Lake Johnston Sale and Drilling Risks Shadow Horizon’s Ambitious Growth Plans

Quarterly Production and Revenue Highlights

Horizon Minerals Limited (ASX, HRZ) has reported a solid quarter ending December 2025, marked by the safe completion of open pit mining at its Boorara and Phillips Find gold projects. The company mined approximately 208,000 tonnes of ore at Boorara with an average grade of 1.14 grams per tonne, processing 120,000 tonnes at 1.09 g/t Au, resulting in 3,873 ounces of gold produced. Gold sales from Boorara reached 3,689 ounces at an average price of $6,322 per ounce, generating around $23.3 million in revenue.

Meanwhile, Phillips Find delivered 132,000 tonnes of ore at 1.74 g/t Au to a third-party processing plant, with gold sales and revenue to be finalised in the March 2026 quarter following joint venture partner agreement.

Black Swan Processing Hub Expansion

Significantly, Horizon has upgraded its Black Swan Processing Hub studies, increasing the planned throughput from 1.5 million tonnes per annum to 2.2 million tonnes per annum. This enhancement leverages existing plant capacity and is expected to improve operational flexibility, allowing multiple Horizon assets and potential third-party ore feeds to be processed. The company engaged GR Engineering Services to progress the Pre-Feasibility Study (PFS) and is on track to complete detailed mine scheduling for the higher throughput in the March quarter.

Supporting infrastructure studies covering power, water, road access, and tailings storage facilities have been commissioned or completed, underpinning the hub’s development. Horizon’s brownfield approach utilises existing approvals and infrastructure to accelerate the transition to a standalone, high-margin gold producer in the Kalgoorlie-Coolgardie region.

Exploration Success at Burbanks

The Burbanks project continues to impress with high-grade drilling results from the first phase of infill and extensional drilling. Notably, an ultra-high-grade intercept of 0.3 metres at 5,848 grams per tonne gold was recorded, confirming the potential for resource expansion. Other significant intercepts include 1.55 metres at 99.65 g/t Au and 1.7 metres at 37.18 g/t Au, highlighting the continuity and richness of mineralisation. These results support Burbanks as a key future feed source for the Black Swan Processing Hub.

Strategic Acquisitions and Divestments

During the quarter, Horizon completed the acquisition of the Gordons Dam Project, strategically located near the Black Swan plant, expanding its regional gold footprint. Conversely, the company executed a $35 million asset sale agreement for its non-core Lake Johnston nickel project to Forrestania Resources, receiving a $10 million non-refundable deposit with completion expected in the March quarter. This divestment aligns with Horizon’s strategy to focus on gold assets and fund the Black Swan refurbishment and restart.

Corporate and ESG Developments

Horizon’s cash position remains robust at $37.5 million, bolstered by the recent conversion of a convertible loan facility that rendered the company debt free. The company also completed a 15-to-1 share consolidation and appointed Christian Price as General Manager Corporate Development.

On the environmental and social front, Horizon achieved a significant milestone by executing a Native Title Land Use Agreement with the Marlinyu Ghoorlie Native Title Claimant Group. Covering approximately 90% of Horizon’s land package, this agreement establishes protocols for heritage protection and streamlines tenure approvals, reinforcing Horizon’s commitment to responsible and sustainable operations.