Horizon Minerals Limited: Acquisition of Bulong South, Glandore and Cowarna Projects

Perth, Australia - Horizon Minerals Ltd. (ASX:HRZ) is pleased to announce it has executed a binding Tenement Sale Agreement with private mining company Aurenne Group Holdings ("Aurenne") for 100% interest in the Bulong South, Glandore and Cowarna gold projects in the Western Australian goldfields (Figures 2 and 3*).

Commenting on the significant acquisition, Managing Director Mr Jon Price said:

"Horizon's core focus remains firmly set on developing a stand-alone gold production business in the Kalgoorlie and Coolgardie regions and this significant acquisition aligns with our strategy of further regional consolidation of advanced, complementary development assets in close proximity of the proposed Boorara Mill.

"The Cannon underground gold project presents a high-grade near-term development opportunity that will now be incorporated into the consolidated Feasibility Study and can provide high grade ore feed in the early years to complement the base load Boorara deposit and the four advanced open pit and underground satellite projects currently under evaluation.

"We also see the potential for significant resource growth and exploration upside from the Bulong South, Glandore and exciting Cowarna project areas with multiple walk-up drill targets on major geological structures. Drill planning is now underway, and we look forward to providing further updates as we complete the transaction, update mine development studies and commence exploration drilling."

Bulong South contains the development ready high grade Cannon gold project (Figures 1 and 2*) which now joins the baseload Boorara project, Rose Hill, Binduli, Teal and Kalpini satellite deposits as core development projects under evaluation to underpin the proposed construction of a stand-alone processing plant at Boorara1.

The following sections provide a summary of the projects and the significant development and exploration potential of the project areas.

Bulong South and Glandore gold projects

Bulong South is located approximately 28km southeast of Kalgoorlie in the Eastern Goldfields of Western Australia (Figures 2 and 3*) and 10km east of the 100% owned Boorara gold project by existing roads. The project comprises three granted mining leases, two prospecting licences, two exploration licences and four miscellaneous leases covering a total area of approximately 180km2. The project includes the high-grade Cannon gold project and a significant number of historic mines and workings within the rich quartz vein system. Glandore sits 4km to the east of Bulong South (Figure 3*).

History

There are mine workings such as historic shafts, modern open cut pits (Cannon open pit) and trenches within the tenements that have been worked since the early 1900s with a significant amount of gold nuggets reported from local prospectors.

Previous exploration was undertaken by a number of companies and prospectors including Cyprus Gold Ltd and Roebuck Resources NL with a number of anomalies identified, shallow RAB drilling conducted and at least three areas of gold mineralisation intersected.

Southern Gold Ltd (ASX:SAU) discovered the Cannon deposit in 2008 as the northern strike extension of the George's Reward deposit held by Northern Mining Ltd and then Metals X Ltd. Open pit mining commenced at the Cannon and George's Reward deposits in August 2015 under a finance, mining and processing agreement with Metals X Ltd (now Westgold Resources Ltd.).

The Cannon open pit produced 53koz grading 3.02g/t Au and 91% metallurgical recovery with mining completed in June 2017. Southern Gold then completed an extensional drilling program and defined an updated underground Mineral Resource estimate as announced to the ASX on 9 October 2017.

An underground Feasibility Study and maiden underground Ore Reserve was completed in November 2017, updated in 2019 and announced to the ASX on 6 May 2019. During this period, Westgold sold its South Kalgoorlie assets, including its interest in the Cannon Mine, to Northern Star Resources Ltd. as announced to the ASX on 8 March 2018.

As announced by Southern Gold Ltd to the ASX on 10 December 2018, agreement was reached with Northern Star Resources Ltd. for the consolidation of the project area securing the tenure covering the strike extension of the Cannon shear zone.

In August 2019, Southern Gold announced the sale of the project and the Glandore and Cowarna tenements to private mining company Aurenne Group Holdings Ltd. Aurenne has completed a number of drilling programs across the tenement packages since the acquisition before deciding to divest the projects to focus on the Menzies region.

Geology

The projects are located within the Kurnalpi Terrane which forms part of the regionally extensive Norseman-Wiluna greenstone belt and sit in the western part of the Bulong ultramafic complex in the Boorara domain.

The Bulong South and Glandore projects are located in the western part of the Bulong ultramafic complex consisting of a 5km thick sequence of komatiitic lava flows made up of thick serpentinised peridotite in the centre of the complex, flanked by thin spinifex-textured komatiitic flows at the top of the sequence.

The Cannon Deposit is hosted within a sequence of ultramafic and high-Mg basaltic rocks intruded by a mafic-intermediate suite of lamprophyre dykes, and rarer dacitic dykes. The greenstone sequence strikes N-S while intrusions strike NNE-SSW with variable dips to the west and east. In the vicinity of the Cannon pit, a prominent N-S trending quartz vein extends for at least 1.5km to the southwest of Cannon and a numbers of smaller quartz veins sub-parallel to the main vein is also present.

*To view the full release including tables and figures, please visit:
https://abnnewswire.net/lnk/31PY1457

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