Horseshoe Metals Raises $851K, Gains DSO Mining Green Light at Horseshoe Lights

• Mining approval granted for Direct Shipping Ore (DSO) at Horseshoe Lights
• Recommissioning of camp and infrastructure underway to support DSO start-up
• Melody Gold exercises option to process gold surface materials on site
• Strategic placement raises $851,000 post-quarter to fund operations
• Exploration and drilling campaigns planned to expand resource base

Mining Approval Unlocks Early Cash Flow Potential

Horseshoe Metals Limited (ASX, HOR) has taken a significant step forward in advancing its Horseshoe Lights Copper-Gold Project in Western Australia with the recent receipt of mining approval for Direct Shipping Ore (DSO) operations. This approval from the Western Australian Department of Energy, Mines, Industry Regulation and Safety allows the company to commence mining activities on existing high-grade copper stockpiles, unlocking an early cash flow opportunity ahead of larger-scale development.

The DSO material, located in several stockpiles and dumps around the site, is readily accessible and can be efficiently extracted using loaders and excavators. Horseshoe Metals anticipates strong demand for this product, buoyed by a strengthening copper price environment.

Infrastructure Recommissioning Supports Operational Restart

To facilitate the DSO start-up and future mining activities, Horseshoe Metals has recommissioned the Horseshoe Lights camp and associated infrastructure. The site boasts a 20-person camp with water and power supply, workshop facilities, and even an airstrip, all of which are being brought back into operational condition. This infrastructure will support not only the immediate DSO operations but also planned exploration and processing activities.

Strategic Partnership with Melody Gold

Adding to the project's momentum, Melody Gold Pty Ltd has exercised its option to process gold surface materials at Horseshoe Lights. Under this agreement, Melody Gold will retreat up to 500,000 tonnes per annum of gold-bearing surface stockpiles using gravity recovery methods to produce a gold-copper-silver concentrate. Horseshoe Metals retains full rights to copper and mixed copper-gold surface materials, as well as all subsurface mineral rights, ensuring ongoing value capture from the site.

Funding Boost to Accelerate Development

Post-quarter, Horseshoe Metals successfully raised $851,000 through a strategic placement to sophisticated investors. This capital injection, alongside drill-to-equity and debt-to-equity conversions with key contractors, provides the necessary funding to commence DSO operations and sales imminently. The company also maintains a $4 million secured convertible loan facility, underpinning its financial flexibility as it advances development.

Exploration and Growth Prospects

Looking ahead, Horseshoe Metals plans to ramp up exploration and drilling campaigns to test new areas of interest within and around the Horseshoe Lights project. Activities include reverse circulation and auger drilling of stockpiles and dumps, geochemical sampling, and detailed reviews of historic data to refine the mineralisation model. These efforts aim to expand the resource base and underpin a future scoping study update.

Meanwhile, the company’s other projects, Kumarina in Western Australia and Glenloth in South Australia, remain in review phases with no active fieldwork during the quarter.

Bottom Line?

With mining approval secured and funding in place, Horseshoe Metals is poised to translate its resource potential into tangible production and revenue in the near term.

Questions in the middle?

• What are the expected production volumes and timelines for the DSO operations at Horseshoe Lights?
• How will the partnership with Melody Gold impact Horseshoe Metals’ revenue and processing strategy?
• What are the prospects and timelines for expanding the resource base through upcoming exploration campaigns?