LONDON, April 1, 2015 /CNW/ - Horizonte Minerals
Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or 'the Company') the
nickel development company focused in Brazil, held its Annual General Meeting
('AGM') yesterday and all resolutions were passed.
At the AGM CEO Jeremy Martin made
the following statement, "In the last 12 months we have delivered a
number of key milestones on our Araguaia project as we work towards
developing the next major nickel project in
Brazil.
"In 2014 we delivered the Pre-Feasibility Study for Araguaia
with the Base Case offering an after tax NPV₈ of US$519 million and an IRR of 20%. Notably,
the high grade resource is suitable for the Rotary Kiln Electric
Furnace ("RKEF") process, a proven nickel laterite processing
technology utilised over the last 60 years with 20 plants
operational today. The first phase RKEF pilot test work was
positive, with the Araguaia ore performing well with low dust
levels and optimum particle size. This will be followed by
the full scale continuous pilot, to be run in late April 2015 with the aim of producing ferronickel
to commercial specification on a continual basis.
"The last quarter has seen a number of deliverables on the
environmental and social side of the project. The SEIA report
has been filed with the Pará State Environmental Agency to comply
with the Brazilian Environmental laws. This was followed, a
successful public hearing in January was attended by over 1,000
people from the local community and government authorities, a key
milestone for achieving a Preliminary Licence for Araguaia.
We expect to receive full SEIA approval in Q3 2015.
"With the current difficult market climate, the past year has
been challenging for Horizonte and indeed the mining sector as a
whole. With this in mind the Company has a solid cash
position to continue delivering at the project level, however
management are actively reducing costs across the Company and
indeed evaluating capital reduction options of Araguaia. Work
is currently focussed on completing all activity streams that will
flow into the Feasibility Study, with the overall timings linked to
the wider commodity market conditions.
"The Company to date has a strong track record of delivering
milestones on time and on budget. Although the current nickel
prices are depressed, the mid-term nickel market fundamentals are
good with a predicted supply deficit forecast which is aligned with
the development timeline for Araguaia. The Company is led by
an experienced Board who have worked through previous mining
cycles, with the ability to take Araguaia through to production.
We believe we are well placed to deliver significant value to
shareholders over the next 24 to 36 months."
About Horizonte Minerals:
Horizonte Minerals plc is an
AIM and TSX-listed nickel development company focused in
Brazil, which wholly owns the
advanced Araguaia nickel laterite project located to the south of
the Carajas mineral district of northern Brazil.
The Company is developing Araguaia as the next major nickel mine
in Brazil, with targeted
production by late 2017 or early 2018.
The Project, which has excellent infrastructure in place
including rail, road, water and power, has a current NI 43-101
compliant Mineral Resource of 71.98Mt grading 1.33% Ni (Indicated)
and 25.4Mt at 1.21% Ni (Inferred) at a 0.95% nickel cut-off;
included in Resources is a Probable Reserve base of 21.2Mt at
1.66%Ni.
A Pre-Feasibility Study has been completed which underpins the
robust economics of developing a mine with a targeted 15,000tpa
nickel in ferro-nickel output with a 20% Fe-Ni product over a 25
year mine life utilising the proven pyrometallurgical process of
Rotary Kiln Electric Furnace technology. At these production
rates, the project has a post-tax NPV of US$519m at a discount rate of 8% and an IRR of
20%, with a capital cost of US$582m
which puts this project in the lowest quartile of the cost
curve.
Horizonte has a strong shareholder structure including Teck
Resources Limited 38.5%, Henderson Global Investors 14%, Anglo
Pacific Group 7%.
CAUTIONARY STATEMENT REGARDING FORWARD
LOOKING INFORMATION
Except for statements of historical fact relating to the
Company, certain information contained in this press release
constitutes "forward-looking information" under Canadian securities
legislation. Forward-looking information includes, but is not
limited to, statements with respect to the potential of the
Company's current or future property mineral projects; the success
of exploration and mining activities; cost and timing of future
exploration, production and development; the estimation of mineral
resources and reserves and the ability of the Company to achieve
its goals in respect of growing its mineral resources; and the
realization of mineral resource and reserve estimates. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will be taken", "occur" or "be achieved".
Forward-looking information is based on the reasonable assumptions,
estimates, analysis and opinions of management made in light of its
experience and its perception of trends, current conditions and
expected developments, as well as other factors that management
believes to be relevant and reasonable in the circumstances at the
date that such statements are made, and are inherently subject to
known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including
but not limited to risks related to: exploration and mining risks,
competition from competitors with greater capital; the Company's
lack of experience with respect to development-stage mining
operations; fluctuations in metal prices; uninsured risks;
environmental and other regulatory requirements; exploration,
mining and other licences; the Company's future payment
obligations; potential disputes with respect to the Company's title
to, and the area of, its mining concessions; the Company's
dependence on its ability to obtain sufficient financing in the
future; the Company's dependence on its relationships with third
parties; the Company's joint ventures; the potential of currency
fluctuations and political or economic instability in
countries in which the Company operates; currency exchange
fluctuations; the Company's ability to manage its growth
effectively; the trading market for the ordinary shares of the
Company; uncertainty with respect to the Company's plans to
continue to develop its operations and new projects; the Company's
dependence on key personnel; possible conflicts of interest of
directors and officers of the Company, and various risks associated
with the legal and regulatory framework within which the Company
operates.
Although management of the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements.
SOURCE Horizonte Minerals plc