Horizon Minerals to resume gold production with new ore deal

Cloud PRWire

May 6, 2024
by Cloud PR Wire

–News Direct–

Horizon Minerals Ltd (ASX:HRZ) CEO Grant Haywood sits down with Jonathan Jackson in the Proactive studio to discuss a binding ore sale agreement with Paddington Gold Pty Ltd, a subsidiary of Norton Gold Fields Ltd, for the processing of 1.4 million tonnes of ore from Horizons Boorara Gold Project. This ore will be treated at Paddingtons 3.8 million tonnes per annum capacity mill, approximately 56 kilometres from Boorara in Western Australia. The agreement covers a processing period of 22 months starting in the September 2024 quarter.Under the terms of the agreement, Horizon will manage mining and transportation of the ore to Paddingtons mill. Payments will be made to Horizon within five days of ore delivery, amounting to 50% of gross revenue after deductions for estimated processing costs and royalties. The final revenue will be adjusted based on ore grade, moisture, and recovery rates after complete processing.Haywood, highlighted the deal as an opportunity to leverage the high gold price for significant cashflow, aiding the companys path to sustained gold production. Horizon is also progressing other projects, preparing for further near-term production, and progressing a merger with Greenstone Resources to expand production capabilities.The company is working on restarting mining at the fully permitted Boorara Gold Project, last mined in 2020, and is finalising contracts for mining and haulage. Additionally, Horizon is finalising a toll milling contract with FMR Investments for the Cannon Gold Project and completing the reserve estimate for Boorara.