Horizon Minerals Ltd assesses optimal economic path for Nimbus amid rising demand for silver and zinc

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“The company will continue to work to develop a longer-term production profile underpinning a concentrator at the site and looks forward to the success of further drilling and the completion of the DFS,” MD said.

Horizon Minerals Ltd (ASX:HRZ) has completed an independent data review and concept study to assess the optimal pathway for its Nimbus Silver-Zinc project 15 kilometers east of Kalgoorlie-Boulder in Washington State and next to the company’s Boorara Gold project, amid growing demand. for silver and zinc.

The concept study confirmed the optimal economic path by mining the high grade veins and producing a silver and zinc concentrate with more drilling required to increase the overall tonnage and life of the mine. mine.

A high-grade vein exists in this resource immediately below the historic Discovery pit and has a resource estimate of 260,000 tonnes grading 774 g/t silver for 6.4 million ounces and 12.8% zinc for 33,000 tons of zinc and there is also an exploration target that the company aims to firm up in other resources.

Going forward, approvals are in place to advance the project to the next level of study and drill testing for additional high-grade tonnage at depth and along the Gretel-Nimbus-Brindabella trend.

Drilling is scheduled for the June and September quarters pending work approvals with the completion of a revised Definitive Feasibility Study (DFS) scheduled for the March quarter of 2023.

“Growth potential”

Commenting on the Nimbus project, Horizon Managing Director Jon Price said: “With silver and zinc posting sustained price increases, we see the potential to develop the higher grade core within the resource. Nimbus at depth and along strike.

“The company will continue to work to develop a longer-term production profile underpinning a concentrator at the site and looks forward to the success of further drilling and the completion of the DFS.”

Rising demand

Silver is currently trading at AU$34 per ounce and zinc at AU$5,200 per tonne, with rising demand expected for the production of electronics, power transmission and photovoltaic cells used in vehicles electricity and solar panels in addition to traditional wealth storage and galvanizing.

The current Worldwide Mineral Resource estimate for Nimbus is: 12.1 million tonnes grading 52 g/t silver for 20.2 million ounces of silver and 0.9% zinc for 104,000 tonnes of zinc.

Notably, there is also a conceptual exploration target beneath the Nimbus pits comprising silver oxide and primary zinc-silver-lead sulphide mineralization, between 550,000 and 700,000 tonnes with a grade range of 3. 4 to 3.6% zinc and 140 to 210 g/t. silver, with some lead (0.45-0.65%).

A gold concentrate from Horizon’s existing refractory ore at Teal Deeps, Jacques Find and Peyes Farm was also evaluated, which improved mine life and economics.

Indicative termsheets have been received from several potential extraction partners in Europe capable of smelting the complex metallurgy of the concentrate.

Summary of Comments

Horizon completed a strategic review of the Nimbus Silver-Zinc project in 2021 and elected to retain the project 100%.

An independent review by Australian Mining Consultants (AMC) and Sedgmen has been commissioned to assess historical data, mine optimizations and metallurgical works to assess the optimal way forward for the project.

The review highlighted the project’s potential through underground mining of fresh, higher-grade ore below the historic Discovery pit and production of silver and a zinc concentrate for sale to development partners. potential extraction.

A gold concentrate was also evaluated to improve overall mine life given the need for additional tonnage to support a concentrator on site.

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