Horizon Gold Limited has reported a significant update to its Gum Creek Gold Project, boosting its mineral resource estimate by 8% and advancing its feasibility study on track for mid-2026 completion.
- Updated Mineral Resource Estimate of 2.30 million ounces, an 8% increase
- Gold grade improved by 26% to 1.89 g/t
- Indicated resource now 71% of total, up 21% in ounces
- Strong shallow gold intercepts at Goldfinch and Robin prospects
- Feasibility study progressing on schedule for H1 2026
Resource Upgrade Signals Growing Potential
Horizon Gold Limited (ASX – HRN) has delivered a compelling update on its 100%-owned Gum Creek Gold Project in Western Australia's Mid-West region. The company announced an updated Mineral Resource Estimate (MRE) of 37.97 million tonnes at 1.89 grams per tonne gold, equating to 2.30 million ounces. This marks an 8% increase in total gold ounces and a notable 26% uplift in grade compared to the previous May 2023 estimate.
The upgrade is underpinned by a 21% rise in the indicated resource category, now representing 1.63 million ounces or 71% of the total resource. This shift towards a higher confidence resource base bodes well for future development planning and investor confidence.
Encouraging Drilling Results at Key Prospects
Recent reverse circulation drilling at the Goldfinch and Robin prospects has returned significant shallow gold intercepts, reinforcing the project's exploration upside. Highlights include intercepts such as 11 metres at 3.18 g/t gold and 7 metres at 3.63 g/t gold at Goldfinch, and 7 metres at 2.46 g/t gold at Robin. These results confirm the continuity of mineralisation near surface, which is critical for potential open-pit mining operations.
Meanwhile, deep diamond drilling at the Kingfisher prospect has been completed, targeting extensions of previously reported high-grade zones, including 15 metres at 28.5 g/t gold. Drilling at the Omega prospect has also commenced, with assays pending. These deeper targets could add further high-grade ounces to the resource base.
Feasibility Study Progressing on Track
Horizon Gold is advancing a comprehensive feasibility study focused on the free milling portion of the Gum Creek resource, which accounts for 70% of the total ounces. The study encompasses metallurgical testing, geotechnical assessments, environmental and heritage surveys, and infrastructure design. All key components are progressing well, with completion expected in the first half of 2026.
This study aims to validate the economic viability of a standalone gold operation at Gum Creek, potentially unlocking significant value for shareholders.
Financial Position and Exploration Outlook
During the quarter, Horizon Gold invested AUD 3.586 million in exploration and evaluation, primarily directed at resource drilling and feasibility activities. The company ended the period with a cash balance of AUD 4.112 million, providing a solid runway to continue its development and exploration programs.
Additionally, Horizon has leveraged AI-assisted mineral discovery technology to prioritise exploration targets, signalling a modern approach to resource growth. Further drilling and target validation are planned for 2026, with the potential to expand the resource base beyond current estimates.
Bottom Line?
With resource upgrades and promising drilling results, Horizon Gold is poised for a pivotal year as it nears feasibility study completion and deeper exploration milestones.
Questions in the middle?
- What will the final assay results from Kingfisher and Omega diamond drilling reveal about high-grade extensions?
- How will the feasibility study outcomes influence Horizon Gold’s development timeline and capital requirements?
- Can AI-assisted exploration accelerate discovery and resource expansion at Gum Creek beyond current projections?