Horseshoe Lights Project Commercial Development Option Granted over Gold Surface Materials Processing Rights

About this update from Horseshoe Metals Limited

Horseshoe Metals Ltd (ASX: HOR) (Horseshoe or Company) is pleased to advise that its wholly owned subsidiary Murchison Copper Mines Pty Ltd (MCM) has entered into a Gold Surface Materials Rights Agreement (Agreement) with Melody Gold Pty Ltd (Melody Gold) for the right to process gold surface materials at the Horseshoe Lights Copper-Gold Mine . The Agreement covers designated gold surface materials adjacent to the historic open pit at HSL, including four subgrade stockpiles; the rehandle stockpile, gold leach vats, and perimeter; the gold ROM stockpile and gold and flotation tailings (Gold Surface Materials). Melody has advised it intends to treat up to 500,000 tonnes per annum in its proposed retreatment of the gold surface material utilising gravity recovery to produce a gold-copper-silver concentrate. Commenting on the new development, Director Kate Stoney said: 'Our team has hit the ground running in 2025; this agreement with Melody Gold signalling our clear intention to commercialise the significant and highly valuable copper and gold surface stockpiles at Horseshoe Lights as quickly as possible. The rebirth of the Horseshoe Lights Copper-Gold Project , driven in the initial stages by the commercialisation of the significant existing copper and gold surface stockpiles represents a fantastic opportunity for our shareholders and we look forward to providing regular updates as our team accelerates this strategy over the coming weeks and months.' About Melody Gold Melody Gold is a Perth -based mining company which specialises in the production, retreatment and export of high-quality gold and copper concentrate, with current operations focusing on the Eastern Goldfields . Its partners include Shandong Gold Co. Ltd. one of China's largest gold producers and Yantai Jinao Environmental Protection Technology Co. Ltd. , a major mineral processing firm. Agreement Background MCM is the holder of M 52/743, the mining lease covering the Gold Surface Materials (Tenement). Only the designated Gold Surface Materials at the Tenement are covered by the Agreement. MCM retains the rights to all subsurface gold on the Tenement, as well as all other high-grade copper and mixed copper/gold surface materials forming part of the Company's strategy for the sale of DSO material (refer ASX releases 31 October 2023 and 23 April 2024). Agreement Details Under the terms of the Agreement, MCM has granted Melody Gold the option for the right to the Gold Surface Materials (Option). In consideration for granting the Option, MCM has received payment of a partially refundable cash fee of $75,000 upon execution of the Agreement (Option Fee). The Option is granted for a period of 90 days (or such later period as mutually agreed), during which time the parties will have the opportunity to carry out necessary due diligence activities and seek any statutory approvals required. To exercise the Option, Melody Gold must make a non-refundable cash payment of $25,000 . Upon exercise of the Option, MCM will grant a licence to Melody Gold for an initial period of three (3) years (Term), encompassing the right to process the Gold Surface Materials pursuant to section 118A of the Mining Act 1978 (WA) and the right to access additional specified areas of the Tenement (including water bores) relevant to its processing activities (Licence). The Term may be renewed by Melody Gold for two (2) further periods of three (3) years by giving MCM 60 days of written notice. Contact: Enquiries Kate Stoney Email: [email protected] Tel: +61 8 6241 1844 Sam Burns Tel: +61 400 164 067 About the Horseshoe Lights Project The Horseshoe Lights Project includes the historic open pit of the Horseshoe Lights copper-gold mine which operated up until 1994, producing over 300,000 ounces of gold and 54,000 tonnes of contained copper, including over 110,000 tonnes of Direct Shipping Ore (DSO) which graded between 20-30% copper. The Horseshoe Lights ore body is interpreted as a deformed Volcanogenic Hosted Massive Sulphide (VMS) deposit that has undergone supergene alteration to generate the gold-enriched and copper-depleted cap that was the target of initial mining. The deposit is hosted by quartz-sericite and quartz-chlorite schists of the Lower Proterozoic Narracoota Formation. Past mining was focused on the Main Zone , a series of lensoid ore zones, which passed with depth from a gold rich oxide zone through zones of high-grade chalcocite mineralisation into massive pyrite-chalcopyrite. To the west and east of the Main Zone , copper mineralisation in the Northwest Stringer Zone and Motters Zone consists of veins and disseminations of chalcopyrite and pyrite and their upper oxide copper extensions. Forward Looking Statements Horseshoe Metals Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Horseshoe Metals Limited , its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. This announcement may contain forward-looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. (C) 2025 Electronic News Publishing, source ENP Newswire

View stock analysis, news, and events for Horseshoe Metals Limited