I should have consulted with Jason Paul Sailer, who occasionally contributes to this site, since he knows a fair amount about southern Alberta and southern Saskatchewan history. He was kind enough to message me the following:
"The separate church and cemetery down the road from the church on the corner was when the original church congregation split. A rift in the congregation in 1921 caused it to split, a large element of Russian / German descent settlers called ‘Kongregesers’ left and formed a new church half a mile west of the Zion church and was called the Evangelical United Church. The minority of the original congregation (the Brueder’s) remained in charge of the original church and cemetery. Horsham had a fair bit of stuff, but the town disappeared when the railway left and the grain elevators closed. The last bits were cleaned up in the 1980's/early 1990's."