Horizon Gold Gum Creek DFS: A$350M Capex, 88k Oz/yr
Horizon Gold's Gum Creek project targets 88,000 oz annual production with A$350M upfront capital costs and A$2,995/oz AISC.
Key points
- Horizon Gold’s Gum Creek DFS targets 88,000 oz annual gold production with A$350M upfront capital costs.
- OreNova Engineering used AI tools to complete a parallel PFS in 13 days, matching DFS costs within 1.1%.
- The plant design achieves 91.5% total gold recovery with an AISC of A$2,995 per ounce.
Horizon Gold has advanced the Gum Creek gold project in Western Australia through the definitive feasibility study stage, outlining a development plan with upfront capital costs of A$350 million. The study confirms a production target of approximately 88,000 ounces of gold per year over an initial ten-year mine life, underpinned by a maiden ore reserve of 18.2 million tonnes at 1.24 g/t gold.
The project’s financial profile projects an all-in sustaining cost of A$2,995 per ounce, with production peaking at 114,000 ounces in the second year of operations. According to reporting from International Mining, the engineering phase was accelerated by Perth-based OreNova Engineering, which utilized proprietary AI tools to automate mechanical design deliverables for the processing plant.
AI Accelerates Plant Design Deliverables
OreNova Engineering was engaged by MineScope Services to perform a DFS-level process plant design and cost estimate for Horizon Gold. The company’s AI-driven workflow automates material selection, datasheet development, and 3D modelling, reducing the time required for these engineering tasks from weeks to days. Founder Brad Skajko states that the system achieves approximately 95% accuracy while automating up to 2,000 engineering hours within a few days.
To validate the primary study, OreNova completed a parallel pre-feasibility study in 13 days to conduct a bottom-up peer review. The resulting capital and operational cost estimates from this rapid analysis fell within 0.3% and 1.1% of the figures in the main DFS, respectively. The company aims to increase model accuracy to 99% in the coming year through the integration of additional software modules.
Gum Creek Processing Plant Specifications
The proposed processing facility is designed to handle 2.4 million tonnes of gold ore annually from multiple open-pit deposits. The plant configuration includes a primary jaw crusher, secondary and tertiary cone crushers, and a single-stage ball milling circuit. The combined life-of-mine gold feed grade is assessed at 1.19 g/t, supporting the overall production volume targets.
Recovery processes incorporate gravity gold recovery, carbon-in-leach, elution, and smelting. The design anticipates a total gold recovery rate of 91.5%, with gravity recovery contributing 29.8% of that total. Key metallurgical parameters include a Bond Ball Work Index of 18.3 kWh/t and a grinding size P80 of 75 micrometres, ensuring efficient liberation of gold-bearing minerals.
Reserve Base And Cost Structure
The economic viability of Gum Creek is anchored by a total resource assessment of 25.1 million tonnes at 1.19 g/t gold, containing 962,000 ounces. The maiden ore reserve comprises 18.2 million tonnes at 1.24 g/t, representing 728,000 ounces of contained gold. Over the life of the mine, the project is expected to deliver 880,000 ounces of recovered gold.
The A$350 million upfront capital expenditure covers the engineering, procurement, construction, commissioning, and ramp-up of the mining and processing infrastructure. The A$2,995 per ounce all-in sustaining cost reflects the integrated operational model, which relies on the high-efficiency processing circuit and consistent feed grades to maintain margin stability across the ten-year initial mine life.
