Source : THE AGE NEWS
Horizon Gold has unveiled a trifecta of reverse circulation drilling results across its Gum Creek project in Western Australia’s Murchison region, 100km southeast of Meekatharra, extending mineralisation a whopping 800m south of the existing resource at its Howards prospect. At the same time, the drill bit has been delivering broad and high-grade hits at the company’s Heron South and Melbourne Bitter targets.
Horizon is drilling into a serious brownfields growth story. Its 663-square-kilometre gold camp holds 37.97 million tonnes grading 1.89 grams per tonne (g/t) for 2.3 million ounces and has produced more than one million ounces historically. A 48-target exploration runway emerged from an earlier review of ground, peppered by more than 56,000 historical holes totalling over 2400km, with more than 65 per cent of the holes less than 50m deep.
At Howards, 27km southeast of the historic Gidgee mill, the existing 245,300-ounce resource stretches over 1.3km of strike. Every hole drilled on 100m-spaced lines immediately south of the resource intersected gold, extending known mineralisation a further 800m.
Standout results from the recent drilling at Howards included one hole that threw up 6m grading 5.57g/t gold from 70m, including a 3-metre section at 9.91g/t from 71m. A second hole hit 9m at 2.27g/t from 41m, while a third delivered 4m at 4.65g/t from 70m, including a cracking one-metre high-grade core of 17.30g/t gold.
‘The impressive results and follow up drilling have the potential to enhance the Project economics beyond the recent DFS.’
Horizon Gold managing director Scott Williamson
Closer to Gidgee, at Heron South 15km south-southeast of the historic mill, the existing 78,900-ounce resource delivered both width and grade. Results were led by 6m at 12.67g/t from 114m, including a spectacular one-metre slice at 58.70g/t, alongside 25m at 1.79g/t from 84m in a second hole and 12m at 2.35g/t gold from 142m depth in a third. In total, nine holes struck thick mineralisation of 2.5g/t or more, with Horizon saying the drilling confirmed continuity and highlighted potential expansion down dip and to the south along strike.
North of the proposed Gidgee processing hub, Melbourne Bitter sits 26km from Gidgee and holds 21,300 ounces. Shallow drilling returned 21m at 2.14g/t from just 24m, including 8m at 3.64g/t. Horizon says the results confirmed existing grades and widths, extended mineralisation south and highlighted potential for greater width and grade south and west of existing drilling.
The latest results follow impressive drilling at Kingfisher, Hawk and Swan, where the company sees potential resource additions outside the mine plan in the recent definitive feasibility study (DFS). According to management, substantial underground and sulphide resources also remain outside the open-pit study, giving Horizon several potential avenues to build beyond its existing development case.
Horizon Gold managing director Scott Williamson said: “The impressive results from Howards, Heron South, and Melbourne Bitter highlight the potential for significant resource expansion across the Gum Creek Project and follow up drilling prior to updating the respective resource estimations have the potential to enhance the Project economics beyond the recent DFS.”
Diamond drilling is continuing at Swan, Kingfisher and Wilsons, while reverse circulation drilling rolls on elsewhere at Gum Creek. At Heron South, Horizon is drilling two diamond holes to unravel the structural controls of high-grade plunging shoots and guide further expansion drilling before its resource is updated.
Horizon is also lining up infill drilling at Howards before a resource update later this year, while further shallow drilling will precede Melbourne Bitter’s next resource estimate. The company says the highly prospective southern half of Melbourne Bitter’s prospecting licence has yet to be drilled.
Gum Creek sits in heavyweight gold country alongside multi-million-ounce camps such as Wiluna, Meekatharra, Cue, Mt Magnet and Agnew/Lawlers. The project also comes with serious mining muscle already in place, including a 110-person camp, operational airstrip, tailings facilities and haul roads linking 37 historic open pits and three underground mines.
For Horizon, any additional resources that ultimately prove economic could slot into a development plan already taking shape. The DFS envisages a central 2.4-million-tonne-per-annum Gidgee plant and 880,000 ounces of recovered gold over 10 years, with a whopping pre-tax net present value of $1.307 billion at a five per cent discount rate.
The study forecasts average production of 88,000 ounces a year, peaking at 114,000 ounces in year two and $1.854 billion in pre-tax free cashflow from a 728,000-ounce reserve, based on a A$5500 gold price. It has also pencilled in all-in sustaining costs of A$2995 per ounce and $350M in construction capex.
With gold now trading at US$4668 (A$6550) per ounce, Australian spot prices sit more than A$1000 above the DFS assumption, adding some serious tailwind to Horizon’s resource-growth push.
Horizon has already laid the foundations for a major new gold mine at Gum Creek. With three more deposits showing room to grow, fresh resource estimates on the way and the drill bit firing on all six cylinders, the company looks set for a busy period ahead, building a much bigger house on top.
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