Horizon Minerals Black Swan Project Delivers Strong Development Economics

Horizon Minerals Delivers Breakthrough Gold Development Study for Western Australia

Horizon Minerals has released compelling Scoping Study results for its Black Swan Project Processing Hub (BSPH), demonstrating a robust pathway to become a significant independent gold producer in Western Australia's premier Goldfields region. The study outlines an attractive 102,000oz average annual gold production opportunity with total pre-production capital expenditure of $160.5 million and a remarkably short 18-month payback period.

Furthermore, the Horizon Minerals Black Swan Project represents a strategic consolidation of the company's regional gold assets, leveraging existing infrastructure whilst establishing a central processing hub capable of treating ore from multiple deposits across Horizon's extensive Kalgoorlie portfolio.

Strong Economics Underpin Development Case

The financial metrics from the Scoping Study present a compelling investment proposition. At a conservative gold price assumption of $5,500/oz, the Project delivers exceptional returns that position it amongst the most attractive emerging gold developments in Australia.

Total gold production over the initial 5-year mine life reaches 546,000 ounces, with 74% of the mine plan supported by Measured and Indicated Resources—providing strong confidence in the production profile. This resource classification underpins the project's technical feasibility and reduces execution risk significantly.

CEO Grant Haywood commented: "The study outcomes demonstrate the quality of our assets and show a robust economic case to support our vision of becoming a meaningful, independent WA gold producer. Our initial plans have well and truly been met with the plant study having now been upscaled to its nameplate capacity of 2.2Mtpa whilst achieving our aspirational target of production of 100,000 ounces per annum."

What is Nameplate Capacity?

Nameplate capacity refers to the maximum design throughput rate that a processing plant was originally engineered to handle under optimal conditions. For Black Swan, this 2.2 million tonnes per annum (Mtpa) represents the plant's full design potential.

This is significant for investors because operating at nameplate capacity maximises operational efficiency and unit economics. In addition, it provides flexibility to handle varying ore feed quantities from multiple mine sources without bottlenecking production.

Dual-Mode Processing Flexibility Enhances Operational Efficiency

One of the standout features of the Black Swan design is its dual-mode processing capability. The upgraded flowsheet can seamlessly operate at both 1.5Mtpa and 2.2Mtpa throughput rates, depending on mine production schedules and ore availability.

This operational flexibility provides several investor benefits:

• Risk mitigation during commissioning and ramp-up phases
• Scalability to match varying mine feed profiles
• Optimised capital deployment through phased capacity utilisation
• Enhanced reliability through brownfields infrastructure upgrades

The $101 million processing plant capital cost reflects deliberate investment in long-term reliability, including new SAG and Ball mill motors, electrical infrastructure upgrades, and structural enhancements to support full nameplate operation.

Robust Resource Foundation and Mine Life Profile

The Horizon Minerals Black Swan Project is supported by 10 deposits across Horizon's regional portfolio, containing approximately 1.4 million ounces in the Scoping Study mine plan. The production schedule demonstrates strong sequencing with consistent annual output.

The mining plan strategically prioritises Measured and Indicated Resources in early years, with Inferred Resources comprising only 26% of total production. This conservative approach provides confidence that resource conversion drilling will upgrade classifications well ahead of planned mining.

Strategic Infrastructure Advantages Drive Capital Efficiency

The Horizon Minerals Black Swan Project location delivers significant infrastructure benefits that reduce both capital requirements and operational risks. These advantages are particularly important in the current high-cost construction environment.

The project benefits from:

• Existing crushing and grinding infrastructure requiring refurbishment rather than greenfield construction
• Established electrical connection to Western Power grid with backup diesel generation capability
• Sealed highway access to all mine sites via proven haulage routes
• Proximity to Kalgoorlie-Boulder providing skilled workforce and logistics support
• Current mining leases with major approvals either completed or well advanced

However, the most significant advantage is the ability to leverage proven processing infrastructure, which substantially reduces both capital intensity and development timeline compared to greenfield alternatives.

Funding and Development Timeline

Horizon has launched a $175 million underwritten placement to fully fund Project development, providing coverage for the $198 million funding requirement plus contingency buffer. Combined with existing cash reserves and proceeds from asset divestments, the Company is positioned to commence construction activities.

Key development milestones include:

1. Front-end Engineering Design (FEED) commencement
2. EPC contract tender and award for processing plant
3. Long-lead item procurement to maintain construction schedule
4. Mine development and permitting finalisation
5. Target commissioning by mid-2027

For instance, the company has already initiated discussions with potential EPC contractors to maintain the aggressive development timeline. This proactive approach demonstrates management's commitment to achieving production targets.

Why Should Investors Follow Horizon Minerals?

The Horizon Minerals Black Swan Project Scoping Study represents a transformational milestone for the company, demonstrating its ability to consolidate regional assets into a cohesive, high-return development proposition. Several factors make this an investment story worth monitoring closely.

Strategic Asset Consolidation: Horizon has systematically acquired complementary deposits within economic haulage distance of Black Swan, creating a diversified ore feed pipeline that extends well beyond the initial 5-year mine plan. This strategy reduces single-asset risk whilst maximising infrastructure utilisation.

Brownfields Development Model: By leveraging existing infrastructure, Horizon significantly reduces both capital intensity and development risk compared to greenfield projects, whilst maintaining strong economic returns. This approach is particularly valuable in today's high-cost construction environment.

Tier-1 Jurisdiction Advantages: The Western Australia Goldfields region provides political stability, established infrastructure, and a skilled mining workforce—critical factors for operational success. Moreover, the region's mining-friendly regulatory environment facilitates project advancement.

What are the Growth Opportunities Beyond Initial Mine Plan?

Resource Growth Potential: With total Mineral Resources of 1.88 million ounces across the broader portfolio, the Project offers substantial opportunity for mine life extension and production expansion beyond the initial plan. Furthermore, the company continues exploration activities across its extensive tenure package.

Management Track Record: The Company's systematic approach to asset acquisition, technical studies, and stakeholder engagement demonstrates the capability to execute complex multi-asset development projects. This experience provides confidence in successful project delivery.

Key Investment Catalyst: "Horizon Minerals has positioned itself as an emerging mid-tier gold producer in Australia's premier mining jurisdiction, with a defined pathway to 100,000+ ounce annual production. With construction targeted to commence mid-2026 and first gold production by mid-2027, investors should closely monitor development progress and resource expansion activities."

The Horizon Minerals Black Swan Project study results validate the company's regional consolidation strategy whilst providing a robust economic foundation for transition from explorer to producer. As Horizon advances through development phases and continues resource expansion drilling, the investment thesis strengthens significantly, making it a compelling opportunity in the Australian gold sector.

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