Horizon Minerals is set to acquire the Kalpini gold project in Western Australia from private consortium NBT Metals for $2.75 million.
The Kalpini project is 50 kilometres north east of Horizon’s Boorara gold project, with the company using the acquisition to grow Boorara’s production and mine life.
The joint ore reserves committee 2004 mineral resource, which is under review by Horizon, is 4.6 million tonnes grading at 1.7 grams per tonne of gold for 255,600 ounces.
Kalpini comprises the Gambia, Camelia and Atlas deposits and spans 585 hectares.
Horizon managing director Jon Price said Kalpini had been worked on previously, which would assist in the advancement of the consolidated feasibility study.
“Horizon’s core focus remains firmly set on developing a stand-alone gold production business in the Kalgoorlie and Coolgardie regions and this acquisition aligns with this focus and our strategy of further regional consolidation of advanced development assets in close proximity of the proposed Boorara Mill,” he said.
“The Kalpini gold project has had considerable work completed in the past, including resource modelling, mining, processing and environmental studies which enables rapid advancement of the deposits for inclusion into the consolidated feasibility study.
“We look forward to completing the technical review of the geological models, further drilling and updating the resource. Future drilling will also test extensions along strike and at depth where we see significant opportunity to grow the deposits and reassess their development in the current high gold price environment.”
The binding sale agreement is subject to standard conditions with a settlement expected in the current quarter.
Boorara’s consolidated feasibility study is due to be completed in June next year.