Horizon Gold Unveils High-Grade Drilling Hits and $12M Capital Boost at Gum Creek

Drilling Success Strengthens Resource Confidence

Horizon Gold Limited (ASX – HRN) has reported significant progress at its 100%-owned Gum Creek Gold Project in Western Australia's Mid-West region. The company completed a 13,183-metre reverse circulation (RC) drilling program aimed at upgrading the confidence in its 2.14 million ounce gold resource and testing extensions of high-priority targets. The program included 37 RC holes totaling 2,918 metres during the June quarter, with assays confirming numerous high-grade gold intercepts across multiple prospects.

Notable results came from the Swan/Swift prospects, where intercepts such as 22 metres at 3.18 grams per tonne (g/t) gold from 2 metres depth, including 5 metres at 9.71 g/t, highlight the shallow and high-grade nature of mineralisation. Similarly, the Howards prospect delivered broad zones of mineralisation, including 28 metres at 3.88 g/t from 74 metres, reinforcing the potential for open pit mining. Other prospects like Eagle, Reliance, Hawk, and Shiraz also returned significant intercepts, confirming and extending known mineralisation.

Feasibility Study on Track Amid Comprehensive Technical Work

Work on the Gum Creek Feasibility Study remains on schedule for completion early in 2026. The company is finalising geotechnical studies and metallurgical test work, while environmental surveying, mine design, heritage evaluations, and water management testing are progressing well. These efforts aim to underpin a robust mine plan and optimise pit designs, supported by downhole televiewer surveys that provide critical structural and geotechnical data.

Horizon is also advancing resource modelling with wireframing underway for multiple prospects to prepare updated mineral resource estimates (MREs). This will feed into the feasibility study and support potential mine life extensions through further resource expansion drilling, including testing high-grade underground targets such as Kingfisher and Omega.

Capital Raising to Fund Growth and Debt Repayment

Financially, Horizon Gold secured a $2 million short-term loan facility from major shareholder Zeta Resources Limited in April 2025, with $500,000 drawn at quarter end. Post-quarter, the company announced a $12 million capital raising comprising a $5 million placement to institutional and high net worth investors and a 1-for-10 non-renounceable entitlement offer to existing shareholders, both priced at $0.48 per share. Directors and Zeta Resources intend to take up their full entitlement, representing approximately 80% of the offer.

Funds raised will support completion of the feasibility study, further exploration drilling, repayment of debt, and general working capital. At quarter end, Horizon held $503,000 in cash with available financing facilities of $1.5 million, providing a runway of approximately 1.1 quarters without additional funding. The capital raise is therefore critical to sustaining operations and advancing the project.

Outlook and Strategic Implications

Horizon Gold’s Gum Creek project, with a historical production exceeding 1 million ounces and a current resource base of over 2 million ounces, is positioned for a potential standalone mining operation. The recent drilling results and ongoing technical work bolster confidence in the project’s economic viability, especially amid strong gold prices. The company’s strategy to update resource estimates and explore underground mining options could further enhance the project’s value and longevity.

Investors will be watching closely for the feasibility study outcomes expected early next year, as well as the success of the capital raising and subsequent drilling results that could unlock additional resources and extend mine life.