Horizon Minerals unveils robust scoping study results for its Black Swan Project in WA, outlining a low-capital, high-return gold development targeting 102,000 ounces annually. The company launches a $175 million placement to fund construction and advance operations toward mid-2027 commissioning.
- Black Swan Project targets 102koz average annual gold production
- Initial 5-year mine life with 74% Measured and Indicated Resources
- Pre-tax NPV8 of A$631 million and IRR of 83%
- Total capital expenditure estimated at A$160.5 million
- Funding gap of A$198 million addressed via $175 million underwritten placement
A Standalone Gold Opportunity in the Heart of WA Goldfields
Horizon Minerals has released the results of comprehensive scoping studies supporting the standalone development of its 100%-owned Black Swan Project Processing Hub (BSPH), located near Kalgoorlie in Western Australia's prolific Goldfields region. The studies confirm a compelling gold development opportunity leveraging existing infrastructure, with an average annual production forecast of approximately 102,000 ounces over an initial five-year mine life.
The project’s mine plan is underpinned by a substantial resource base, with around 74% of the planned ore feed classified as Measured and Indicated Resources, providing a solid foundation for operational confidence. The balance comprises Inferred Resources, which carry a lower geological certainty but offer upside potential as ongoing drilling programs aim to upgrade resource classifications.
Robust Economics and Capital Efficiency
Financial modelling at a conservative gold price of A$5,500 per ounce reveals robust project economics. The Black Swan Project boasts a pre-tax net present value (NPV8) of approximately A$631 million and an internal rate of return (IRR) of 83%, with a payback period of just 18 months from plant commissioning. Total pre-production capital expenditure is estimated at A$160.5 million, including A$101 million for processing plant refurbishment and upgrades, site establishment, and mine development costs.
Operating costs are competitive, with an all-in sustaining cost (AISC) of around A$3,353 per ounce, positioning the project well within the current gold price environment. The studies also highlight the potential for operational flexibility, with the processing plant designed to operate at either 1.5Mtpa or an expanded 2.2Mtpa throughput, allowing Horizon to scale production in line with mine output and market conditions.
Leveraging Existing Infrastructure and Regional Expertise
The Black Swan processing hub will repurpose and upgrade legacy nickel concentrator infrastructure, including crushing and grinding circuits, supplemented by new gold-specific processing units. This brownfields approach reduces capital intensity and accelerates the timeline to production, with commissioning targeted for mid-2027.
Supporting infrastructure studies have addressed critical elements such as power supply, water resources, accommodation, and haulage logistics. Horizon Minerals has adopted a dual-supply power strategy combining grid connection with a diesel power station to mitigate regional grid reliability risks. Water supply plans include refurbishment of existing borefields and the installation of a new reverse osmosis plant. An on-site accommodation camp is planned to alleviate regional housing constraints during construction and operations.
Advancing Toward Development with Strong Board Support
With the scoping studies delivering a strong technical and economic foundation, Horizon Minerals’ board has approved early works, including front-end engineering design (FEED), contractor engagement, and procurement of long-lead items. The company has launched a $175 million underwritten placement to fully fund the $198 million capital requirement, supplemented by existing cash reserves and proceeds from recent asset sales.
Exploration and resource drilling programs continue, focusing on upgrading resource classifications and extending mine life, particularly at the high-grade Burbanks deposit. The company plans to proceed without a Definitive Feasibility Study (DFS), leveraging the brownfields nature of the project and existing industry-standard processing technology to expedite development.
Navigating Risks and Unlocking Potential Upside
While the project’s economics are robust, investors should note the inclusion of Inferred Resources in the mine plan, which introduces geological uncertainty. Funding execution, permitting timelines, and operational risks remain key considerations. However, ongoing drilling and optimization studies may convert additional resources to higher confidence categories, potentially enhancing the mine plan and extending the project’s life beyond the initial five years.
Horizon Minerals’ strategic consolidation of assets in the Kalgoorlie region and the integration of multiple open pit and underground deposits into a central processing hub position the company to become a meaningful independent gold producer in Western Australia.
Bottom Line?
As Horizon Minerals moves swiftly toward construction and commissioning, the Black Swan Project stands poised to reshape its gold production profile, investors will watch closely for drilling updates and operational milestones.
Questions in the middle?
- How will ongoing drilling at Burbanks impact resource classification and mine life extension?
- What are the risks and timelines associated with securing all necessary permits and approvals?
- How will Horizon Minerals manage operational challenges related to integrating multiple open pit and underground sources into a single processing hub?