Horizon Acquires 20,000oz Gordons Dam Resource for A$2.81m Near Black Swan
Horizon Minerals has executed a binding agreement to acquire the Gordons Dam and adjacent gold projects near its Black Swan processing plant, adding an inferred resource of 20,000 ounces and promising exploration upside.
- Binding Tenement Sale Agreement with Yandal Resources for Gordons Dam and nearby projects
- Acquisition includes 34 granted tenements covering approximately 77 km² near Black Swan plant
- Gordons Dam hosts an inferred mineral resource of 365,000 tonnes at 1.7 g/t Au for 20,000 ounces
- Consideration of A$2.81 million split between cash and discounted Horizon shares
- Strategic fit supports Horizon’s five-year life of mine plan and standalone gold production ambitions
Strategic Acquisition Near Black Swan
Horizon Minerals Limited (ASX – HRZ) has taken a significant step toward consolidating its regional gold assets with the binding acquisition of the Gordons Dam and surrounding gold projects from Yandal Resources Limited (ASX – YRL). The deal, valued at A$2.81 million, brings 34 granted mining, prospecting, and exploration tenements covering roughly 77 square kilometres into Horizon’s portfolio, all situated in close proximity to its 100% owned Black Swan processing facility in Western Australia’s prolific goldfields.
This acquisition is more than a simple land grab; it strategically aligns with Horizon’s vision to refurbish and repurpose the Black Swan plant into a standalone gold processing hub with a nominal throughput of 1.5 million tonnes per annum. The company is currently advancing a Pre-Feasibility Study (PFS) aimed at developing a five-year life of mine plan, and the Gordons Dam project is expected to play a central role in feeding this operation.
Resource and Exploration Potential
At the heart of the acquisition is the Gordons Dam deposit, which hosts an inferred mineral resource estimate (MRE) of 365,000 tonnes grading 1.7 grams per tonne gold, equating to approximately 20,000 ounces of gold. This resource is open at depth and along strike, providing a compelling exploration upside. The deposit’s mineralisation is hosted within an Archean greenstone belt, characterized by complex geology including mafic and felsic volcanic rocks and significant structural controls such as the Gordon Sirdar Shear Zone.
Horizon has identified multiple drilling targets within the acquired projects, including advanced prospects like Star of Gordon and Malone. The company’s geological team has conducted a thorough due diligence review, confirming the robustness of the resource estimate and the quality of historical and recent drilling data. Importantly, the mineralisation extends from near surface to depths of up to 120 metres, offering flexibility in potential mining methods.
Deal Structure and Funding
The acquisition consideration totals A$2.81 million, structured as a refundable cash deposit of A$0.2 million already paid, followed by A$1.0 million in cash and A$1.61 million in fully paid ordinary Horizon shares upon completion. The shares will be issued at a 10% discount to the 15-day volume weighted average price prior to the agreement’s execution, with Horizon retaining the option to pay this portion in cash instead. The transaction is expected to settle in the September quarter of 2025, subject to regulatory approvals and ministerial consents under the Mining Act.
Funding will be sourced from Horizon’s existing cash reserves and placement capacity, reflecting the company’s prudent capital management. The absence of escrow restrictions on the issued shares provides flexibility for Horizon and its shareholders.
Looking Ahead
Managing Director and CEO Grant Haywood emphasized the strategic value of the acquisition, highlighting the potential to integrate these assets into Horizon’s broader landholding in the Western Australian goldfields. The company plans to continue detailed reviews of historical data and incorporate the new projects into its exploration and development pipeline. Metallurgical testing and further drilling are anticipated to refine the resource and unlock additional value.
While the Gordons Dam resource is currently classified as inferred, indicating moderate geological confidence, the proximity to existing infrastructure and the presence of multiple exploration targets bode well for Horizon’s growth ambitions. Environmental and regulatory considerations remain ongoing, but no significant impediments have been identified at this stage.
Bottom Line?
Horizon Minerals’ acquisition of the Gordons Dam projects marks a pivotal step toward unlocking the full potential of its Black Swan processing hub, setting the stage for a transformative five-year mine plan.
Questions in the middle?
- How will metallurgical test results influence the processing strategy at Black Swan?
- What is the timeline and likelihood for regulatory approvals and ministerial consents?
- To what extent can exploration drilling expand the current inferred resource at Gordons Dam?