Gold companies make progress on WA mines

Horizon Minerals has begun early stages of mining at its Boorara gold project, with first production expected in July, while explorer Bardoc Gold says a definitive feasibility study for its namesake project in Kalgoorlie is underway.

Nedlands-based Horizon Minerals says it has received all necessary approvals to begin mining at Boorara, appointing local contractor Hampton Mining and Civil to complete open pit mining and haulage works.

First ore is expected this month, with production at the nearby Lakewood Mill scheduled for July.

Horizon expects initial toll milling to be between 8,500-9,000 ounces of gold at an average 91.5 per cent metallurgical gold recovery and all-in sustaining cost (AISC) of between $1,640-$1,690/oz.

At the current $2,600 per ounce gold price, stage 1 of Boorara production is expected to generate $7.1 million in free cash flow within the 2021 financial year.

“The commencement of mining at Boorara is a significant milestone for the company enabling gold production and cash generation in 2020 at a time of record high Australian dollar gold prices,” managing director Jonathan Price said.

He said Horizon would use cash generated from the initial toll milling to fund a resource growth drill program and consolidated feasibility study.

Horizon’s shares closed down 1.2 per cent to trade at 8.4 cents.

Meanwhile, Bardoc Gold is targeting mining at its Kalgoorlie project for the third quarter of 2021, with a definitive feasibility study for the 3Moz project well underway.

Chief executive Robert Ryan says recent optimisations are showing signs that the company can increase its ore reserves.

“With optimisation also to be conducted on our key satellite deposit, the Bardoc gold project has all the ingredients to be a truly long-life mining operation,” he said in an ASX announcement.

Mr Ryan said he expected a resource update in the third quarter of the current financial year and signing of an offtake agreement in Q4.

The final DFS is scheduled to complete in Q1 2021.

Shares in Bardoc closed down 1.3 per cent to trade at 7.7 cents.