Horizon Minerals consolidates tenure in Kalgoorie and Coolgardie goldfields with acquisitions and divestments

Horizon Minerals Ltd (ASX:HRZ) has completed a number of acquisitions and divestments in line with its regional consolidation strategy focused on gold in the Western Australian goldfields. The company completed a tenement sale agreement with a private consortium for the acquisition of the Phoenix Gold Mine and also executed a sale agreement with Tasex Pty Ltd for the acquisition of the Parkeston and Perkolilli prospects. Horizon was granted Kanowna West exploration license E26/220 now granted and it acquired Broadarrow prospecting Licence P24/5348 along with three Blue Dam prospecting licences. At the same time, the company completed the divestment of non-core area 54 prospect and of prospecting licence P24/5116 immediately west of the Eureka gold mine. “Building the asset portfolio” Horizon managing director Jon Price said: “Horizon’s intimate knowledge and experience in the WA goldfields region has enabled a number of value accretive acquisitions to be completed in line with our regional consolidation strategy. “The company is also pragmatic and open to the divestment of non-core assets that have another natural owner and the deal with Warriedar/TNT Metals enables them to progress with development plans at Eureka with Horizon shareholders retaining upside through our TNT shareholding.” “The Horizon team has done an excellent job building the asset portfolio with these latest deals essentially cash positive and we will continue to work with our neighbours for mutual gain.” Transaction summary Kalgoorlie region At Parkeston and Kanowna South in the Kalgoorlie region, four new and contiguous prospecting licences have been added to the Horizon portfolio for $85,000 cash. Kanowna West exploration license E26/220 now granted Broadarrow prospecting License P24/5348 acquired for $8,000 cash and three Blue Dam prospecting licenses acquired for $9,000 cash. Tenure covers 20 square kilometres area contiguous with the company’s 100% owned Boorara project. These tenements mostly sit on the edge of the Panglo Basin and the Parkeston tenements, in particular, are on the prospective Boorara Shear. Target generation studies have commenced with initial drilling expected in 2021. Coolgardie region In the Coolgardie region, the company recently completed a transaction to purchase the historic Phoenix underground goldmine for $80,000. Phoenix goldmine is spread over 119 hectares area and occurs in the same stratigraphic sequence as the proven Lindsays - Bayleys – Prices – Kings Cross trend) and has historically been worked as a small narrow vein underground mine with historic production grades over 50g/t gold and limited exploration below 100 metres depth. The geology comprises an east-west sequence of mafic and ultramafic rocks with associated felsic porphyries and black shale horizons. A detailed review of the previous work and field assessment is currently ongoing with new targets expected to be drilled in 2021. The Area 54 tenement group (E16/492, E16/499) are non-core tenements and were recently divested to a private company Gold Tiger Ltd to allow Horizon to focus on the more prospective Yarmany group. Other projects The company also completed the divestment of prospecting License P24/5116 immediately west of the Eureka gold mine to Warriedar Mining Pty Ltd for $200,000 in shares. Warriedar acquired by TNT Mines Ltd (ASX:TIN) with Horizon now holding 1.52 million shares in TIN. The more prospective tenements centred at Capricorn have been retained and new four-year extensions granted. Since 2016, the company has added over 600 square kilometres tenure to the asset portfolio on major geological structures, all located within 75 kilometres of the proposed Boorara mill site being evaluated as part of the consolidated Feasibility Study. The aim is to build a strong pipeline of development assets underpinning a long-term sustainable production profile and adding to that pipeline organically through large scale resource growth and new discovery exploration programs.