Horizon Gold discovers high grade gold at Gum Creek project

Horizon Gold has found high-grade gold at its Gum Creek project in Western Australia. The discovery is outside the area the company has already planned to mine. Drilling hit a 23-metre section of rock containing 5.26 grams of gold per tonne, which is considered a strong result. This matters because the company recently completed a detailed study of the project. That study estimated the project could generate $1.85 billion in total cashflow and has a net present value of $1.3 billion. Net present value is a way to measure how much a project is worth in today's money. Finding gold outside the planned mine area suggests the project could grow larger than the study assumed.