Horizon Minerals to commence mining at Phillips Find

As the price of gold continues to climb, Horizon Minerals Ltd (ASX: HRZ) has executed a joint venture (JV) agreement with BML Ventures Pty Limited (BML) to develop and mine two open pits at Phillips Find.

The company’s existing 200,000t toll milling agreement with FMR Investments Pty Ltd will be used for ore processing an eight-month period.

Mining is expected to commence in the September 2024 quarter, with first gold production planned for December 2024, subject to the current mining proposal being approved.

Horizon Minerals managing director and chief executive Grant Haywood says the company is pleased to be partnering up with BML Ventures.

“[They] have a proven track record of delivering projects in the Eastern Goldfields of WA,” he said.

“BML will be managing and sole funding the Phillips Find JV which greatly derisks the project for the company, particularly from a financial perspective.

“This agreement does not require any capital from Horizon and allows us to keep our focus on our Boorara startup.

“The Cannon project will be paused until sufficient cash flows are generated from our two production sites, Boorara and Phillips Find, to sole fund rather than joint venture.

“We look forward to generating cash over the next 19 months from two gold mining projects in this very strong gold price environment.”

Once costs have been recovered, surplus cashflow will be distributed to BML and Horizon Minerals on an equal basis.

Of the three existing open pits at Phillips Find, the company is proposing cutback of the Newminster and Newhaven open pits over 11 months, with the fleet being 120t excavators and 100t rigid dump trucks. Site facilities will also be established by BML during the mobilisation phase.

Mining at Phillips Find is independent of mining at Boorara, which is being treated at Norton Gold Fields’ Paddington mill.