Horizon Minerals Limited: Resets Growth Strategy with Gold Production in 2020

Perth, Australia - Horizon Minerals Ltd. (ASX:HRZ) ("Horizon" or "the Company") is pleased to provide an update on its growth strategy and outline key production and resource growth milestones for 2020 and beyond. The Company is focussed on gold in the Western Australian goldfields and has assets covering 850km2 on major geological structures in close proximity to the city of Kalgoorlie-Boulder (Figure 1*). An updated global Mineral Resource Estimate is expected in the June Quarter 2020.

Bringing Boorara Stage 1 into production

The 18,000m grade control drilling program as announced to the ASX on 29 October 2019 was completed in December 2019 with results expected in the current March Quarter 2020. The drilling was conducted on an average 5m x 10m drilling spacing to a maximum depth of 54m (Figure 2*). Boorara is a geologically complex mineralised system with a main NNW striking zone and multiple stacked flat lying conjugate vein sets.

A small scale trial pit to 20m depth was mined in the Royal (previously Southern Stockwork) area at Boorara in 2016, with ore up to 15m wide mined on 2.5m high flitches 1. A close spaced grade control program undertaken prior to mining yielded planned trial pit grades well above the in-situ resource grade estimate of 1g/t. Ore mined from the trial pit was processed at FMR Investments' Greenfields Mill which reconciled at 30,239 tonnes at 1.73g/t Au of high grade ore, with an additional 13,095 tonnes at 0.68g/t Au of low grade material still stockpiled at Boorara.

The aim of the current grade control program is to further test the grade uplift potential and enable a new geological model to be compiled for mine optimisation, design and economic analysis. On completion, expected in the current March Quarter 2020, the aim is to mine up to three starter pits and process the ore at a third party toll mill in close proximity. Statutory approvals and toll milling negotiations with multiple potential milling partners are well advanced enabling mining to commence in the June Quarter and milling in the September Quarter 2020.

The resultant mine and mill reconciliation data will then be used to compare to the global resource model ahead of the larger scale mine development assessment being undertaken as part of the Feasibility Study due for completion in the December Quarter 2020.

Production guidance and project economics will be provided on completion of the Stage 1 evaluation in the current March Quarter 2020.

Growing the production pipeline

A number of 100% owned projects have the potential to add significant mining inventory as per Figure 3* below. Three projects have been prioritised based on current resource status, grade and open pit and underground upside potential.

Further stages of Boorara mine development will be determined by the outcome of the mining, pit mapping and mill reconciliations of Stage 1. The Boorara resource model will be updated during this period and fed into the Feasibility Study.

The Crake project, part of the Binduli project area (Figure 1*) has grown significantly in 2019 after a number of highly successful drilling programs. Internal optimisations have generated positive results and provided extensional drill targets along strike and at depth. Further infill and extensional RC and diamond drilling is planned in H2 2020.

The Rosehill project, recently acquired through an asset swap with Northern Star Resources Ltd., is a high priority open pit and underground deposit in Coolgardie. The most recent resource information on Rosehill was compiled by Westgold Resources Ltd. in its ASX release titled "2017 Annual Update of Mineral Resources & Ore Reserves" dated 4 September 2017. The Company has now commenced an internal and independent review of the geological models for Rosehill, Gunga West and Golden Ridge (Figure 1*) projects and expects to provide a resource update on these projects in the current March Quarter 2020.

Resource growth through exploration and acquisition

Horizon has developed priority resource growth and new discovery targets for drilling in 2020. These include Boorara near mine (including Balagundi, Kanowna South, Golden Ridge and Boorara South), Coote, Darter and Honeyeater within the Binduli gold camp, Capricorn, Baden Powell and Teal.

Priority is to target areas hosting free milling ore within a 75km radius of Boorara with grade above 2g/t Au and strip ratio below 10:1 for open pit and grades above 4g/t Au for satellite underground projects.

Drilling in the March Quarter will be limited to Rosehill as the Company focusses on Boorara mine development. The majority of the planned drilling will commence in H2 2020 with the aim for this drilling to be funded from cash flow, consistent with the development and cash generation strategy implemented for the successful Teal gold mine in 2017-2018.

The Company will continue to pursue value accretive acquisitions that meet the disciplined criteria of value, continuity with existing tenure, location on major geological structures and proximity to a potential centralised mill at Boorara. Consolidation across the sector needs to continue and the Company will continue discussions with neighbouring companies and collaborate where mutual gain can be achieved.

Joint ventures

The Company's strategy for non-gold projects is typically to divest or farm out to avoid management distraction, reduce costs and to retain future upside exposure. The current joint venture with Richmond Vanadium Technology (RVT) covering the 2.6Bt Richmond vanadium project in central north Queensland is in its second stage of earn in whereby RVT spends A$6m by March 2021 to earn up to 75%.

Other projects in the portfolio include the Nanadie Well copper-gold-PGE project and the Nimbus silver-zinc project. The Company is currently assessing options for these projects and holding preliminary discussions with interested joint venture partners.

News flow and milestones

As the strategic plan is put in to action, significant news flow can be expected throughout 2020 as per below:

March Quarter - Boorara infill drilling results, new geological model, mine optimisation, design and economic modelling results, drilling results from Rosehill, updated resource estimates for Rosehill, Gunga West and Golden Ridge.

June Quarter - decision to mine stage 1 of Boorara and mine commencement, Richmond vanadium JV update, updated Mineral Resource Estimate

September Quarter - Aiming for first gold production and cash generation from Boorara, commencement of large scale resource and reserve growth drilling program.

December Quarter - drilling results, resource and reserve update, consolidated Feasibility Study results including options for stand-alone or collaborative centralised processing plant.

*To view tables and figures, please visit:
https://abnnewswire.net/lnk/0JS2C8U3

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 Tel: +61-8-9386-9534 E: jon.price@horizonminerals.com.au Michael Vaughan Media Relations - Fivemark Partners Tel: +61-422-602-720 E: michael.vaughan@fivemark.com.au