Horizon Gold's Gum Creek Project Shows Strong Economics in DFS

Horizon Gold announced its Gum Creek gold project in Western Australia could generate strong returns, according to its definitive feasibility study. The study points to a pre-tax net present value of AUD 1.307 billion and an internal rate of return of 53.1% at a gold price of AUD 5,500 an ounce.

The company's shares remained unchanged at $0.96 after the release of the DFS, which shows the project could produce 880,000 ounces over 10 years with average annual output of 88,000 ounces. All-in sustaining cost is estimated at about AUD 2,995 an ounce, versus a current spot price near AUD 6,000.

The study outlines a simple open-pit, free-milling gold project with strong economics and low technical complexity. Management sees significant upside beyond the base case from underground mining, throughput expansion, and sulfide ore opportunities.