Horizon Gold advances Gum Creek toward development after robust June quarter DFS

Horizon Gold advances Gum Creek toward development after robust June quarter DFS

Proactive

Thu, July 30, 2026 at 5:03 AM GMT+3 5 min read

Horizon Gold Ltd (ASX:HRN, OTC:HZGLF, FRA:HO0) strengthened the development case for its 100%-owned Gum Creek Gold Project during the June quarter, completing a definitive feasibility study (DFS) that outlined a potential 10-year operation producing 880,000 ounces of gold.

The study confirmed a pathway to first production in the second half of 2028, with average output targeted at 98,000 ounces per annum during the first five years and 88,000 ounces annually across the full mine life.

Based on a gold price of A$5,500 per ounce, Gum Creek is forecast to generate pre-tax free cash flow of A$1.85 billion, a pre-tax net present value of A$1.31 billion and an internal rate of return of 53.1%.

Pre-production capital has been estimated at A$350 million, including mine development, construction of a 2.4-million-tonne-per-annum processing plant and supporting infrastructure.

The project is expected to achieve payback within 23 months of first production and operate at an all-in sustaining cost of A$2,995 per ounce.

DFS establishes development pathway

The open-pit DFS is underpinned by a production target of 25.1 million tonnes grading 1.19 g/t gold for 962,000 contained ounces, of which an estimated 880,000 ounces would be recovered.

A maiden probable open-pit ore reserve of 18.2 million tonnes at 1.24 g/t gold for 728,000 ounces supports the development plan.

The reserve is drawn from seven priority deposits, with Swan and Swift contributing the largest portion at 392,000 ounces, followed by Howards with 186,000 ounces and Kingfisher with 71,000 ounces.

Horizon said the project had been demonstrated to be technically, economically and environmentally viable, with production forecast to peak at 114,000 ounces in the second year of operations.

The company is targeting completion of the project approvals process in time for a final investment decision in the second quarter of 2027.

Subject to approvals and financing, construction is expected to begin in the fourth quarter of 2027 and take around 12 months.

Horizon will now progress detailed engineering, upgrade the existing accommodation camp, begin early contractor involvement and advance tenders for major equipment and services.

The company is also working with its financial adviser to assess project funding options.

Exploration drilling delivers further upside

Alongside the DFS, Horizon continued an extensive exploration and resource development campaign across Gum Creek, with strong results returned from the Omega, Kingfisher, Swift, Eagle and Goldfinch prospects.

At Omega, four diamond holes extended high-grade mineralisation more than 120 metres down plunge beneath the historic workings.

Results included 14 metres at 2.87 g/t gold from 337 metres, including 8 metres at 4.60 g/t, as well as 17 metres at 1.40 g/t from 315 metres, including 5 metres at 3.81 g/t.

Structural analysis is underway to refine the geological model ahead of further deep infill and extensional drilling.

At Kingfisher, the initial seven-hole diamond program confirmed the company's geological interpretation and identified an additional mineralised shoot about 200 metres down plunge to the north.

Quarterly results included 5 metres at 2.42 g/t gold from 338 metres, including 3 metres at 3.56 g/t, and 4 metres at 2.37 g/t from 407 metres, including 1 metre at 8.09 g/t.

Two diamond rigs remain active at Kingfisher, testing the newly identified northern shoot and seeking to upgrade inferred resources within the upper and central high-grade zones.

Shallow drilling supports resource growth

Reverse circulation drilling at Swift returned several high-grade intercepts outside the current resource model.

The strongest result was 6 metres at 5.13 g/t gold from 95 metres, including 2 metres at 14.7 g/t, while another hole returned 5 metres at 4.28 g/t from 146 metres, including 2 metres at 10.28 g/t.

Diamond extensions to three pre-collared holes are planned to test the main Swift lode at depth and provide further structural information ahead of a mineral resource update later in 2026.

At Eagle, drilling extended known mineralisation about 300 metres south of the existing resource model.

Results included 3 metres at 6.62 g/t gold from 43 metres, including 1 metre at 16.35 g/t, and 13 metres at 1.50 g/t from 34 metres, including 6 metres at 2.77 g/t.

Horizon is also preparing a maiden mineral resource estimate for Goldfinch after drilling returned 4 metres at 6.19 g/t gold from 75 metres to the end of the hole and 3 metres at 5.11 g/t from 73 metres.

Resource estimation work is also advancing at Shrike South, where drilling tested shallow extensions beneath and along strike from historical open-pit workings.

Funded to advance Gum Creek

Horizon completed the entitlement offer component of a A$30 million capital raising during the quarter, securing about A$10.18 million before costs.

The raising followed a A$20 million placement completed in the previous quarter, with proceeds allocated to the Gum Creek feasibility program, an 80,000-metre exploration campaign and general working capital.

Horizon finished the June quarter with A$24.05 million in cash after spending A$4.63 million on exploration and evaluation activities.