Horizon Gold (ASX:HRN) Managing Director Scott Williamson outlined plans to restart the Gum Creek Gold Project, describing it as a “large-scale, high-grade restart” supported by an existing mining district, established infrastructure, and a feasibility study expected by the end of the half year.
Project overview and resource base
Williamson said Gum Creek is an existing gold mining area with an airstrip and a history of operations between 1989 and 2005. He described the project as having a current resource of 2.3 million ounces at 1.9 grams per tonne, with 71% in the indicated category. The company is focusing on two main mining areas:
- Gidgee Shear Zone: approximately 1 million ounces
- Howards: approximately 250,000 ounces
Feasibility study and development plan
Williamson said a bankable feasibility study is due at the end of the half year, positioning the project as “ready to build very soon.” The development concept centers on rebuilding processing capacity near the previously operated Gidgee Mill site.
He said the company plans to build a new 2.4 million tonne per annum carbon-in-leach (CIL) plant and to start with free-milling open pits. The old mill, he said, would be removed because its prior capacity of 600,000 tonnes per annum is “too small.” Williamson added that the plan would utilize the existing ROM pad and noted that previous operators left low-grade material that he suggested “is probably ore these days.”
Mining areas: Gidgee Shear Zone and Howards
Within the Gidgee Shear Zone, Williamson described three main ore bodies: Swan, Swift, and Kingfisher (about 7 kilometers south along the shear zone). He said previously operated oxide pits remain open along strike, providing potential for additional oxide exploration, and he emphasized interest in testing high-grade plunges at depth for underground potential.
For Swan and Swift, he said the zone contains over 700,000 ounces at over 2 g/t, with much of it expected to be mined from “one large open pit,” alongside evaluation of underground potential. At Kingfisher, he described a “significant ore body” at 2.65 g/t and said the company is pursuing open-pit mining while also drilling for down-plunge extensions, with assays pending. He added that existing underground development could allow Kingfisher to transition to underground mining “quite easily.”
At Howards, described as a “satellite” location south of the planned mill site, Williamson characterized it as a bulk tonnage, low strip ratio opportunity with more than 1.76 kilometers of strike already outlined and open in multiple directions.
Exploration and underground upside
Williamson said the initial study case would focus on open-pit mining over the first 7 to 10 years, with potential upside from underground development. He highlighted high-grade historical intercepts at Swan, including 7.4 meters at 60 g/t and 10.7 meters at 30 g/t, and said drilling to date has only reached about 300 to 400 meters, leaving room for deeper exploration.
He also discussed ongoing drilling at Omega, another previously operated underground mine within the belt. Williamson cited intercepts including 30 meters at 20 g/t, 13 meters at 10 g/t, and 10 meters at 10 g/t, and said current drilling is being conducted within meters of previous intercepts and near existing underground workings.
Production expectations and valuation commentary
Williamson described a base case target of 100,000 ounces per annum from open pits, with potential to increase production and head grade if underground mining is brought in earlier. He also compared Horizon Gold’s current implied valuation per ounce to peers, saying the company is “currently trading about $10–$100 an ounce” versus peer valuations of “$200–$300 an ounce,” and suggested re-rating potential as development milestones are achieved.
He concluded by emphasizing the project’s existing mining leases, which he said could help “fast-track the permitting process,” and noted the company’s board and technical team has experience building, owning, and operating mines in Australia and Africa.
About Horizon Gold (ASX:HRN)
Horizon Gold Limited engages in the exploration, evaluation, development, and production of gold deposits in Australia. Its flagship project is the Gum Creek gold project covering an area of approximately 663 square kilometers located within the Southern Cross Province of the Youanmi Terrane in Western Australia. The company was incorporated in 2016 and is based in West Perth, Australia. Horizon Gold Limited is a subsidiary of Zeta Resources Limited.
