[Ferro-Alloys.com] Horizon Minerals Ltd. (ASX:HRZ) is pleased to announce an update of the Pre-Feasibility Study (PFS or Study) and progress of the Bankable Feasibility Study (BFS) for the Richmond vanadium project located in Central North Queensland.

The Richmond vanadium project is located approximately 35km north-west of Richmond in Northwest Queensland. Richmond is a regional service town of 650 people situated 500km by road to the west of Townsville and 400km east of the mining town of Mt Isa.

HIGHLIGHTS

- Updated Pre-Feasibility Study completed and Bankable Feasibility Study progressed for the 1.8Bt Richmond vanadium project in central north Queensland

- The Mineral Resource for the advanced Lilyvale deposit within the project area stands at:

o 560Mt grading 0.48% V2O5 for 2.6Mt V2O5 at a 0.30% lower cut-off

- The maiden open pit Ore Reserve at Lilyvale is estimated at:

o 459.2Mt at 0.49% V2O5 for 2.25Mt of contained V2O5 product

- Updated Pre-Feasibility Study based on an initial 20-year life (representing 18% of maiden Ore Reserve) demonstrating a financially strong project with the following key metrics:

o Shallow low impact open pit mining producing 80.4Mt of oxide ore at a fully diluted grade of 0.49% V2O5 for 15.64Mt of 1.82% V2O5 with concentrate production on site

o Refining overall recovery at 86.1% produces 251,500 tonnes of 98% V2O5 commercial grade flake with average annual production of 12,700t V2O5

o Modest up-front capital costs of A$243m and operating cash costs of A$8.66/lb of 98% V2O5 flake

o At current spot price of A$16.44/lb V2O5, project generates NPV10% of A$1.09B with IRR of 62% and a rapid payback of 1.9 years

- BFS progressing with work to date including offtake and alliance discussions with electrolyte and battery manufacturers, final flowsheet design, onshore refining assessment and project approvals for advancement to major project status

- Vanadium is an emerging green energy storage mineral with the globally significant project included in the Federal Government's Critical Minerals Prospectus 2020

- Restructure of Horizon's 25% interest with JV partner Richmond Vanadium Technology (75%) to combine interests into a dedicated IPO vehicle and seek an ASX listing

- Intention to distribute up to 50% of Horizon's shares in the IPO vehicle back to Horizon shareholders and priority to invest in the IPO

- Further details on the intended IPO structure, record date for the in-specie distribution and timing will be advised early in the June Quarter 2022

Commenting on the vanadium project, Horizon Managing Director Mr Jon Price said:

"With sustained increases in vanadium prices, declining supply, increasing demand in grid scale energy storage markets and strong government focus on critical minerals, it couldn't be a better time to be advancing this world class project. It's also a great time to be a Horizon shareholder with our intention to distribute shares back to our supporters and give them a priority offering in the IPO to enable greater exposure to this exciting new energy metal market evolving in Australia."

About Horizon Minerals Limited:

Horizon Minerals Ltd. (ASX:HRZ) is a gold exploration and mining company focussed on the Kalgoorlie and Menzies areas of Western Australia which are host to some of Australia's richest gold deposits. The Company is developing a mining pipeline of projects to generate cash and self-fund aggressive exploration, mine developments and further acquisitions. The Teal gold mine has been recently completed.

Horizon is aiming to significantly grow its JORC-Compliant Mineral Resources, complete definitive feasibility studies on core high grade open cut and underground projects and build a sustainable development pipeline.

Horizon has a number of joint ventures in place across multiple commodities and regions of Australia providing exposure to Vanadium, Copper, PGE's, Gold and Nickel/Cobalt. Our quality joint venture partners are earning in to our project areas by spending over $20 million over 5 years enabling focus on the gold business while maintaining upside leverage.

• [Editor:tianyawei]