The Boorara gold project aims to produce 1,400oz of gold from processing 54,380 tonnes (t) of ore. Credit: Roman Bodnarchuk/Shutterstock.

Horizon Minerals has begun ore transportation from the Boorara gold project near Kalgoorlie-Boulder, Western Australia, to Norton Gold Fields’ Paddington mill for processing.

First gold production from the mine is expected this month.

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The mining operations, which began in August 2024, are set to occur over 14 months with processing taking place for 19 months at the Paddington plant, under an ore sale agreement (OSA) with Norton Gold Fields.

The OSA is expected to generate $30m in free cash flow, based on a gold price of A$3,600/oz ($2,333/oz).

Horizon will receive 50% of the gross revenue less estimated processing costs within five days of delivering ore to the Paddington mill. A final revenue calculation will be made following the complete processing of the stockpile.

The Boorara gold project is expected to yield approximately 1,400oz of gold from the initial processing of 54,380t of ore. The ore has an anticipated grade of 0.8 grams per tonne (g/t) of gold (Au) and a 94% recovery rate.

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The first stockpile was built from ore mined from Pit 2 in the North and Pit 4 in the south. The stockpile was assayed and metallurgical test work has been completed, with the initial grades being in line with expectations.

The site team has been working closely with Norton Gold Fields to ensure a smooth grade determination process under the ore purchase agreement.

Horizon Minerals managing director and CEO Grant Haywood said: “It is very pleasing that we are transporting our first ore delivery from Boorara, with first revenue due shortly. This milestone has been achieved despite the tight labour market during our ramp up phase and some inclement weather.

“We are now fully manned up and the team has been making good progress. We look forward to ongoing gold production from Boorara. In addition to Boorara, our Phillips Find project is progressing well and is on track for first ore delivery to the Greenfields mill in February 2025.”

Horizon Minerals approved the development of Boorara in late July 2024, aiming to mine a series of four open pits containing 1.24 million tonnes of ore grading at 1.24g/t Au for 49,500oz of gold.

Hampton Transport Services has been awarded the mining services and surface ore haulage contracts.