Horizon Gold has reported its strongest Snook intercept to date, including 44 metres at 5.08g/t gold, as drilling points to deeper resource potential at Gum Creek. Results at Cobia and Alma May could also support maiden resources, although further drilling and technical work remain ahead.
- 44m at 5.08g/t gold at Snook, including 11m at 16.30g/t
- Snook mineralisation confirmed to approximately 230m below surface
- Cobia and Alma May results support planned maiden resources
- Follow-up RC and diamond drilling is being planned
- Intercepts are downhole widths, not confirmed true widths
Snook drilling delivers Horizon’s strongest intercept
Horizon Gold Limited (ASX:HRN) has produced its best gram-metre result to date at the Snook prospect, returning 44 metres at 5.08g/t gold from 145 metres, including 11 metres at 16.30g/t. The result came from the deepest drilling completed at Snook and placed mineralisation at approximately 230 metres below surface.
The 25-hole, 5,151-metre RC program was designed to extend the existing Snook resource down plunge beneath the Snook North and Snook South open pits. Other notable results included 14 metres at 5.18g/t from 88 metres, 12 metres at 5.72g/t from 135 metres and 14 metres at 4.12g/t from 204 metres. The company said the drilling confirmed the interpreted steep, south-plunging geometry of the high-grade mineralisation.
Snook currently carries a resource of 0.92 million tonnes at 1.82g/t for 54,000 ounces, defined over a 550-metre strike. Horizon said the new results point to potential resource expansion at depth and may support a larger open pit as well as underground mining potential. A resource update is planned after further drilling. The results add to a run of strong Gum Creek drilling results reported across other prospects, although the latest intercepts remain exploration results rather than an updated resource or reserve.
Cobia and Alma May move towards maiden resources
At Cobia, 20 RC holes totalling 2,043 metres were drilled to fill gaps in historic shallow drilling south of the existing open pit. The program returned 21 metres at 2.08g/t from 76 metres, including 15 metres at 2.68g/t, alongside 10 metres at 1.65g/t and a shorter 3-metre interval at 5.16g/t.
Horizon said the work confirmed continuity of supergene mineralisation along strike and showed similarities between Cobia’s primary mineralisation and the Snook system. Cobia has no current mineral resource estimate, but a maiden resource is planned before additional drilling, including possible diamond drilling to the south.
Fourteen RC holes for 964 metres at Alma May also returned several shallow mineralised intervals north of the open pit, including 5 metres at 2.79g/t from 26 metres and 5 metres at 2.62g/t from 21 metres. The company said the results confirmed steeply west-dipping mineralisation and highlighted potential for a resource along strike to the north. A maiden resource and subsequent pit optimisation work are planned before further drilling.
Resource growth still needs technical conversion
The headline grades are material, but the reported widths are measured downhole. Horizon estimates true widths at roughly 71% of the intercept at Snook, 57% at Cobia and 64% at Alma May. The results were reported using a 0.2g/t gold lower cut, up to two metres of internal dilution and no top cut, with assays completed by 50-gram fire assay.
The exploration campaign is being conducted against the backdrop of Horizon’s recent Gum Creek feasibility work, which outlined an initial 10-year open-pit operation targeting 880,000 ounces of recovered gold and requiring about A$350 million of initial capital. The company has previously flagged Gum Creek’s development funding warning, making the conversion of exploration success into updated resources, mine plans and financeable economics particularly important.
Follow-up RC and diamond drilling is now being planned across all three prospects. The next hard catalysts are the Snook mineral resource update and maiden estimates for Cobia and Alma May. Until those arrive, the question is not whether the assays are eye-catching, but how much of the mineralisation can be converted into resource ounces with sufficient continuity, metallurgy and mining confidence.
Bottom Line?
The drilling has improved Gum Creek’s growth narrative, but the next resource updates will determine whether high-grade intercepts translate into mineable ounces and a larger development case.
Questions in the middle?
- How much could Snook’s deeper mineralisation add to the next resource estimate after true-width and continuity adjustments?
- Will Cobia and Alma May produce maiden resources large enough to influence Gum Creek’s mine plan or project economics?
- Can Horizon secure the capital required to develop Gum Creek while it continues funding exploration and technical studies?