How Horizon Gold’s Latest Drilling Boosts Gum Creek Gold Resource by 8%
Horizon Gold Limited has announced an updated Mineral Resource Estimate for its Gum Creek Gold Project, revealing an 8% increase in gold ounces and a notable 26% rise in average grade. This upgrade underscores the project's growing potential in Western Australia's Murchison region.
- Total gold resource increased to 2.30 million ounces
- Average gold grade improved by 26% to 1.89 g/t Au
- Indicated Resource now 71% of total, up 21% in ounces
- 28,400m of recent drilling underpinning resource growth
- Resource remains open for further expansion with ongoing drilling planned
Resource Upgrade Highlights
Horizon Gold Limited (ASX, HRN) has delivered a significant boost to its Gum Creek Gold Project in Western Australia, updating its Mineral Resource Estimate (MRE) to 2.30 million ounces of gold at an average grade of 1.89 grams per tonne. This represents an 8% increase in contained gold ounces and a remarkable 26% improvement in grade compared to the previous estimate from May 2023.
The upgrade is underpinned by an extensive drilling campaign totaling 28,400 metres of reverse circulation and diamond drilling completed over 18 priority targets during 2024 and 2025. These efforts have not only increased the total resource but also enhanced the confidence level, with the Indicated Resource category rising by 21% to 1.63 million ounces, now comprising 71% of the total resource base.
Geological and Technical Advances
The updated resource incorporates refined geological modelling using Ordinary Kriging interpolation constrained by mineralisation wireframes, a methodological shift from previous Multiple Indicator Kriging approaches. This change has contributed to the higher average grade reported, reflecting a more precise understanding of the deposit's continuity and grade distribution.
All resource areas are situated on granted mining leases, with mineralisation remaining open along strike and at depth, suggesting further upside potential. Key deposits such as Eagle, Kingfisher, Swan/Swift, and Wilsons have seen notable resource expansions, supported by recent drilling results that include high-grade intercepts like 15 metres at 28.5 g/t Au at Kingfisher.
Metallurgical and Mining Considerations
Metallurgical testwork confirms that the majority of the resource is free milling, with high gold recoveries demonstrated across oxide, transitional, and fresh mineralisation types. This bodes well for the economic extraction potential of the project, which is being evaluated through ongoing feasibility studies focused on a stand-alone processing operation.
Horizon Gold is planning further drilling to expand the resource, particularly targeting shallow oxide zones and deeper high-grade underground targets. The company is also exploring untested open pit targets and regional prospects within the underexplored Gum Creek greenstone belt, aiming to build a robust pipeline of future resources.
Strategic Outlook
Managing Director Leigh Ryan expressed confidence in the project's trajectory, highlighting the impact of recent gold price increases on cut-off grades and resource economics. The enhanced resource base and improved grade profile position Gum Creek as a strategically significant asset for Horizon Gold, with the potential to underpin a long-life gold operation in the Murchison region.
Bottom Line?
With a richer and larger resource, Horizon Gold’s Gum Creek project is poised for a pivotal development phase, but investors will watch closely for feasibility outcomes and further drilling results.
Questions in the middle?
- How will the updated resource impact Horizon Gold’s mine development timeline and capital requirements?
- What are the implications of the higher grade on project economics and potential processing methods?
- To what extent can further drilling expand the resource beyond current estimates, especially at depth?
