Horizon boosts bottom line with toll milling
ASX-listed gold producer Horizon Minerals has boosted its bottom line by $1.35 million after toll milling stockpiled low-grade ore from its Boorara open pit mine in the renowned WA Goldfields. The company reports the processing of nearly 100,000 tonnes of low-grade stockpiles from the recent trial mining of the Boorara deposit is now complete.
The ore grade reconciled nine per cent above the mine claimed grade and provided further valuable geological information on grade allocation processes. Gravity recovery was again high at 35 per cent with reagent consumption and throughput rates in line with expectation. Since the turn of the new year the price of gold has been sitting above $2,500 an ounce that encouragingly exceeds the value of $2,000 an ounce outlined in the company’s Boorara Stage 1 Feasibility Study 2020.
Running the trial mined dirt through the Lakewood toll milling facility generated a welcome pay day in a strong gold price environment. More importantly, the operation aimed to de-risk the company’s larger development plans for the Boorara deposit.
The toll mill operation was a solid test of the economics and will help guide the company in its decision to outlay a large amount capital in constructing its own mill. Whist the toll mill campaigns were profitable, pushing its dirt through an inhouse mill could capture more margin for the company and its shareholders.
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