Gum Creek Feasibility Study Advances Amid Pending High-Grade Assays and Resource Upside

Ongoing Drilling Advances Feasibility Study

Horizon Gold Limited (ASX: HRN) is making steady progress at its 100%-owned Gum Creek Gold Project in Western Australia's Mid-West region. The company reports that its diamond drilling program, designed to provide critical geotechnical information for pit design, is on track to complete by the end of January 2025. This work is integral to the ongoing feasibility study (Study) aimed at advancing Gum Creek towards production.

The diamond drilling has targeted multiple prospects, including Wedge, Swift, Eagle, Kingfisher, and Hawk, among others. Notably, drilling immediately down plunge of a previous high-grade intercept at the Wedge Prospect, 52 meters at 5.9 grams per tonne (g/t) gold, has been completed, with assays pending. These results will be pivotal in refining the geological model and optimizing mine planning.

Major RC Drilling Campaign to Upgrade Resource Confidence

Following diamond drilling, Horizon Gold plans to commence a substantial reverse circulation (RC) drilling program of approximately 10,000 meters starting early February 2025. This campaign will focus on infill and extension drilling across all deposits included in the Study, aiming to upgrade the resource confidence of the Project’s 2.14 million ounce gold resource. High priority targets include the down plunge extension of a previous intercept at the Hawk Prospect, which returned 24 meters at 3.7 g/t gold.

The RC drilling will cover 15 existing resource areas and also test Eagles Peak South, where there is potential to define a maiden resource. The program is expected to be completed within six to eight weeks, providing a timely data set to feed into the feasibility study and support potential mine life extensions.

Comprehensive Feasibility Study Progress

Beyond drilling, Horizon Gold continues to advance other critical components of the Gum Creek feasibility study. These include comminution test work, metallurgical sampling, environmental surveys, and water management strategies. The company remains confident that Gum Creek can evolve into a robust, standalone mining operation with a strong economic profile.

There is significant upside potential to extend the current 10-year mine life outlined in the Gum Creek Scoping Study. Resource expansion drilling and underground mining options at deposits such as Swan/Swift, Kingfisher, Omega, and Wilsons are yet to be fully evaluated. Additionally, drilling at 12 open pittable resource areas not included in the Scoping Study could increase resource size and economic viability, enhancing the Project’s financial outlook.

Corporate and Financial Update

In November 2024, Horizon Gold sold its entire 60.7 million shareholding in Alto Metals Limited for $5.16 million, a significant uplift from the $3.17 million acquisition cost in July 2023. Proceeds from this sale were used to repay a $1.2 million short-term loan facility from major shareholder Zeta Resources Limited, strengthening the company’s balance sheet.

As of 31 December 2024, Horizon Gold held $3.635 million in cash, providing a solid financial foundation to fund ongoing exploration and development activities. The company reported $637,000 in exploration and evaluation expenditure during the quarter, primarily related to drilling and feasibility study work.

Looking Ahead

With diamond drilling concluding and a major RC program imminent, Horizon Gold is poised to deliver critical data that could materially enhance the Gum Creek resource base and project economics. The company’s methodical approach to advancing the feasibility study, combined with a strengthened financial position, sets the stage for potential value creation in the coming months.