Strategic Acquisition Bolsters Development Pipeline Around Processing Hub
Horizon Minerals (ASX: HRZ) has executed a binding agreement to acquire 100% interest in a suite of gold projects strategically positioned near its wholly-owned Black Swan processing facility.
The $2.81 million acquisition from Yandal Resources gold projects acquisition (ASX: YRL) includes the Gordons, Mt Jewell, Malone and Mulgarrie gold projects, comprising 34 granted licenses covering approximately 77 square kilometers of highly prospective ground.
The centerpiece of the acquisition is the Gordons Dam project, located just 10km west-south-west of the Black Swan processing plant. This project includes an established mineral resource of 365,000 tonnes grading 1.7 g/t Au for 20,000 ounces, with mineralisation remaining open at depth and along strike.
Optimizing the Black Swan Hub Strategy
Horizon Minerals is positioning itself as a standalone gold producer by refurbishing and repurposing the Black Swan processing plant into a gold plant with a nominal throughput of 1.5 million tonnes per annum. The company is currently undertaking a Pre-Feasibility Study to develop a five-year life of mine plan to feed the plant.
Managing Director and CEO Grant Haywood emphasised the strategic importance of the acquisition: "We are pleased to acquire these projects in close proximity to our processing infrastructure. Our key focus is completing study work with the aim of generating a five-year life of mine plan processing through our Black Swan processing plant."
High-Potential Exploration Package
Beyond the established resource at Gordons Dam, the acquisition package includes multiple advanced drilling targets, including the Star of Gordon and Malone prospects. The entire project area sits within a prospective Archean Greenstone sequence that hosts the Mulgarrie and Gordon Sirdar Gold Mines.
The primary structural feature of the Project is the Gordon Sirdar Shear Zone (GSSZ) that extends throughout the entire area and is associated with numerous gold prospects. This major structural feature is interpreted to be a key exploration target for further gold prospectivity.
Haywood noted: "In addition to the resource at Gordons Dam, these assets complement our current large strategic land holdings in the WA goldfields. We see great potential in this area for further resource growth along with enormous exploration upside."
Understanding the Gordons Dam Resource
The Gordons Dam deposit represents a promising anchor asset within the acquired package. Mineralisation occurs in multiple forms:
- Within laterite
- In transported cover sediments (paleochannel material)
- Within weathered and fresh bedrock
The primary mineralisation is found in quartz veins at the margins of pillow basalts intruded by later microgranite/porphyrys. The mineralisation extends from approximately 30m below surface to a current maximum depth of 120m, with an overall strike length of approximately 320m.
What is a Mineral Resource Estimate?
A Mineral Resource Estimate (MRE) represents the concentration of mineralised material of economic interest in the earth's crust. This estimate is calculated based on geological data, including drill holes, sampling, and analytical results.
For investors, an MRE provides a standardised way to understand the potential value of a mineral deposit. The classification system (Inferred, Indicated, Measured) reflects the level of geological confidence, with Inferred being the lowest level of confidence.
The Gordons Dam resource is classified as Inferred, reflecting the current drill density and geological understanding. Additional drilling and technical work would be required to upgrade this classification to higher confidence categories before moving toward mining studies.
Deal Structure Maintains Financial Flexibility
The $2.81 million acquisition will be funded through a combination of:
- $0.2 million refundable cash deposit (already paid)
- $1.0 million cash payment at completion from existing reserves
- $1.61 million in Horizon shares at completion (issued at a 10% discount to the 15-day VWAP)
The transaction is expected to settle in the current September quarter, subject to standard regulatory approvals and ministerial consent for the transfer of tenements.
Understanding the Geological Setting
The Gordons Project area is located within the Boorara Domain of the Kalgoorlie Terrane, part of the larger Norseman-Wiluna Archean Greenstone Belt. This region is bounded by the Bardoc Shear Zone to the west and the Mount Monger Fault to the east.
The geology consists predominantly of a sequence of mafic, ultramafic and felsic rocks with numerous porphyry intrusions thrust against the large granite body of the Scotia-Kanowna Granite to the west.
For gold exploration, the key structural features are often the controlling factors for mineralisation. At the Gordons Project, the Gordon Sirdar Shear Zone (GSSZ) represents a major structural corridor that extends throughout the entire project area and is associated with gold deposits at Gordon Sirdar and Mulgarrie.
What's Next for Horizon Minerals?
Following the acquisition, Horizon will conduct a detailed review of all historical work as part of its due diligence process. This review will be incorporated into the company's strategic plan for prioritising future exploration programs.
The proximity of these assets to the Black Swan processing facility positions them as potential contributors to the company's goal of establishing a sustainable five-year production profile. Additionally, the extensive exploration potential across the acquired ground provides opportunities to expand the resource base over time.
Why This Acquisition Matters for Investors
Horizon Minerals is pursuing a clear strategy of regional consolidation around its Black Swan processing hub. This hub-and-spoke approach offers several advantages:
- Infrastructure leverage – Utilising existing processing infrastructure significantly reduces capital requirements for developing new resources
- Resource diversity – Building a portfolio of deposits reduces operational risk by providing multiple potential ore sources
- Exploration upside – The extensive land package in a proven gold region provides substantial growth opportunities
With a focus on becoming a standalone gold producer and a methodical approach to building its resource base, Horizon Minerals represents an emerging gold producer with a clear pathway to production while maintaining exploration upside in one of Australia's most productive gold regions.
Want to Capitalise on Horizon's Strategic Gold Acquisition?
Discover the full investment potential of Horizon Minerals' latest strategic gold project acquisition near their Black Swan processing facility. This $2.81 million deal not only adds 20,000 ounces of gold resources but positions the company for significant growth as they develop their hub-and-spoke production model in the WA goldfields. To learn more about this compelling investment opportunity and stay updated on Horizon's progress towards becoming a standalone gold producer, visit their investor hub today.
