Horizon Gold Limited's progress on Gum Creek Project

Horizon Gold Limited (ASX: $HRN) has reported on its quarterly activities, highlighting the ongoing work to improve the economic outcomes of the Gum Creek Project scoping study. The company is focused on mine scheduling work to reduce initial pre-strip mining, dewatering costs, and sustaining capital expenditure. The scoping study has shown the Gum Creek Gold Project to be a robust viable stand-alone mining operation, supporting the commencement of a Feasibility Study. The Project, located in the Mid-West Region of Western Australia, covers 504km2 of granted tenure over the highly prospective and underexplored Gum Creek greenstone belt, historically producing more than 1 million ounces of gold and currently hosting a gold resource of 44.45Mt @ 1.50g/t Au for 2.14 million ounces.

Executive commentary on Gum Creek Project

The work completed during the quarter supports our view that the Gum Creek Gold Project can be a robust viable stand-alone mining operation. We are focused on reducing pre-production capital expenditure and evaluating grade cutoff options and processing throughput rates. The completion of the scoping study has provided compelling financial outcomes, including an initial open pit mine production target of 24.46Mt @ 1.13g/t Au for 888,000 ounces, a pre-tax cashflow of A$574M, pre-tax Net Present Value at an 8% discount rate (NPV8) of approximately A$318M, a pre-tax IRR of 31.5%, and a payback period of 3.0 years from commencement of mining.

Summary of Horizon Gold's Gum Creek Project update

Horizon Gold Limited (ASX: $HRN) is making significant progress with the Gum Creek Project, focusing on mine scheduling work and the commencement of a Feasibility Study. The scoping study has demonstrated compelling financial outcomes, indicating the project's robust viability as a stand-alone mining operation. The company is evaluating options to reduce pre-production capital expenditure and has commenced geological modelling and wireframing of the gold mineralisation. Horizon Gold also secured a short-term funding facility of up to $1,000,000, demonstrating its commitment to advancing the Gum Creek Project. The Project retains significant upside, with potential for extending the proposed mine life through underground mining and additional drilling at the 12 resource areas not included in the scoping study. Horizon Gold's cash at hand balance of $219,000 as at 30 June 2024 provides a solid foundation for its ongoing activities.