LONDON, Sept. 14, 2015 /CNW/ - Horizonte Minerals Plc,
(AIM: HZM, TSX: HZM) ('Horizonte' or 'the Company') the nickel
development company focused in Brazil, is pleased to announce the award of a
new 1,610 hectare concession area ('New Concession'), adjacent to
Glencore plc's advanced Vale dos Sonhos and Serra do Tapa nickel
laterite deposits. The New Concession is located
approximately 60 kilometres north of Horizonte's 100% owned
high-grade Araguaia nickel project ('Araguaia') in Para State,
north central Brazil which the
Company is developing towards production.
Highlights
- New Concession is located in a prospective and strategic
position - in line with the Company's strategy of expanding its
position in the Araguaia Nickel District
- Applications for five additional concessions to the south of
Glencore's nickel projects and two new concessions on the south
western side of the existing Horizonte Araguaia properties have
also been filed with the Mines Department – combined area under
application is 25,997 hectares
Horizonte CEO Jeremy Martin said,
"I am delighted to announce the award of this new concession area
which sees us increase our land holding in Brazil where we are developing the country's
next major nickel project. It has always been our intention
to grow our position northwards from our flagship Araguaia project
with the objective of consolidating the district. This new
area is adjacent to Glencore's advanced nickel projects which have
major resources similar to Araguaia and the area shows prospective
geology which may have the potential to host additional nickel
mineralisation. Furthermore we have a number of other new
concession applications pending with the Mines Department which we
look forward to reporting on in due course.
"Despite tough market conditions Horizonte is still active at
Araguaia. Work is on-going on the environmental and social base
line data collection at site, and we aim to finalise the test work
results from the Rotary Kiln Electric Furnace pilot plant campaign
shortly."
Further Details
The New Concession No. 850884 granted for three years, totalling
1,610 hectares is located in a prospective, strategic position
south of Serra do Tapa, south-west of the Vale dos Sonhos and
south-east of the Pau Preto nickel laterite deposits held by
Glencore. The geology of the area is characterised on its western
flank by the southern extension of the mafic igneous unit hosting
the Pau Preto nickel laterite occurrence 10 kilometres to the
north.
Horizonte Minerals currently has an additional seven concessions
under application with a total area of 29,997 hectares. Five
of these applications are in strategically important locations
south of the Glencore and Araguaia concessions. The remaining
two applications are for concessions on the south western side of
Araguaia.
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 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