Horizon Minerals (ASX: HRZ) jumped 4.17% on Wednesday after reporting high-grade extensions at the Crake and Coote gold projects, located 8km west of Kalgoorlie-Boulder, WA.
Through the 11-hole drill program, the company intersected new high-grade mineralisation beyond Crake’s previous resource envelope. Highlights from these intersections include:
12m @ 2.70g/t gold (Au) from 48m
4m @ 9.27g/t Au from 75m
Crake’s mineral resource estimate currently stands at:
1.42Mt at 1.46g/t Au for 66,500oz at a 0.8g/t Au lower cut-off grade with 95% in the indicated category.
According to Horizon, the results show continuity along strike and to the west. They also suggest that mineralisation remains open to the northwest and west, heading toward the Coote deposit.
In terms of the Coote itself, the prospect’s results included 5m @ 10.52g/t Au from 12m, with a 1m section @ 42.98g/t Au.
Labor shortages have delayed further results. Over 6,000m of drilling samples are currently sitting in laboratories, awaiting assays.
“These latest extensional drill results continue to demonstrate the growth potential of this large mineralised system within the Binduli project area,” says managing director Jon Price.
“We see the potential for significant resource growth all within close proximity to existing infrastructure in the Kalgoorlie region.”
The company has noted that Crake and Coote have similar geology to the 390,000oz Janet Ivy open pit, located about 1.5 km south.
Janet Ivy is owned by Norton Gold Fields – one of Australia’s largest domestic gold producers, with recent production of up to 200,000 ounces per year. Norton Gold Fields was delisted in 2015 after being acquired by chinese-based Zijin Mining.
Horizon plans to conduct more extensional and infill drilling this year. This will test the connection and possible convergence of the Crake and Coote deposits.
In the June quarter of 2022, the company expects to update Crake’s mineral resource estimate. Horizon also aims to provide a maiden MRE for Coote in the same period.
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