Horizon Gold Limited (ASX: HRN)
Abstract
Horizon Gold Limited (ASX: HRN) owns the Gum Creek Gold Project, 640 kilometres north-east of Perth in the East Murchison Mineral Field. The ground was the Gidgee Gold Mine, which ran from 1987 to 2005 under a succession of owners. The project holds a Mineral Resource of 2.30 million ounces at 1.89 grams of gold per tonne.[R1] A Mineral Resource is gold estimated to be in the ground. In the Samso Gold Regions Series the company carries the label Near-term producer, because it has a published feasibility study and a stated date for first gold.
The study is a Definitive Feasibility Study released on 22 July 2026. It plans open pit mining of free milling ore through a new 2.4 million tonne a year plant. Free milling ore gives up its gold with ordinary grinding and cyanide leaching. It forecasts 880,100 ounces of gold over ten years, a build cost of A$350.4 million, an all-in sustaining cost of A$2,995 an ounce and first gold in the second half of 2028. The all-in sustaining cost is what it costs to produce each ounce and keep the mine running. At a gold price of A$5,500 an ounce the study gives a net present value of A$1,307 million before tax and A$894 million after tax, at a 5 per cent discount rate.[R1] Net present value is the value today of the project's future cash flows. The plan is built on a first Ore Reserve of 728,400 ounces at 1.24 grams per tonne. An Ore Reserve is the part of the resource that the study shows can be mined at a profit.
