First ore is expected this month, followed by first gold production scheduled for July 2020, where Horizon’s ore will be processed at Golden Mile Milling’s nearby Lakewood Mill.
The ore is planned to be processed on a monthly schedule, where mill grade reconciliation data will be used by Horizon to compare processing against the reserve and resource models.
Hampton Transport Services has been awarded an open pit mining and haulage contract by the company, which includes mining 520,000 bank cubic metres (BCM) of ore over a six month mine life and 159,000 tonnes of ore at a fully diluted grade of 1.86 grams per tonne of gold.
Horizon managing director Jon Price said strong gold prices are a welcome addition to this stage of the mine’s development.
“The commencement of mining at Boorara is a significant milestone for the company enabling gold production and cash generation in 2020 at a time of record high Australian dollar gold prices,” he said.
“We are all now fully focussed on safe and efficient mining operations at Boorara, generating cash to self-fund the resource growth drilling program and the completion of the larger scale and longer term production profile as part of the consolidated feasibility study.”
Board approval has been received for the first stage of the Boorara gold mine’s development along with the required statutory approvals to begin mining.
Boorara’s gold production guidance is 8500 to 9000 ounces at an average 91.5 per cent metallurgical gold recovery.
With gold’s current price sitting at $2600 per ounce, Boorara stage one is expected to generate $7.1 million in free cash flow within the 2021 financial year.
“We welcome our local mining partners Hamptons and the Lakewood processing team who have been extremely proactive in responding to the COVID-19 pandemic and ensuring strict safety and health guidelines are observed across the operation,” Price said.