Horizonte Minerals plc / Index: AIM and TSX /
Epic: HZM / Sector: Mining
LONDON, Nov. 6, 2014 /CNW/ - Horizonte Minerals
Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or 'the Company')
the nickel development company focused in Brazil, is pleased to announce that it has
awarded a contract for an additional 13,500m (Phase 4
Programme) of HQ3 diamond drilling to support a Feasibility Study
('FS') on its 100%-owned Araguaia Nickel Project ('Araguaia' or
'the Project') located south of the Carajas mining district in Pará
State, northern Brazil.
Horizonte Minerals' CEO Jeremy
Martin said, "We are pleased to announce the start of this
seven rig diamond drilling programme at Araguaia, this work is a
key component of the forthcoming Feasibility Study. The drill
programme has a number of objectives: to upgrade a portion of the
current Indicated Mineral Resources over the core mining areas to
the Measured category; to complete a number of additional
geotechnical holes across the proposed open pit sites, the proposed
process plant site and slag dump; to confirm overall ground
conditions across these areas; and finally, close spaced drilling
of four bulk sample collection sites to confirm grade continuity
within the bulk sample. The bulk sample will be collected early in
Q1 2015 and will be used to feed a continuous large scale pilot
plant campaign scheduled to commence late Q1, the results of which
will assist in finalising the engineering design of the
furnace.
"We are also currently evaluating proposals received from
several major consulting groups with regards to selecting and
awarding the Feasibility Study contract in Q4 2014. We look forward
to updating shareholders with progress over the coming months as we
look to develop Brazil's next
major nickel project, at a time when nickel market fundamentals and
consensus price forecasts are positive moving into 2015."
Further Information
Araguaia 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 the resource is a
Probable Mineral Reserve of 21.2Mt at 1.66%Ni..
The drilling contract has been awarded to SERVITEC (Servitec
Foraco Sondagem SA.) for an additional 13,500m drilling
programme. Servitec has provided seven drill rigs for the
programme which will extend over five months to be completed by the
end of March 2015. The
programme consists of three parts:
- Infill Mineral Resource Drilling: Comprising 12,000m
over 400 holes this drilling will infill, on 50m x 50m grids,
selected parts of the Pequizeiro, Baião, Jacutinga and Vila Oito
deposits with the objective of converting the current Indicated
Mineral Resources in these areas to the Measured category.
These Measured Mineral Resources should convert to Mineral Reserves
to support a Feasibility Study to commence in Q1 2015. The areas
selected for this drilling contain the mining panels outlined in
the Prefeasibility Study ('PFS'), completed in March 2014, that provide the scheduled ore feed
to the plant for the first eight years of production.
- Additional Geotechnical Drilling: 20 geotechnical holes
comprising 596 meters were completed to support the PFS. An
additional 500 meters of geotechnical drilling within the proposed
pits and on the plant and slag dump sites is planned to support the
Feasibility Study.
- Testing of Selected Bulk Sample Sites: Preparations are
in hand to collect a 200 tonne (dry) bulk sample to provide feed
for continuous RKEF pilot plant metallurgical testwork planned for
Q1 2015. Drilling of 1,000 meters of core to verify the
suitability of the selected sites prior to bulk sampling is
included in this drilling programme.
Araguaia Nickel Project
Horizonte Minerals recently announced the results of a
Pre-Feasibility study ('PFS') at its flagship Araguaia Nickel
Project in Brazil (see press
release 25 March 2014), which
demonstrates the robust economics of the project which is being
developed as the next major nickel project in Brazil. The project is now moving forward to
the Feasibility Study ('FS') stage. Selection of qualified
consultants is currently underway with the study due to start in Q1
2015 and conclude around Q3 2015.
Production, which is targeted for 2017, is initially targeting
15,000tpa nickel with a 20% Ferro
Nickel product over a 25 year mine life utilising the
proven pyrometallurgical process of Rotary Kiln Electric Furnace
('RKEF') technology. At these production rates, the project
has a Net Present Value of US$519
million and an Internal Rate of Return of 20%, with a
capital cost of US$582 million, which
puts this project in the lowest quartile of the cost
curve.
The strong project economics of Araguaia are also supported by
the high nickel grades, with an average feed grade for the first 10
years of 1.76% Ni, placing the deposit in the upper quartile for
grade globally. Furthermore Araguaia is located in a world
class mining region with pre-existing infrastructure in place
including rail, road, water and power.
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 Project is located in a region with good infrastructure
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's shareholder structure includes Teck Resources
Limited (38.3%) and Henderson Global Investors (14.1%).
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