Horizon Gold’s Gum Creek DFS Charts Clear Path to 880,000 Ounce WA Gold Mine

Robust Economics Anchor Gum Creek Development

Horizon Gold (ASX:HRN) has delivered a Definitive Feasibility Study (DFS) for its 100%-owned Gum Creek Gold Project in Western Australia's Mid-West region that lays out a compelling pathway to production. The open pit operation targets an average annual production of 88,000 ounces over a 10-year mine life, with total gold recovered expected to reach 880,000 ounces. The pre-production capital expenditure is pegged at A$350 million, covering mine development, processing plant, and infrastructure.

Financially, the project shines with a pre-tax net present value (NPV5) of A$1.3 billion and an internal rate of return (IRR) of 53.1%, assuming a gold price of A$5,500 per ounce. The payback period from first production is a swift 23 months. Operating costs are competitive, with an all-in sustaining cost (AISC) of A$2,995 per ounce, underscoring the project's strong margin potential.

Exploration Extends High-Grade Mineralisation

The DFS is underpinned by a maiden Ore Reserve estimate of 18.2 million tonnes at 1.24 g/t gold for 728,000 contained ounces, primarily from seven priority open pit deposits. Meanwhile, resource growth continues with exploration drilling delivering significant intercepts across multiple prospects.

At the Omega prospect, deep diamond drilling has extended high-grade mineralisation over 120 metres down plunge, with notable intercepts such as 14 metres at 2.87 g/t gold including 8 metres at 4.60 g/t. Kingfisher drilling has confirmed and expanded geological models, uncovering new gold shoots with assays including 5 metres at 2.42 g/t gold and 4 metres at 11.4 g/t gold. Reverse Circulation (RC) drilling at Swift and Eagle prospects returned high-grade hits up to 6 metres at over 5 g/t gold, while Goldfinch and Shrike South prospects show promising extensions to mineralisation with no current Mineral Resource Estimates (MREs).

Capital Raise Fuels Feasibility and Exploration

To support these developments, Horizon completed a $30 million capital raising comprising a $20 million private placement and a $10.2 million non-renounceable entitlement offer. The proceeds are earmarked for advancing the feasibility study, funding an 80,000-metre exploration drilling program, and general working capital. As of 30 June 2026, the company held approximately A$24 million in cash, positioning it well to execute planned activities.

Path to Final Investment Decision and Construction

With the DFS endorsed by the board, Horizon is progressing detailed engineering, project approvals, and early contractor involvement, targeting a Final Investment Decision (FID) in the second quarter of 2027. Subject to environmental approvals and financing, plant construction is slated to begin in the fourth quarter of 2027, aiming for first gold production in the second half of 2028.

The company acknowledges that about 6% of the production target includes inferred resources, which carry lower geological confidence. However, these do not materially impact the project's viability or early mine plan. Financing arrangements remain a key next step, with Horizon actively engaging advisors to secure appropriate project funding.