Horizon Minerals has acquired the Bulong South, Glandore and Cowarna gold projects in the Western Australian Goldfields from Aurenne Group Holdings for $5 million.
The Bulong South project contains the Cannon gold mine which has an ore reserve of 117,00 tonnes at 5.31 grams per tonne of gold for 20 ounces.
Horizon stated that Cannon will become a core project to be evaluated as part of its consolidated feasibility study.
Company managing director Jon Price said it will also complement the company’s Boorara deposit.
“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,” he said.
Cannon contains historic tenements that have been worked on since the early 1900s.
Southern Gold discovered the Cannon deposit in 2008 with pit mining beginning in 2015 under an agreement with Metals X (now Westgold Resources).
In 2018, Northern Star bought a stake in Cannon after Westgold sold its South Kalgoorlie assets.
Southern Gold consolidated the project area from Northern Star in December 2018.
The company sold the project, along with Glandore and Cowarna, to Aurenne Group Holdings in 2019.
“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,” Price said.
The Glandore project contains multiple open pit and underground exploration targets, while Cowarna is located east of Silver Lake Resources’ Mt Monger gold operation.
The three projects are made up of 24 mining, prospecting, exploration and miscellaneous licenses.
“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,” Price said.
“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.”