Horizon Minerals Bolsters Cash Reserves with $10 Million Gold Payout
Horizon Minerals has successfully converted more gold from its Phillips Find project into substantial cash, banking an additional $10 million in March. This payment stems from the joint venture's final toll-treatment campaigns, which have now concluded, marking a significant milestone for the company's financial strategy.
Processing Campaigns Yield High-Grade Gold Production
Mining operations by Horizon's joint venture partner, BML Ventures, wrapped up in late November last year, completing two processing campaigns and all five toll-treatment runs. In the final run, Horizon processed 127,043 tonnes of ore grading 2.31 grams per tonne gold at a third-party mill, producing 9,141 ounces with an impressive recovery rate of 96.9 percent.
Additionally, lower-grade ore totaling 26,927 tonnes grading 1.13 grams per tonne gold was processed at Focus Minerals' Three Mile Hill mill, yielding 879 ounces at a recovery rate of 89.8 percent. Across the entire Phillips Find campaign, the joint venture has now processed 225,988 tonnes at an average grade of 2.02 grams per tonne gold, resulting in 14,095 ounces of high-grade production.
Financial Strength Fuels Black Swan Hub Development
Horizon Minerals' estimated unaudited cash reserves now stand at a robust $114.1 million, inclusive of the recent $10 million Phillips Find payment, a final $20 million payment from the Lake Johnston asset sale, and $55 million from the first tranche of a recent placement. This total excludes an additional $120 million from Tranche 2 of the placement, pending shareholder approval, and approximately $21.4 million in unrestricted listed shareholdings.
The growing cash pile provides Horizon with the financial firepower to advance the refurbishment and conversion of its Black Swan processing hub. Located 45 kilometers northeast of Kalgoorlie-Boulder in Western Australia's Goldfields, this 2.2 million-tonne-per-annum facility is being transformed from a former nickel processing plant into a regional gold processing center.
Strategic Hub-and-Spoke Approach in Tight Gold Market
Horizon's conversion of the Black Swan hub is a key component of its broader hub-and-spoke strategy, aimed at establishing the company as a mid-tier gold producer in the WA Goldfields. With gold processing capacity in the Kalgoorlie region constrained due to soaring gold prices, currently at approximately A$7,255 per ounce, Horizon is strategically positioning itself to capitalize on market opportunities.
An additional ore parcel of about 30,000 tonnes grading 0.8 grams per tonne gold was treated during the quarter, with final reconciliation pending. Once completed, Horizon anticipates a final cash distribution in April, further bolstering its resources. If the Phillips Find numbers align with expectations next month, it will provide another significant contribution to Horizon's financial reserves as the Black Swan hub project transitions from planning to operational reality.
The cash influx from the Phillips Find mining campaign not only strengthens Horizon Minerals' available capital but also accelerates the development of the Black Swan Processing Hub as a regional center for gold processing. With the project now fully funded, Horizon is well-positioned to advance its strategic goals and enhance its control over future processing options in the competitive gold market.
