Horizon Minerals Limited (HRZ.AX) Mining Commences at Phillips Find
Horizon Minerals Limited (ASX:HRZ) is pleased to announce that it has executed through its wholly owned subsidiary, Greenstone Resources Limited, an open pit mining Joint Venture (JV) Agreement with BML Ventures Pty Ltd ("BML" or the "Miner") for the Phillips Find Gold Project ("Phillips Find" or "Project"). The proposed mining project is 100% owned and located 45 km north-west of Coolgardie, Western Australia in the heart of the Western Australian goldfields (Figure 1*).
HIGHLIGHTS
- Joint Venture (JV) Agreement executed with BML Ventures Pty Limited (BML) to develop and mine two open pits at Phillips Find
- Existing 200kt Toll Miiling Agreement executed with FMR Investments Pty Ltd (FMR) to be utilised for Phillips Find JV ore
- All management, technical, operational and maintenance roles to be undertaken by BML with oversight by the Company
- Low financial risk JV structure with BML to fund all project costs, with net cashflow after the asset recovery and repayment of costs to be split 50/50 between Horizon and BML
- Mining Proposal (MP) submitted to DMIRS and is currently under assessment
- Mobilisation and site establishment is imminent, with mining commencing in the September 2024 quarter subject to MP permit being approved
- First gold production planned for the December 2024 quarter, subject to permitting
- Processing at FMR's Greenfields mill to be undertaken for a period of eight months under the Toll Milling Agreement
- Mining at Phillips Find is independent of mining at Boorara being treated at Norton Gold Fields' Paddington mill, with production and cashflows now coming in from two production sources
- Current Australian gold price provides favourable environment to deliver strong margins and cashflow generation
Commenting on the JV agreement, Managing Director and CEO Mr Grant Haywood said:
"We are pleased to have partnered up with BML Ventures, who have a proven track record of delivering projects in the eastern goldfields of Western Australia. BML will be managing and sole funding the Phillips Find JV which greatly derisks the project for the Company, particularly from a financial perspective. This agreement does not require any capital from Horizon and allows us to keep our focus on our Boorara startup. The Cannon Project will be paused until sufficient cash flows are generated from our two production sites, Boorara and Phillips Find, to sole fund rather than joint venture.
We look forward to generating cash over the next 19 months from two gold mining projects in this very strong gold price environment."
*To view tables and figures, please visit:
https://abnnewswire.net/lnk/3VH905LN
Grant Haywood Chief Executive Officer T: +61 8 9386 9534 E: grant.haywood@horizonminerals.com.au Michael Vaughan Media Relations - Fivemark Partners T: +61 422 602 720 E: michael.vaughan@fivemark.com.au
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