Horizon Minerals Signs Ore Sale Agreement with Paddington Gold, Resumes Gold Production
Horizon Minerals has announced a binding Ore Sale Agreement (OSA) with Paddington Gold, a subsidiary of Norton Gold Fields, for the treatment of 1.4 million tonnes of ore from the Boorara Gold Project. This agreement marks a significant step for Horizon as it prepares to resume gold production in the second half of 2024.
Under the terms of the OSA, Horizon will oversee the mining and transportation of ore to Norton’s Paddington Mill, which is strategically located approximately 56 kilometers from Boorara. The agreement specifies that the ore processing will extend over 22 months starting in the September 2024 Quarter.
The financial structure of the agreement includes competitive treatment rates and a payment system where Paddington Gold will pay Horizon 50% of the gross revenue minus estimated processing costs and royalties within five days of ore delivery. The final revenue will be calculated after the complete treatment of the stockpile, considering the determined grade, moisture, and metallurgical recovery, alongside the costs and state royalty deductions.
This deal utilizes less than 15% of the current Boorara Mineral Resource, providing Horizon with a substantial remaining reserve for future operations and agreements. The contract ensures continuous production flow and financial returns, bolstering Horizon’s position in the gold mining industry.
