Horizon Minerals : Quarterly Activities Report 31 December 2021
HRZ.AX
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ASX: HRZ
ASX ANNOUNCEMENT
20 JANUARY 2022
QUARTERLY ACTIVITIES REPORT FOR THE
PERIOD ENDED 31 DECEMBER 2021
HIGHLIGHTS
MARCH QUARTER ACTIVITIES 6
horizonminerals.com.au
163 Stirling Hwy
PO Box 1104
T: +61 8 9386 9534
ACN 007 761 186
Nedlands WA 6009
Nedlands WA 6909
ABN 88 007 761 186
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ASX ANNOUNCEMENT
Horizon Minerals Limited (ASX: HRZ) (Horizon or the Company) is pleased to provide the December 2021 Quarterly Activities Report. Horizon is an exploration and production company within the Kalgoorlie and Coolgardie regions of Western Australia (Figure 1).
A key focus for the Company is on exploration upside within our 1,100km2 tenement package with up to four drill rigs currently operating as part of the large-scale new discovery and project generation exploration program. Horizon holds numerous multi - commodity assets including listed investments and a joint venture covering the world class 1.8Bt Richmond - Julia Creek oxide Vanadium Project in North Queensland (Figure 14).
Figure 1: Horizon's project locations, regional geology and surrounding infrastructure
Primary activities during the Quarter included the continuation of the 50,000m project generation and new discovery drilling program and release of results, resource modelling and mine optimisation studies for Ore Reserve estimation, further toll treatment of low-grade stockpiles for cash generation and geological review, joint venture assessment and review of further consolidation and divestment opportunities.
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ASX ANNOUNCEMENT
MINE DEVELOPMENT AND OPERATIONS
During the Quarter, development activities focussed on open pit and underground mine optimisation, design and economic analysis for Ore Reserve generation on core projects including the Boorara, Cannon, Penny's Find, Crake, Jacques Find - Peyes Farm, Kalpini and Rose Hill gold projects. Work completed included geotechnical assessment, confirmatory metallurgical test work, ore and waste characterisation, infrastructure and services studies and progression of environmental and statutory approvals.
Resource and reserve work is being completed predominantly by independent consultants and will be released to market when completed in coming months.1
In addition, a further toll milling campaign was completed during the Quarter treating low-grade stockpiles from the Boorara open pit at the Lakewood processing facility 7km to the west. The 36-day campaign processed 69,711 dry tonnes at a fully reconciled grade of 0.92g/t Au for 1,857 fine ounces at a calculated recovery of 90%.
The campaign generated approximately $770,000 after all costs under a profit-sharing arrangement with the toll mill owner.
The ore grade reconciled 8% above the mine claimed grade and provided further valuable geological information on grade allocation processes. Gravity recovery was again high at 33% with reagent consumption and throughput rates in line with expectation.
A second toll milling campaign commenced late in the Quarter with final reconciliation results expected in the current March Quarter 2022.1
EXPLORATION AND EVALUATION
During the Quarter, the Company completed 14,486m of drilling and received results from over 7,000m as part of the 50,000m resource definition and new discovery exploration program across the entire 1,100km2 asset portfolio.
Reverse Circulation (RC) drilling commenced at multiple new discovery targets within the Greater Boorara area including Kanowna South (Au), Gretel (Ag-Zn-Ni), Golden Ridge (Au), Perkolilli (Au-Cu), Brindabella (Ag-Zn-Ni), Tramways/Condor (Ag-Zn-PGE) and Balagundi (Au) (Figure 3).
Exploration drilling has also commenced at the exciting Yarmany and Lakewood project areas (Figure 1) with both RC and Air Core (AC) rigs testing multiple targets along major geological structures. Field reconnaissance, soil sampling and rock chip sampling have identified significant potential for gold, nickel and pegmatites (lithium) along the Mt Ida Fault and Reptile shear zone at Yarmany with results from the first phase of drilling expected in the current March Quarter.1
Follow up and extensional RC drilling was also completed at the Kestrel, Honeyeater, Crake, Coote and Black Flag prospects within the Binduli project area (Figure 1).
Significant delays continue to be experienced at the laboratories with assays taking up to 8 weeks to be processed impacting on follow up drilling plans, resource updates and reserve work. Exploration is typically completed systematically with the results of the previous programs informing the next round of drilling. Results from over 7,000m of drilling remain pending and are expected in the current March Quarter 2022.1
1 See Cautionary and Forward-Looking Statements on Page 41.
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ASX ANNOUNCEMENT
Boorara gold project area
The baseload Boorara gold project is located 15km east of Kalgoorlie-Boulder (Figure 1) adjacent to the Super Pit and 1km southwest of the Nimbus silver zinc project site where established offices are connected to mains power and existing water supplies.
The deposit is hosted in a quartz dolerite comprising a sheeted quartz vein array system with bounding shear zones and late-stage cross faults. Mineralisation occurs as northwest dipping sheeted and stockwork quartz-carbonate vein arrays within the quartz dolerite host rocks, and steeply dipping zones along sheared geological contacts trending to the north-northwest.
The Mineral Resource estimate (JORC 2012) for Boorara is shown below1:
Boorara at 0.5 g/t Au lower cut-off grade
Resource category
Tonnes (Mt)
Grade (g/t Au)
Gold metal (koz)
Measured
1.28
1.23
51
Indicated
7.19
1.27
294
Inferred
2.56
1.26
103
Total
11.03
1.26
448
During the Quarter, the Company continued the 13,000m regional drilling program within the greater Boorara project area exploring for Boorara style gold mineralisation and near mine new discoveries (both precious and base metals) along the 25km of strike proximal to the Boorara shear zone.
At Golden Ridge, the Company completed 42 RC holes for 5,118m testing extensions to the north toward the Royal deposit 4km along strike. Preliminary results have been received from 31 of the 42 RC holes with significant mineralisation intercepted including 2:
The results received to date (Figure 2) have demonstrated excellent width and grade continuity beyond the current mineralised envelope. Several new high-grade zones have been delineated with further drilling planned with the aim of connecting the Golden Ridge and Boorara mineralisation and testing the southern extent.3
Gold mineralisation at Golden Ridge is largely associated with the north-south trending, sub vertical quartz-feldspar porphyry located between shales and cherts to the west and ultramafic (talc-carbonate) sequences to the east. Mineralisation is similar to Boorara where gold is observed in flat lying vein arrays and thicker, steeper dipping contact style lodes.
The historic Golden Ridge gold mine was first developed from 1901-1927 when 249,000t @ 17.1g/t Au for 139,550oz was mined to an underground depth of 174m. More recent open cut mining from 1998-2004 produced 1.78Mt @ 1.98g/t Au for 113,500oz.
1 See Tables and Confirmation on Page 39.2 As announced to the ASX on 7 December 2021, * denotes 4m
composites with 1m split assays pending.3 See Cautionary and Forward-Looking Statements on Page 41.
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Figure 2: Golden Ridge North drilling highlights 2021 1
About 2.5km south of Golden Ridge, the Company commenced testing a large surface gold anomaly with an Air Core rig. In total, 35 holes for 2,654m were drilled along old grid lines (refer to ASX announcement dated 20 October 2021). Results are still pending for 18 holes with results received to date including 1:
Recent mapping has now confirmed this area as being the extension of the Golden Ridge stratigraphy. As mentioned, two of the drillholes returned significant mineralisation and follow up drilling will be completed in 2022 once final assays have been received.2
The mapping has also identified highly magnetic olivine bearing magnesium (Mg) ultramafics (e.g., serpentinised komatiite) to the west of Golden Ridge. Komatiites can be fertile hosts for nickel sulphide mineralisation in this region. Very little nickel sulphide focussed drilling has been undertaken at Golden Ridge. The mapping, combined with historic nickel-copper auger anomalies and untested TEM conductors (Fimiston Mining, 1997, A53699) close to the basal footwall contact with the sediments has helped finalise further drill targets that will be scheduled into the 2022 exploration program. 2
Final assay results from both programs are expected in the current March Quarter. 2
1 As announced to the ASX on 7 December 2021. 2 See Cautionary and Forward-Looking Statements on
Page 41.
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Horizon Minerals Limited published this content on 19 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 January 2022 22:45:09 UTC.