Horizon Gold's Drilling Program Confirms High-Grade Gold at Gum Creek Project
Horizon Gold Limited (ASX: HRN) has announced promising results from its recently completed drilling program at the Gum Creek Gold Project in Western Australia, confirming and extending gold mineralisation across multiple prospects within the project's 2.14 million ounce gold resource.
Drilling Program Delivers Outstanding Gold Intercepts
The company has completed its 13,183-metre drilling program, with the final 37 RC holes for 2,918 metres drilled during the June quarter. The program aimed to upgrade resource confidence across the project's extensive gold resource base and test extensions of high-priority targets.
Horizon Gold's drilling results returned numerous significant gold intercepts across several key prospects:
Swan/Swift Prospect Highlights:
- 22m @ 3.18g/t Au from 2m including 5m @ 9.71g/t Au from 10m
- 10m @ 4.47g/t Au from 74m including 5m @ 7.74g/t Au from 76m
- 10m @ 3.55g/t Au from 18m including 3m @ 11.18g/t Au from 18m
Howards Prospect Highlights:
- 28m @ 3.88g/t Au from 74m including 12m @ 8.19g/t Au from 77m
- 38m @ 1.25g/t Au from 48m including 13m @ 2.06g/t Au from 60m
Reliance and South Reliance Prospects Highlights:
- 11m @ 6.90g/t Au from 27m including 3m @ 22.60g/t Au from 28m
- 16m @ 4.35g/t Au from 32m including 5m @ 12.88g/t Au from 32m
These results confirm historical drill intercepts and are expected to increase resource confidence levels within each of the resource models, potentially leading to resource upgrades in the coming months.
Understanding Gold Intercepts: What They Mean for Investors
When companies report drill results, the notation "X metres @ Y g/t Au" indicates the length of the mineralised intersection and the grade of gold within that intersection. The higher the grade (g/t) and the longer the intersection (metres), the more significant the result typically is.
For context, many operating gold mines in Australia have average grades between 1-2 g/t Au, making intercepts above 3 g/t Au potentially economically significant, especially when they occur at shallow depths. Similar high-grade results were recently observed in Riversgold's Northern Zone gold project, highlighting the strong potential across Western Australia's goldfields.
The presence of higher-grade zones within broader mineralised envelopes (indicated by "including" sections) can significantly improve the economics of a potential mining operation.
Horizon Gold's drilling results include numerous intercepts above 3 g/t Au, with some spectacular high-grade zones exceeding 10 g/t Au, suggesting the potential for economically viable mining operations at Gum Creek.
Feasibility Study Progress and Development Timeline
Horizon Gold reports that work on the Gum Creek Feasibility Study remains on schedule for completion in early 2026. Key components currently being advanced include:
- Geotechnical studies and metallurgical test work nearing finalisation
- Environmental surveying progressing well
- Mine design work continuing
- Heritage evaluation work advancing
- Water management test work underway
Water bore drilling is currently in progress, with pump tests scheduled to commence in August 2025 before producing a site-wide water balance model.
The company has outlined plans for additional resource expansion drilling at several of the 12 open-pittable resource areas not included in the 2024 Scoping Study, potentially extending the mine life beyond what was initially contemplated. Furthermore, Great Boulder Resources has been implementing similar expansion strategies at their nearby projects.
Financial Position and Capital Raising
To fund its ongoing development activities, Horizon Gold has secured firm commitments from institutional and high-net-worth investors to raise A$5 million at A$0.48 per share through a private placement. Additionally, the company has announced a 1-for-10 non-renounceable entitlement offer to raise approximately A$7.0 million at the same price.
As of June 30, 2025, the company had a cash balance of A$503,000 and had drawn down A$500,000 from a short-term funding facility provided by its major shareholder, Zeta Resources Limited.
The Investment Case for Horizon Gold
Horizon Gold presents a compelling investment case based on several key factors:
Substantial Resource Base
With a current gold resource of 44.45 million tonnes at 1.50g/t for 2.14 million ounces, Gum Creek represents one of the significant undeveloped gold projects in Western Australia. The resource spans 37 open pit and three underground gold mines across the 524km² project area.
Historical Production Credentials
The Gum Creek Gold Project has historically produced more than 1 million ounces of gold, demonstrating the area's proven ability to host economic gold deposits. In a similar vein, Auric Mining has recently reported record profits from their gold production operations in the region.
Exploration Upside
Recent drilling results confirm the potential for resource growth, with many prospects showing mineralisation that remains open along strike and at depth. The company has plans to test high-grade underground targets including Kingfisher and Omega, which could further enhance the project's economics.
Clear Path to Development
With the Feasibility Study on track for completion in early 2026, Horizon Gold has a well-defined timeline to potentially bring Gum Creek into production. The company believes the project will be a "robust, viable stand-alone mining operation," with recent high gold prices strengthening the economic outlook from the March 2024 Scoping Study.
Why Investors Should Follow Horizon Gold
Horizon Gold represents an opportunity to invest in an advanced gold development project in a tier-one mining jurisdiction. The company's systematic approach to resource definition, coupled with its clear development timeline and recent successful capital raise, positions it well to advance the Gum Creek Gold Project toward a production decision.
With gold prices trading near all-time highs and the scarcity of substantial undeveloped gold projects in Western Australia, Horizon Gold offers investors exposure to a potentially significant new gold mining operation in a proven gold-producing region. Additionally, Warriedar Resources recently uncovered high-grade antimony at their gold deposit, demonstrating the potential for valuable by-products in the region.
The upcoming milestones, including resource updates, completion of the Feasibility Study in early 2026, and further exploration results from high-grade targets, provide multiple potential catalysts for share price appreciation in the near to medium term. This multi-project approach mirrors S2 Resources' strategy of running concurrent drilling campaigns to maximize discovery potential.
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