Horizon Minerals Limited: Final Boorara Toll Milling Campaign nets $1.2 Million Cash

Perth, Australia - Horizon Minerals Ltd. (ASX:HRZ) is pleased to announce completion of the fourth and final milling campaign from trial mining at the Boorara Gold Mine, 10km east of Kalgoorlie-Boulder in the goldfields of Western Australia (Figure 1*).

HIGHLIGHTS

- Final toll milling campaign completed successfully at the Lakewood processing facility, 7km west of the Boorara gold mine in the Western Australian goldfields

- Campaign comprised ore treatment from Regal East trial pit at Boorara and a parcel of low-grade ore to test grade allocation from the ore block models

- At Regal East, 14,962 dry tonnes were processed with a mill reconciled grade of 1.6g/t Au and calculated recovery of 94.2%, in line with expectations

- Low grade parcel reconciled 6% above the model with 17,334 dry tonnes processed with a mill reconciled grade of 0.9g/t Au and 92.0% calculated recovery

- Gold produced totalled 1,182 ounces generating A$2.8 million in revenue at an average gold sales price of A$2,356 per ounce

- Campaign generated A$1.2 million in net cash after haulage and toll milling expenditure with all mining related costs expended in the September Quarter 2020

- Final geological and economic reconciliation from the Boorara trial now being completed and expected for release in the current March Quarter 2021

- All reconciliation data and pit mapping information being incorporated into an updated Mineral Resource Estimate expected for release early in the June Quarter 2021

- A maiden Ore Reserve for Boorara will then be compiled as part of the consolidated Feasibility Study assessing a larger scale development and a stand-alone mill

- Cash at bank of A$10 million plus A$5.2 million in listed investments and no debt

Commenting on the final milling campaign, Horizon Managing Director Mr Jon Price said:

"The Boorara trial mining and toll milling exercise has provided a greatly improved geological understanding of this complex mineralised system and confirmed the presence of multiple flat lying cross cutting structures that will now be incorporated into an updated Resource model."

"In addition, testing the ore through a mill gives us real time metallurgical recoveries, reagent consumptions and optimal plant design parameters and costs as we advance the consolidated Feasibility Study. Generating cash at the same time is the icing on the cake and we now look forward to releasing the updated resource and reserve in coming months."
The ultimate aim of the trial mining and toll milling from Boorara is to verify the tonnage and grade uplift potential when compared to the current Boorara global resource model. Results to date have demonstrated this potential and will inform an updated Mineral Resource Estimate and a maiden Ore Reserve as part of the consolidated Feasibility Study ahead of a development decision inclusive of construction of a standalone processing facility at Boorara.

The final milling campaign commenced on 19 January 2021 and ran for 17 days to 4 February 2021 with first gold poured on 28 January 2021. Milling performance has again been excellent with throughput averaging 87tph, gravity recoveries at 38% and reagent consumption within expectations. The campaign comprised treatment of the final high-grade ore from the Regal East pit and a parcel of low-grade material to test ore grade allocation from the mine block models.

Mill reconciliations have now been completed with a total of 32,296 dry tonnes processed at a reconciled mill grade of 1.22g/t Au. Regal East high-grade ore reconciled at 1.60g/t Au, in line with grade control modelled grades of 1.62g/t Au. The low-grade parcel reconciled at 0.90g/t Au, exceeding the claimed grades of 0.85g/t Au and providing valuable insight into the orebody and how the future grade allocation process can be improved for the larger scale development.

Overall gold recoveries exceeded expectations with a calculated recovery of 93.4%, above the modelled recoveries of 91.0%.

Gold produced from the campaign totalled 1,182 fine ounces with all gold sold at an average price of A$2,356 per ounce generating revenue of A$2.8 million. All mining and site costs were expended in the September Quarter with the third campaign generating A$1.2 million in net cash after haulage and toll milling costs.

A full geological and economic summary is now being completed for release in the current March Quarter 2021.

Pit mapping and geological review of the mined trial pits is complete and will be used with the completed mill reconciliation data to update the Boorara geological model and Mineral Resource Estimate, expected for release early in the June Quarter 2021. A maiden Ore Reserve will then be compiled for the longer-term production plan being assessed as part of the consolidated Feasibility Study due for completion in the September Quarter 2021.

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About Horizon Minerals Limited:

Horizon Minerals Ltd. (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.

Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.

Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.

Source:
Horizon Minerals Ltd.

Contact:

Jon Price Managing Director T: +61 8 9386 9534 E: jon.price@horizonminerals.com.au Michael Vaughan Media Relations - Fivemark Partners T: +61 422 602 720 E: michael.vaughan@fivemark.com.au