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Colin Hay

Horizon Minerals (ASX: HRZ) has entered into a binding Toll Milling Agreement (TMA) with FMR Investments to treat 200kt of Horizon ore from the Cannon underground gold project or other deposit.

Horizon will arrange contract mining and hauling of ore from Cannon for ore processing at FMR’s 1.0Mtpa Greenfields Mill, located ~67km by road from the Cannon Project northeast of Coolgardie and 30km southwest of Kalgoorlie-Boulder in WA.

An agreed 200kt of ore will be processed over a period of eight months commencing in the December 2024 quarter.

Pre-production activities including dewatering of the open pit in preparation for underground mining at Cannon are already underway with the project fully environmentally permitted.

The TMA has flexibility that Horizon can treat ore from projects other than from Cannon. This may include Horizon’s own current resources or those acquired through the proposed merger with Greenstone Resources, provided sufficient notice is provided to FMR.

“We are very pleased to have converted our 200,000 tonne allocation with FMR into a formal Toll Milling Agreement, and look forward to working closely with them as ore deliveries will commence later this calendar year,” CEO Grant Haywood said.

“This agreement is in addition to our 1.4Mt ore sale agreement with Paddington announced a week ago. Together this will see us generating cash flow from two fronts in this fantastic gold price environment before the end of 2024.”

AMC Consultants have been engaged and undertaken a review of the Cannon Ore Reserve and will progress the revised key financial outcomes for the June 2024 Quarter.

The company is finalising engagement with underground mining and haulage contractors to finalise tenders for Cannon.

Meanwhile, Horizon is also in the process of completing the proposed merger with Greenstone Resources to enhance the long-term production profile with development ready high-grade projects.

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