Horizon snaps up WA gold project

Horizon Minerals has signed an agreement to buy a gold project in Western Australia for $2.8 million.

The deal is for the Kalpini project, which is owned by private consortium NBT Metals. It is located 50 kilometres north east of Horizon’s wholly owned Boorara project and covers 585 hectares.

Managing director Jonathan Price said Horizon's focus remained on developing a standalone gold production business.

Horizon is looking to grow planned production and mine life at its Boorara project.

“This acquisition aligns with this focus and our strategy of further regional consolidation of advanced development assets in close proximity of the proposed Boorara Mill,” Mr Price said.

He said the project has had considerable work completed in the past including resource modelling, mining and environmental studies.

Horizon will complete the technical review of geological models, further drilling and a resource update.

“Future drilling will also test extensions along strike and at depth where we see significant opportunity to grow the deposits and reassess their development in the current high gold price environment," Mr Price said.

The Kalpini project comprises the Gambia, Atlas and Camelia deposits.

Kalpini has an historic JORC mineral resource (before depletion), currently under review by Horizon, of 4.6 million tonnes at a grade of 1.7 grams per tonne of gold for 255,700 ounces.

Horizon said it would fund the acquisition using existing cash reserves.