Horizon Gold details A$1.31B Gum Creek NPV - ICYMI

Horizon Gold Ltd (ASX:HRN, OTC:HZGLF, FRA:HO0) earlier this week confirmed a financially robust development pathway for its 100%-owned Gum Creek Gold Project in Western Australia, following the completion of a definitive feasibility study targeting first production in the second half of 2028.

The open-pit study outlined average production of 98,000 ounces of gold per annum during the first five years and total recovered production of 880,000 ounces across an initial 10-year mine life.

Using a gold price of A$5,500 per ounce, the study forecast A$1.85 billion in pre-tax free cash flow, a pre-tax net present value of A$1.31 billion and an internal rate of return of 53.1%.

Managing director Scott Williamson said the company had deliberately pursued a straightforward development plan based on open-pit mining and conventional free-milling processing.

“We’ve tried to keep this one as simple as possible,” Williamson said.

Pre-production capital was estimated at A$350 million, including mine development, a new processing plant, infrastructure and contingency.

The project also carried an estimated all-in sustaining cost of A$2,995 per ounce and a payback period of 23 months from first production.

Williamson said the company expected project funding to comprise a combination of debt and equity.

Horizon Gold planned to engage with banks and independent technical experts over the following six months, with the simplicity of the mining and processing plan expected to support those.