Horizon’s Black Swan PFS Fuels Growth

Key Concepts

• Prefeasibility Study: An initial study to assess the technical and economic viability of a project.
• Prenom Processing Rate: The planned rate at which ore will be processed.
• Communiation Circuit: The crushing and grinding stages of mineral processing.
• SAG Mill (Semi-Autogenous Grinding Mill): A large grinding mill that uses the ore itself as grinding media.
• Ball Mill: A grinding mill that uses steel balls as grinding media.
• CIL Circuit (Carbon-In-Leach): A gold recovery process where gold is adsorbed onto activated carbon.
• Nickel Flotation Circuit: A process used to separate nickel minerals from ore.
• Capex (Capital Expenditure): Costs incurred to acquire or upgrade physical assets.
• Opex (Operational Expenditure): Ongoing costs associated with running a business.
• Optionality: The flexibility to make future decisions based on evolving circumstances.
• Third-Party Ore: Ore sourced from external parties, not from the company's own mines.
• Feasibility Study: A detailed study to determine the technical and economic feasibility of a project.
• Financial Investment Decision (FID): A formal decision to proceed with a project based on its financial viability.
• Burbanks Project: A specific project asset mentioned.

Prefeasibility Study Progress and Throughput

The prefeasibility study is progressing well and is on track. The key takeaway is the planned prenom processing rate of 1.5 million tons per annum. This is a conservative estimate, considering the plant's capacity of 2.2 million tons per annum. Concurrently, mining studies are also being conducted and are progressing favorably. The company anticipates releasing the study results to the market in the upcoming quarter (December quarter).

Communiation Circuit Trade-off Studies

Three trade-off studies were conducted on the communition circuit (crushing and grinding):

1. Primary crushing into the SAG mill only: This is the cheapest option and the current infrastructure at Black Swan supports it. Met test work indicates a throughput of 1.5 million tons per annum is achievable with this configuration.
2. Primary crushing into the SAG mill and activating the ball mill: This option involves a modest increase in capital expenditure (capex) and operational expenditure (opex) but provides significant flexibility. Activating the ball mill allows for increased throughput, processing harder ore, or utilizing third-party ore. Refurbishing both mills (SAG and ball mill) offers greater optionality for the future.
3. Third-stage crushing: This option was also evaluated.

The company highlights that Option 2, with both mills operational, offers "great optionality" and flexibility.

Transitioning to a Gold Plant

The current configuration at Black Swan includes a nickel flotation circuit. The company plans to build a brand new Carbon-In-Leach (CIL) circuit on the back end of the existing crushing and grinding circuits. This strategic move will transform the nickel plant into a gold plant, which is described as a "game changer" for Horizon.

Currently, Horizon mines and treats its ore using third-party milling infrastructure. By establishing its own gold plant, the company gains control over its "destiny" and enhances its ability to scale up operations. This positions Horizon to become an "emerging mid-tier gold producer."

Upcoming News Flow and Project Milestones

For investors, several key news flow events are anticipated:

• Feasibility Studies: Expected to be released in the December quarter.
• Burbanks Project Drilling: Drilling is currently underway at the Burbanks project, which is described as a cornerstone asset with a large resource base and high grade. Positive results are expected to be released to the market shortly.
• Financial Investment Decision (FID): A financial investment decision on the feasibility study is planned for the December quarter.
• Construction: Construction is targeted to commence in early 2026.
• Gold Plant Commissioning: The new gold plant is expected to be operational by the end of 2026.

Conclusion

Horizon is making significant progress on its prefeasibility study, targeting a 1.5 million ton per annum processing rate. Strategic decisions regarding the communition circuit are focused on maximizing flexibility and optionality, with a particular emphasis on activating the ball mill for enhanced capabilities. The company is undertaking a transformative project to convert its existing nickel plant into a gold processing facility by building a new CIL circuit. This move is expected to provide greater operational control and scalability, positioning Horizon as a future mid-tier gold producer. Key milestones include the release of feasibility studies and drilling results from the Burbanks project in the December quarter, followed by an FID, construction in early 2026, and the commissioning of the new gold plant by the end of 2026.