Horizon Gold has reported a series of broad, high-grade gold intercepts from recent RC drilling at its Gum Creek Project in Western Australia, reinforcing the potential for resource expansion near its planned processing plant.
- Broad high-grade gold intercepts at Kingfisher, Hawk, and Swan
- Drilling confirms continuity and strike extensions at Kingfisher
- Follow-up drilling planned ahead of Mineral Resource updates in 2026
- Results sit outside existing Definitive Feasibility Study resource base
- Gum Creek Project hosts 2.3 million ounces gold resource
High-Grade Gold Hits Reinforce Gum Creek Potential
Horizon Gold Limited (ASX:HRN) has unveiled a fresh tranche of compelling gold intercepts from its 100%-owned Gum Creek Gold Project, highlighting the Kingfisher, Hawk, and Swan prospects as prime candidates for resource growth. The recent Reverse Circulation (RC) drilling campaign returned multiple broad zones of high-grade gold mineralisation, with standout results including a 23m interval grading 5.26 g/t Au at Kingfisher and a 12m intercept at 2.30 g/t Au at Hawk.
These results not only confirm the continuity of mineralisation in previously under-drilled areas but also extend known gold shoots along strike and down plunge, particularly at Kingfisher and Hawk. The drilling was strategically targeted to infill gaps and test extensions near the proposed 2.4 million tonnes per annum processing plant, potentially enhancing the project's economics beyond those outlined in the recent Definitive Feasibility Study (DFS).
Kingfisher Drilling Validates Strike Extensions and High Grades
The Kingfisher prospect, situated 3.5km south-southeast of the old Gidgee Mill, hosts an open cut Mineral Resource Estimate (MRE) of 1.22 million tonnes at 2.01 g/t Au for 78,900 ounces and an underground MRE of 1.04 million tonnes at 3.38 g/t Au for 113,500 ounces. The recent 3,273m RC program comprising 20 holes focused on infilling a northern resource gap and testing strike extensions to the north.
Among the intercepts, hole KFRC038 delivered 23m at 5.26 g/t Au from 188m, including a high-grade 15m at 7.65 g/t Au, while KFRC042 returned a 45m interval at 1.24 g/t Au from 114m. These results underscore the potential to expand the open pittable resource and improve confidence levels ahead of a planned MRE update later this year.
Hawk and Swan Show Encouraging Down-Plunge and Shallow Extensions
At Hawk, located 5km south-southeast of the Gidgee Mill, three holes totaling 552m targeted a north-plunging high-grade shoot beneath the existing resource. Significant intercepts included 12m at 2.30 g/t Au from 140m and 5m at 3.46 g/t Au from 159m. The mineralisation is hosted within steeply dipping quartz-carbonate-pyrite shear veins, with further drilling planned to delineate extensions down plunge and along strike before the resource update.
Swan, just 700m east of the mill, saw five RC holes aimed at extending mineralisation northwards. Notable results included 16m at 1.84 g/t Au from 45m, indicating steep west-dipping mineralisation that will prompt geological model revisions. Additional shallow drilling is scheduled to test these strike extensions ahead of the Swan MRE update.
Project Scale and Economic Outlook Remain Robust
Gum Creek's total Mineral Resource stands at approximately 38 million tonnes grading 1.89 g/t Au for 2.3 million ounces, with a recent DFS confirming an open pit Ore Reserve of 18.2 million tonnes at 1.24 g/t Au for 728,000 ounces. The project aims for an average annual production of 88,000 ounces over a 10-year mine life, with peak output of 114,000 ounces in year two and an all-in sustaining cost of A$2,995 per ounce.
Managing Director Scott Williamson emphasised the significance of these drilling results, stating they lie outside the current DFS resource base and could materially enhance project economics. The company is preparing follow-up drilling campaigns to further test these targets prior to updating Mineral Resource Estimates later in 2026.
Funding and Forward-Looking Considerations
While the DFS assumes initial capital expenditure of approximately A$350 million and a production target underpinned mainly by Probable Ore Reserves, Horizon acknowledges the inherent uncertainties in capital raising and market conditions. The company maintains that the assumptions behind its production targets and financial forecasts remain valid, with no material changes since the July 2026 DFS announcement.
As Horizon advances its exploration and development plans, the market will be watching how these high-grade extensions translate into resource upgrades and how funding strategies evolve to support project construction and ramp-up.
Bottom Line?
Horizon Gold’s strong drilling results at Gum Creek set the stage for resource upgrades that could reshape project economics, but the path to funding and development remains a critical watchpoint.
Questions in the middle?
- How will the upcoming Mineral Resource updates incorporate these new high-grade intercepts?
- What impact might resource expansions have on the project’s capital and operating cost assumptions?
- How prepared is Horizon Gold to secure the necessary funding amid market uncertainties?