Horizon Minerals, listed on the ASX as HRZ, has announced its plans to develop the Boorara gold mine in Western Australia. The mine is located just 10 kilometers east of Northern Star Resources’ Super Pit, the largest gold mine in the state. This development marks a significant milestone for Horizon Minerals, which aims to become Australia’s newest gold producer.
The company’s board has made an investment decision that allows for the immediate start of pre-production works. Grant Haywood, Horizon’s managing director and chief executive, emphasized the importance of this development. He stated that unlocking the latent potential within their extensive portfolio of development assets, which hosts a 1.8 million-ounce mineral resource, is key to their strategy.
The first contracts for mining and ore haulage services have already been awarded. Payments for these services will commence once the first gold pour is sold and funds are received. The company expects the first gold pour to occur in October this year. As construction of Boorara progresses, Horizon will oversee management and technical services. Key roles such as site senior executive and quarry manager have already been filled, ensuring a smooth development process.
Mining at the open pit is expected to last for an initial period of 14 months, with processing continuing for 19 months. The Boorara mine was previously trial-mined in 2016, generating 30,239 tonnes of ore grading 1.73 grams per tonne (g/t) gold. Additionally, 13,095 tonnes of gold grading 0.68 g/t were stockpiled during this trial. The latest mineral resource estimate for Boorara includes 10.5 million tonnes of gold grading 1.27 g/t, totaling 428,000 contained ounces.
Following the resumption of production at Boorara, Horizon Minerals plans to develop other projects in parallel. The goal is to establish Horizon as a long-term, sustainable gold producer in a favorable gold price environment. The company’s strategy aligns with the recent surge in gold prices, which have sparked significant activity in the Australian gold sector.
Record-high gold prices have led to notable acquisitions and mergers in the industry. In December, Evolution Mining agreed to buy an 80% stake in the Northparkes copper-gold mine in New South Wales from the Chinese miner CMOC Group. This followed the high-profile acquisition of Newcrest by Newmont for more than $15 billion.
In February, Red 5 was acquired by Silver Lake Resources to create a mid-tier gold producer valued at $1.5 billion. In April, Perseus Mining took over OreCorp, further consolidating the sector. Additionally, Canada’s Karora Resources recently voted in favor of being acquired by Australia’s Westgold Resources. This deal will create a Western Australian gold producer with an annual output of over 400,000 ounces of gold.
Horizon Minerals’ Boorara gold project is part of a broader trend of increased investment and consolidation in the Australian gold mining industry. With gold prices reaching record highs, companies are looking to expand their portfolios and increase production capacities. Horizon’s decision to develop Boorara reflects confidence in the continued strength of the gold market.
