Horizon Minerals Limited: Third Boorara Milling Campaign Nets $3.6 Million Cash

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

HIGHLIGHTS

- Third 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 Crown Jewel, Regal East and Regal West trial pits over a 25 day period with excellent mill performance

- Total ore milled of 50,274 dry tonnes at a mill reconciled grade of 1.62g/t Au with mined grades improving with depth in line with expectations

- Gold produced totalled 2,491 ounces at a calculated gold recovery of 95%, well above the modelled recovery of 91%

- Revenue received from gold sales of $6.1 million at an average gold price of $2,466 per ounce

- Campaign generated $3.6 million in net cash after haulage and toll milling expenditure with all mining related costs expended in the September Quarter 2020

- The final milling campaign is scheduled to commence in mid-January 2021, comprising the remaining high grade ore and a parcel of low grade material to test grade allocation

- A full production and cost reconciliation will be completed after the final milling campaign with remaining ore stockpiled for treatment at the proposed Boorara Mill in the future

- All reconciliation data and pit mapping information will be incorporated into an updated Mineral Resource Estimate expected for release in the March 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 increases to $17 million plus $5.3 million in listed investments

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

"It is extremely pleasing to see the mill grades increasing with depth and generating cash with the Company fully funded to develop our longer term production plan being assessed as part of the consolidated Feasibility Study underpinning a stand-alone mill."

"The trial has provided a greatly improved understanding of the ore body and we see significant potential to grow Boorara along strike to the south and north and test the depth potential below the 180m open pit limit currently being evaluated as part of the mining optimisation and design studies."

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 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 ultimate aim of the trial mining and toll milling from Boorara is to verify the tonnage and grade uplift potential when compared to the 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 third milling campaign commenced on 5 November 2020 and ran for 25 days to 29 November 2020 with first gold poured on 12 November 2020. Milling performance has again been excellent with throughput averaging 87tph, gravity recoveries at 35% and reagent consumption within expectations. The campaign comprised treatment of Crown Jewel, Regal East and Regal West deposits.

Mill reconciliations have now been completed with a total of 50,274 dry tonnes processed at a reconciled mill grade of 1.62g/t Au increasing with depth in line with expectations.

Overall gold recoveries exceeded expectations with a calculated recovery of 95%, above the modelled recoveries of 91%.

Gold produced from the campaign totalled 2,491 fine ounces with all gold sold at an average price of A$2,466 per ounce generating revenue of A$6.1 million. All mining and site costs were expended in the September Quarter with the third campaign generating $3.6 million in net cash after haulage and toll milling costs.

The final milling campaign will commence in mid-January comprising the remainder of the high grade ore and a parcel of low grade material to test the effectiveness of the grade allocation process.

Pit mapping and geological review of the mined trial pits is complete and will be used with the complete mill reconciliation data to update the Boorara geological model and Mineral Resource Estimate, expected for release in the March 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 June Quarter 2021.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/7BF65X5G

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