Horizon Minerals (ASX: HRZ) has executed an open pit mining Joint Venture (JV) Agreement with BML Ventures for the Phillips Find Gold Project in WA.
The proposed mining project is 100% owned and located 45 km north-west of Coolgaride, Western Australia in the heart of the Western Australian goldfields.
“We are pleased to have partnered up with BML Ventures, who have a proven track record of delivering projects in the eastern goldfields of Western Australia,” Managing Director and CEO, Grant Haywood, 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.”
Mining and Processing
Of the three existing open pits at Phillips Find, it is proposed to cutback the Newminster and Newhaven open pits over the course of approximately 11 months. The fleet will be 120 tonne excavators and 100 tonne rigid dump trucks. Site facilities will be established by BML during the mobilisation phase.
Ore will be processed under Horizon’s existing toll milling agreement with FMR at the Greenfields mill.
BML will sole fund the project, and once costs have been recovered, surplus cashflow will be distributed to BML and the Company on a 50/50 basis.
Next Steps
Mobilisation to site shall commence, with site establishment and preproduction works also about to get underway whilst awaiting the Mining Proposal to be granted. Grade control drilling shall also commence in preparation for mining.