Horizon Minerals Limited (Horizon or the Company) has executed a Binding Tenement Sale Agreement with private consortium NBT Metals Pty Ltd for the acquisition of the Kalpini gold project for a total cash consideration of $2.75 million funded from existing cash reserves.
The Agreement remains 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 [1].
Kalpini is located approximately 65 kilometres north-east of Kalgoorlie in the Eastern Goldfields of Western Australia and 50 kilometres by existing roads to the Company’s 100 per cent owned Boorara gold project.
The project comprises granted mining lease M27/485 and miscellaneous lease L27/88 and covers approximately 585 hectares.
The main ore deposits within the project are Gambia, Atlas and Camelia.
Kalpini has a Historic JORC 2004 Mineral Resource (before depletion) currently under review by Horizon of 4.6 Million tonnes (Mt) grading 1.7 grams per tonne (g/t) of gold (Au) for 255,600 ounces (oz) [2].
Subsequent to release of the resource in 2012, Stage 1 of mining the Gambia pit was completed in 2019 producing approximately 39,000oz with a mill reconciled grade of 2.62g/t Au and a calculated gold recovery of 95.1 per cent.
Horizon notes that Kalpini has significant exploration potential along strike and at depth with infill, validation and extensional drilling planned to commence in the current December Quarter [1].
The acquisition aligns with Horizon’s strategy of further regional consolidation and the acquisition of advanced development assets within a 75-kilometre radius of the proposed Boorara Mill [1].
Kalpini will now join Boorara, Rose Hill, Binduli and Teal as Horizon’s core projects under evaluation as part of the consolidated Feasibility Study due for completion in June 2021 [1].
Horizon’s Managing Director, Jon Price, said that the Company’s core focus remains firmly set on developing a stand-alone gold production business in the Kalgoorlie and Coolgardie regions and this acquisition aligns with this focus and their strategy of further regional consolidation of advanced development assets in close proximity of the proposed Boorara Mill.
“The Kalpini gold project has had considerable work completed in the past, including resource modelling, mining, processing and environmental studies which enables rapid advancement of the deposits for inclusion into the consolidated Feasibility Study,” Mr Price said.
“We look forward to completing the technical review of the geological models, further drilling and updating the resource. Future drilling will also test extensions along strike and at depth where we see significant opportunity to grow the deposits and reassess their development in the current high gold price environment.”
[1] See Cautionary and Forward Looking Statements on Pages 1 and 11 here.
[2] As reported by KalNorth Gold Mines Ltd to the ASX on 16 July and 24 October 2012, see also cautionary statement on Pages 1 and 8 here.
