BML Ventures. Under this arrangement, BML Ventures will manage all mining costs, operations, and management, with profits from the mine being equally split between Horizon and BML after the recovery of costs. This JV model not only reduces financial risks for Horizon but also ensures operational efficiency, leveraging BML’s experience and resources.
In preparation for full-scale mining operations, site clearing has already begun at Phillips Find. A 200-tonne excavator and two blast-hole rigs have been deployed to the site, with haul trucks expected to arrive shortly. The JV aims to commence mining operations within the next few weeks, signaling swift progress for the project.
Once the ore is mined, it will be transported to the nearby Greenfields Mill, which is owned by FMR Investments. Horizon secured a processing agreement in May, with plans to begin treating the ore by February next year. A first gold pour is anticipated soon after, marking a significant step forward in Horizon’s gold production timeline.
Strategic Acquisition Boosts Phillips Find’s Potential
Phillips Find is a relatively new asset for Horizon, acquired through the company’s merger with Greenstone Resources earlier this year. The merger, which was finalized in February, brought the project into Horizon’s portfolio along with several other valuable assets. The Phillips Find site boasts an initial inventory of 54,557 ounces of gold at an average grade of 2.3 grams per tonne, offering strong potential for further resource expansion.
Horizon’s management believes that the deposit remains open at depth, providing opportunities for future exploration and resource growth. With the Phillips Find project set to move into production, the company is poised to maximize returns by developing this high-grade gold asset while simultaneously expanding its overall portfolio.
Boorara Gold Project Lays the Foundation for Growth
The Phillips Find development follows closely on the heels of Horizon’s advancements at its Boorara gold project, which is situated just south of Northern Star Resources’ massive Super Pit in Kalgoorlie. Horizon recently started extracting ore from Boorara, which is projected to produce 49,500 ounces of gold over a 14-month period. The Boorara project is forecast to generate approximately $30 million in revenue for the company, providing a substantial financial boost.
By bringing both Boorara and Phillips Find into production in rapid succession, Horizon is positioning itself to significantly increase its free cash flow. The current gold price, which stands at US$2,642 per ounce, is at an all-time high in Australian dollars, trading at AU$3,928 per ounce. This favorable market condition is expected to enhance Horizon’s profitability, further fueling its growth ambitions.
Expansion of the Coolgardie Portfolio: The Burbanks Gold Mine
In addition to the development of Phillips Find and Boorara, Horizon’s recent merger with Greenstone Resources has added the Burbanks gold mine to its portfolio. Located on the southern edge of the town of Coolgardie, the Burbanks mine includes both open-pit and underground operations. Following the merger, Horizon now owns 100% of the Burbanks asset, consolidating the site under single ownership and unlocking new development potential.
The Burbanks mine is considered one of Horizon’s cornerstone projects, with a total combined resource of 465,570 ounces of gold. The underground portion of the deposit is particularly notable for its high-grade gold content, averaging 4.4 grams per tonne and containing 167,000 ounces. The open-pit section of the mine holds 297,000 ounces at a lower grade of 1.3 grams per tonne. The consolidation of these resources into a single operation allows Horizon to streamline exploration and development efforts, potentially accelerating the project’s timeline.
Focus on Mid-Tier Gold Producer Status
Horizon’s strategy is clear: the company aims to cement its position as an emerging mid-tier gold producer in Western Australia. The combined cash flow from the Boorara and Phillips Find projects, expected to materialize over the next 12 months, will provide Horizon with the financial resources needed to accelerate the development of its other key assets, including the Burbanks mine.
As the company transitions from project development to production, it is likely to reinvest a portion of its growing cash reserves into expanding its resource base and further enhancing its production capacity. With multiple projects in the pipeline and a strong JV partnership with BML Ventures, Horizon is well-positioned to continue its upward trajectory in the Australian gold mining sector.
Favorable Market Conditions Bolster Growth Prospects
Horizon’s rapid progress comes at a time when global gold prices are at record highs. The uncertainty in global markets, driven by economic instability and geopolitical tensions, has fueled demand for gold as a safe-haven asset. This has pushed gold prices to new heights, providing a significant tailwind for gold producers like Horizon.
In addition to strong gold prices, Horizon benefits from its strategic location in Western Australia’s Goldfields region, one of the world’s most prolific gold-producing areas. The region’s rich mining history, combined with its well-established infrastructure, provides Horizon with a competitive advantage as it seeks to scale up its operations.
Looking Ahead: Horizon’s Path to Continued Success
With the Phillips Find and Boorara projects set to deliver substantial returns in the near term, Horizon is positioned for significant growth. The company’s strategy of rapidly bringing projects into production, coupled with its focus on high-grade, resource-rich assets, provides a solid foundation for future expansion.
Horizon’s ability to secure favorable joint venture agreements, such as the one with BML Ventures for the Phillips Find project, also highlights its commitment to cost-effective and efficient operations. By partnering with experienced contractors and leveraging strategic processing agreements, Horizon is minimizing operational risks while maximizing potential returns.
As the company moves forward with its ambitious plans, investors will be closely watching Horizon’s performance over the next 12 months. If cash flow from its current projects materializes as expected, Horizon could soon establish itself as a leading player in Australia’s mid-tier gold mining industry. The combination of favorable market conditions, strategic assets, and strong operational partnerships puts the company in an enviable position for long-term success.
Conclusion
Horizon Minerals is entering a crucial phase in its growth journey, with back-to-back developments at its Phillips Find and Boorara gold projects. The company’s ability to swiftly move from project development to production, supported by joint venture agreements and favorable market conditions, sets the stage for significant financial gains. As gold prices continue to soar, Horizon’s well-timed expansion in Western Australia’s Goldfields region could see it emerge as a major force in the gold mining sector.
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