Horizon Minerals enters development joint venture with Orminex for Penny’s Find Gold Project

Horizon Minerals Ltd (ASX:HRZ) has executed a binding agreement for the acquisition of a 50% interest in the high-grade Penny’s Find Gold Project in the Western Australian goldfields for $1.5 million cash from Orminex Ltd (ASX:ONX). The asset is 50 kilometres northeast of Kalgoorlie on a granted Mining Lease, aligning with Horizon’s regional consolidation strategy and aim to build a stand-alone production business. Penny’s Find is a high-grade, underground mining and toll treatment opportunity with near term cash flow potential and longer-term exploration upside which will be included in the consolidated feasibility study as a fifth higher-grade satellite operation. Penny’s Find location, Horizon’s project resources and surrounding infrastructure. Penny’s Find has a current resource of 248,000 tonnes at 7.04 g/t gold for 56,000 ounces with 147,000 tonnes at 8.06g/t gold in the indicated category. Importantly, mine development work is well advanced and statutory approvals in place for underground mining in the first half of 2021. Mineral resource estimate Horizon managing director Jon Price said: “Horizon’s core focus remains firmly set on developing a stand-alone gold production business in the Kalgoorlie and Coolgardie region and this acquisition aligns with this focus and our strategy of further regional consolidation of advanced development assets in close proximity to our core assets. “Penny’s Find has had considerable work completed in the past, including resource modelling, open pit mining, processing and environmental studies which enables rapid advancement of the underground deposit. “We also see considerable growth potential below the current high-grade resource which remains open at depth. “We look forward to working with the highly experienced Orminex team completing the technical work required to advance the project into development next year initially via toll milling in 2021-2022 for early cash flow generation. “Beyond this, the project has the potential to provide further high grade satellite ore at the proposed standalone plant at Boorara.” Penny’s Find Gold mine site layout, location of infrastructure and tenements. Horizon will sole fund the first $1 million in pre-development expenditure with the joint venture partners funding the project on a 50:50 basis thereafter. A defined pathway has been laid out for Horizon to acquire 100% of Penny’s Find through the exclusive right to acquire the remaining 50% on completion of the toll milling contract. The toll milling agreement is in place at the Lakewood Mill commencing in July 2021. Horizon is well funded for the acquisition and development work from its existing cash reserves of over $15 million. The agreement subject to standard conditions precedent for a transaction of this nature including ministerial consent, any third-party assignments and provision of mining information with settlement expected in the current quarter