Horizon Minerals(HM) has unveiled the signing of a binding toll milling agreement(TMA) with FMR Investments, targeting gold treatment and processing, with a potential of over 200,000 tonnes from its Cannon subway project in Western Australia(WA).
Potential gold processing
Processing of the ore will start in the fourth quarter of this year at FMR’s Greenfields Mill. This agreement stipulates that Horizon will be responsible for the supervision of the contracted mining and transportation of the ore from Cannon to Greenfields Mill, which has an annual processing capacity of one million tons (mt) and is located 67 km from the project.
Competitive processing fees have also been negotiated and Horizon will be required to pay upfront processing costs before the value of the refined gold is transferred from FMR’s metals account to Horizon at Perth Mint. In addition, the milling of the agreed 200,000 tons of ore is expected to be spread over a period of 8 months.
On the other hand, the existence of an ore reserve at Cannon has been verified and has considered the projected economics in the TMA. The site has the required environmental permits and pre-production activities are underway, including dewatering of the open pit to facilitate the subway mining .
Strengthening Horizon Minerals
Horizon Minerals may process ore from other deposits, including those from its current resources or potential acquisitions through the proposed merger with Greenstone Resources, upon adequate notice to FMR.
It has also engaged AMC Consultants to review Cannon’s ore reserve and is expected to update financial results for the current quarter. On the other hand, HM is finalizing the bidding processes to select subway mining and haulage contractors for the Cannon project.
The company will also focus its efforts on completing the merger with Greenstone Resources, with the intention of strengthening its production profile in the long term, through high-quality projects available for development. projects available for development.
The CEO of Horizon Grant Haywood said, “We are delighted to have formalized our 200,000 tonne commitment to FMR in a toll milling agreement and look forward to working closely with them as they begin ore deliveries later this calendar year. This agreement is in addition to our 1.4 million tonne ore sales contract with Paddington announced a week ago. Together, they will enable us to generate cash flow from two fronts in this favorable gold price environment before the end of 2024”.
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Source: Horizon Minerals
Photo: Shutterstock
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