Horizon Minerals has secured an equal stake in the Penny’s Find gold mine, paying $1.5 million in cash to Orminex.
The stake will also see Horizon fund the first $1 million in pre-developments before the joint venture becomes equally funded.
Horizon, a subsidiary of Black Mountain Gold, signed the joint venture last September at the same time as a toll milling treatment agreement at Orminex’s Lakewood mill, to commence July 2022.
Horizon managing director Jon Price said the development schedule, including drilling results and an updated resource, looked increasingly promising.
“Penny’s Find is a quality high-grade gold project with considerable work completed enabling an accelerated pathway to production, with approvals and toll milling agreement in place for the first phase of development,” Price said.
“We look forward to working with the Orminex team and releasing the drilling results, updated resource model and mine optimisation and design work in coming months enabling a development decision in the September quarter of 2021.”
Orminex non-executive director Dean Hely echoed Price’s comments in that the timeline to production is racing towards them.
“Execution of the joint venture agreement is a great step forward in fast-tracking the necessary technical works to enable commencement of development at Penny’s Find, with Orminex committed to utilising the $1.5 million received for future funding of this high grade, prospective underground gold mine,” Hely said.
“Synergies in operational strategy are already evident with our joint venture partner and we very much look forward to Orminex returning to conducting underground mining activities in 2021.”
Penny’s Find was acquired by Orminex in March 2019 from Empire Resources for $600,000, plus smelter royalties.
The current mine has 56,000 ounces of high-grade gold, at a latest mineral resource of 248,000 tonnes.