Horizon Minerals has executed a joint venture agreement with Australia-based Orminex, for the acquisition of 50% stake in the Penny’s Find gold project.

Penny’s Find is a high-grade, underground mining and toll treatment project, located 50km northeast of Kalgoorlie on a granted mining lease, in the Eastern Goldfields of Western Australia.

Orminex had acquired the project from Empire in May 2019, and completed the underground mine evaluation and design work, and gained approvals for mine development and independent assessment for further drilling.

The agreement enables Horizon to acquire 100% of the project through the exclusive right to acquire the remaining 50% on completion of the toll milling contract.

Horizon is funding for the acquisition and development work from its existing cash reserves of more than A$15m ($11m).

Horizon will fund pre-development expenditure for Penny’s Find

According to JORC 2012 Mineral Resource Estimate, the project currently has 248,000t at 7.04g/t Au for 56,000 ounces with 147,000t at 8.06g/t Au in the Indicated Category.

The company said that the mine development work is advanced, with statutory approvals in place for underground mining in the first half of 2021.

The pre-development expenditure will be solely funded by Horizon, with the joint venture partners funding the project on a 50:50 basis thereafter.

Open pit mining at Penny’s Find was completed in 2018 with 18,350 ounces recovered from the treatment of 140,000t grading 4.5g/t Au with an overall gold recovery of 92.4%.

In October, Horizon signed an agreement with private consortium NBT Metals for the acquisition of the Kalpini gold project in the Western Australian goldfields.