7 Previous Owners of Gum Creek, but Horizon Gold Has a New Plan: Scott Williamson, MD (ASX: HRN)
LEVRDShow Notes
Gum Creek has produced over a million ounces of gold and has sat on care and maintenance since 2005. Horizon Gold (ASX: HRN) has now delivered a Definitive Feasibility Study with a A$894 million post-tax NPV. Managing Director and CEO Scott Williamson joins LEVRD to talk through what failed on the previous iterations, the 728,000oz maiden Ore Reserve, new drilling at Kingfisher, Howards and Heron South, the million-plus ounces sitting outside the mine plan, whether to build a plant or toll treat, and how Horizon funds a A$350 million build with Zeta holding 64.69%.
WHAT WE COVERED
- What Horizon can see at Gum Creek that Arimco, Abelle, Harmony and Legend couldn't, and whether there's upside to a 100kozpa mine from day one
- The DFS: 880,000 recovered ounces over ten years through a 2.5Mtpa CIL plant, a A$894M post-tax NPV and a A$350M build
- The maiden Ore Reserve: 728,000oz from a 2.30Moz resource and conversion from ongoing drilling
- Kingfisher: 23m @ 5.26g/t incl. 15m @ 7.65g/t, how much bigger it gets than 71,000 reserve ounces, an underground restart (113,500oz @ 3.38g/t, 15m @ 28.5g/t from 346m), and whether the water plan locks it into years six to eight
- Howards: gold in every hole over an 800m strike extension south, what that does to a 186,000oz reserve, and how much focus sub-1g/t, harder ore deserves
- Heron South's 6m @ 12.67g/t (incl. 1m @ 58.7g/t) - free-milling or refractory? - and the undrilled southern half at Melbourne Bitter after 21m @ 2.14g/t
- Over a million ounces outside the mine plan: 416,000oz of free-milling underground at 3.6g/t across Swan, Swift and Kingfisher, plus 698,000oz of sulphide including Wilsons (400,000oz @ 4.31g/t) - what gets in before FID, and what a refractory circuit adds
- Cutting back old open pits, seven pit lakes holding ~7,600ML as the water supply, and why the dewatering sequence matters
- Build or toll treat: the approved Mining Proposal, which pits go first, how much of the A$350M gets deferred, expanding to 3.0Mtpa, ~A$2,900/oz costs, and Brightstar's planned 4-5Mtpa Sandstone plant 90km south
- Funding A$350M with A$24M cash, no debt and a ~A$199M market cap
- The register: Zeta at 64.69%, L1 at 6.59%, a sub-30% free float, and whether Gum Creek gets built or taken out
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