LONDON, Feb. 2, 2015 /CNW/ - Horizonte Minerals
Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or 'the Company')
the nickel development company focused in Brazil, is pleased to announce a positive
outcome from its Public Hearing held on the 30 January 2015 for its 100% owned Araguaia
nickel project ('Araguaia') in Para State, north central
Brazil.
Highlights
- Public Hearing meeting attended by +1,000 people with positive
support from local community and government authorities for the
extraction and processing of nickel at Araguaia
- Social and Environmental Impact Assessment ('SEIA') presented
to attendees in partnership with the Department of Environment and
Sustainability (SEMAS) following delivery of the SEIA to Brazilian
authorities in Q3 2014
- Progressive socio-economic development programmes outlined for
local region aimed to bring net positive benefits for local
stakeholders
Horizonte CEO Jeremy Martin said,
"The positive outcome at the Public Hearing is a major milestone
towards receiving our Preliminary Licence (LP) and the culmination
of the past 18 month's social and environmental work. We were
pleased by the high turnout at the meeting and the overriding
support at the local and state level is a key factor for the future
success of Araguaia. We are now in a strong position to
advance Araguaia through the feasibility stage in 2015 and are
committed to sustainability and ensuring that our local
stakeholders will share in the benefits of bringing this project to
production."
Further Information
The Public Hearing was held on 30 January
2015 in the town of Conceição do Araguaia where the
Company has its operational base, which is approximately 35
kilometres from the Project. The meeting was well attended
with over 1,000 participants from the local community along with a
number of Senior State level officials. These included the
Vice-Governor of the Pará State, José da Cruz Marinho, the Environment and Sustainability
Minister of the Pará State, Luiz Fernandes
Rocha, and the Mayor of Conceição do Araguaia,
Valter Rodrigues Peixoto, amongst
others.
The Public Hearing is a key part of the Brazilian environmental
license process, necessary to obtain the Preliminary License
(LP). The aim of the event was to inform, clarify and
encourage further community participation in project planning for
the Municipal of Conceição do Araguaia where mining and
mineral processing will occur.
The Araguaia Project is planned as a long life operation
creating approximately 450 direct jobs in the operational phase of
the mine. The Company seeks to be a partner-of-choice with
the local community in the development of the Project to ensure
long-term sustainable benefits are received by local stakeholders.
Key socio-economic programmes planned for the region include
initiatives for public health, environmental education, local
government capacity building and economic development. The
economic development programme will focus on maximising local
employment as well as the development of local suppliers and small
regional enterprises.
As part of the permitting process, the Company has consulted
with a large portion of the local community and other stakeholders
in the past three months to ensure the Araguaia Project will have a
net positive impact on the local communities delivering sustainable
value over the long term. Engagement and consultation was
undertaken with local community leaders, elected local government
ministers and elected state government ministers amongst other
stakeholders to develop positive relationships with Horizonte as
the Project progresses to the feasibility stage.
The Social and Environmental Impact Assessment of the area aims
to identify, predict, interpret and inform society of the potential
effects of activities on the health and well-being of the
population as well as on ecosystems, so that the results are
presented adequately to the public and environmental authorities,
and then duly considered. To assess these impacts, Horizonte,
in partnership with specialist environment and social consultants
undertook environmental and social baseline data collections.
The environmental baseline programme included information on
climate, particulate matter, groundwater composition and depth,
soils, surface water composition and flow, spring locations, and
fauna and flora. The social baseline data collection
programme included information on regional demographics,
stakeholders, livelihoods, community infrastructure, cultural
heritage, natural resource use, labour and working conditions,
vulnerable groups, land rights, regional medical and emergency
services, public safety, traffic volume and archaeological
sites.
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