Poseidon Merger and Black Swan Plant Refurbishment Present Execution Risks for Horizon Minerals

Steady Gold Production Milestones

Horizon Minerals Limited (ASX: HRZ) has delivered a solid quarter ending 31 March 2025, with first gold pours from its Boorara and Phillips Find projects underpinned by ore sale and toll milling agreements. The Boorara Gold Project, located just east of Kalgoorlie, achieved its inaugural gold pour through ore processed at the Paddington Mill, generating approximately A$4.95 million in revenue from 50,604 dry tonnes of ore at 0.791 g/t gold.

Meanwhile, the Phillips Find project near Coolgardie also reached a production milestone with its first gold pour via the Greenfields Mill under a toll milling agreement. The initial ore parcel of 37,624 dry tonnes at 1.46 g/t gold yielded around A$7.9 million in revenue, reflecting strong grades and favourable gold prices.

Strategic Merger Enhances Infrastructure and Growth

During the quarter, Horizon completed its merger with Poseidon Nickel Limited, a move that significantly expands its asset base and operational capabilities. The acquisition brings the Black Swan processing plant into Horizon’s portfolio, a key infrastructure asset that will support future gold production and processing efficiencies in the Kalgoorlie-Coolgardie region.

To leverage this asset, Horizon has engaged GR Engineering Services to commence engineering studies for refurbishing and repurposing the Black Swan plant. Concurrently, mining studies are underway to develop a Life of Mine plan that will feed ore into the facility, positioning Horizon for sustainable mid-term production growth.

Operational Progress and Exploration Outlook

Both Boorara and Phillips Find projects continue to operate at steady state production, building ore stockpiles to ensure continuous processing and cashflow. Notably, the Phillips Find JV with BML Ventures is progressing under a low-risk financial structure, with BML funding project costs and Horizon sharing net cashflow, allowing Horizon to focus resources on Boorara and broader growth initiatives.

Exploration activity was modest during the quarter as the company prioritised production ramp-up. However, planning and resourcing commenced for a resource extension drilling program at the Burbanks gold project, signalling Horizon’s commitment to expanding its exploration pipeline and long-term resource base.

Financial Position and Leadership Strengthening

Horizon’s financial footing remains robust with A$6.0 million in cash and approximately A$3.1 million in listed investments. The company successfully raised A$9.625 million through a private placement led by Golden Crane Holdings Limited, aimed at supporting ongoing project development and potential debt refinancing.

To support its operational ambitions, Horizon appointed Ms Adrianna Skok-Muir as Group Mining Engineer to oversee the Life of Mine feasibility study and Mr Dirk Richards as Project Manager to lead the Black Swan plant refurbishment. These strategic hires underscore Horizon’s focus on building a capable leadership team to drive its standalone gold producer aspirations.

ESG and Governance Initiatives

In parallel with operational advances, Horizon continues to enhance its Environmental, Social, and Governance (ESG) framework. The company is reviewing internal policies and governance principles to meet or exceed its corporate license to operate, with prior materiality surveys and sustainability reporting workshops laying the groundwork for ongoing improvements.