TIDMHZM
RNS Number : 4297N
Horizonte Minerals PLC
09 May 2018
NEWS RELEASE
09 May 2018
HORIZONTE ANNOUNCES VERMELHO MINERAL RESOURCE CONFIRMING
SIGNIFICANT NICKEL AND COBALT INVENTORY
_____________________________________________________________________
09 May 2018 - Horizonte Minerals Plc, (AIM: HZM, TSX: HZM)
('Horizonte' or 'the Company') the nickel development company
focused in Brazil which is developing the Araguaia nickel project
as Brazil's next ferro-nickel mine, is pleased to announce an
initial NI 43-101 Mineral Resource Estimate for the recently
acquired Vermelho nickel/cobalt project.
Highlights
-- The Vermelho Nickel-Cobalt Mineral Resources, in the Measured
and Indicated category, are 167.8 million tonnes grading 1.01%
nickel and 0.06% cobalt (at 0.9% nickel equivalent cut off)
-- The Measured and Indicated mineral resources categories are
estimated to contain 1.68 million tonnes (3,700 million lbs) of
nickel and 94,000 tonnes (207 million lbs) of cobalt
-- The Mineral Resource Estimate places the Vermelho project as
one of the largest, highest grade undeveloped laterite nickel -
cobalt resources globally
-- Significant portion of high grade saprolite within the
deposit is amenable to the Rotary Kiln Electric Furnace process
route to produce ferronickel being developed at the Araguaia
project
-- Test work planned to confirm the Vermelho mineralisation is
suitable to produce nickel and cobalt sulphate for the EV battery
Market
Horizonte's CEO Jeremy Martin said, "This NI 43-101 Mineral
Resource covering the Vermelho nickel-cobalt project is an exciting
development for the Company. The resource is high grade, at around
1.34% NiEq% and places the project on the upper end of the global
grade curve as well as being scalable, adding over 1.6 million
tonnes of contained nickel and over 90,000 tonnes of contained
cobalt to the Company's substantial global metal inventory.
The next phase of work at Vermelho will focus on advancing the
work that Vale completed as part of their Feasibility Study, taking
the mixed hydroxide product (MHP) and upgrading to nickel and
cobalt sulphate suitable for use in the evolving EV battery market.
The acquisition of the Vermelho nickel - cobalt project means that
Horizonte now has the potential to supply both high grade
ferro-nickel from the Araguaia project to the stainless steel
market and nickel/cobalt products from Vermelho that can be used in
both the EV battery market or the metals space as we work towards
becoming a leading nickel development company.
The current focus at the Araguaia ferro-nickel project is the
completion of the Feasibility Study and the work related to the
award of the construction licence. We look forward to keeping the
market updated as we advance both projects against a backdrop of
strengthening nickel and cobalt prices, where recent nickel prices
have been in the US$ 6-7/lb range and cobalt prices continue to
trade above US$40/lb, driven by a combination of growing demand, as
highlighted by recent Chinese EV numbers and concern around cobalt
supply restrictions in the DRC"
Further details
Horizonte's 100% owned Vermelho Nickel-Cobalt project was
acquired from Vale in late 2017, it is located in the eastern part
of the Carajas mining district and approximately 80 kilometres
north west of the Company's Araguaia North ferro-nickel
project.
At a 0.90% nickel-equivalent cut-off grade the estimated
Nickel-Cobalt mineral resources in the Vermelho ('V1') and Vermelho
('V2') deposits are presented in Table 1. The Mineral Resource is
reported by a series of nickel equivalent cut-offs in 2018 from
Gemcom mining software. The basis of the nickel equivalent
calculation is the equation NiEq% = Ni% + (6 x Co%), based upon the
relative average cash prices for nickel and cobalt metals, as
reported on the London Metal Exchange for the six-month period
2(nd) November 2017 to 3(rd) April 2018. The nickel equivalent
calculation assumes similar nickel and cobalt recoveries as
obtained by the test work carried out by Vale in the Feasibility
Study.
Mr. Andrew F. Ross MSc, FAusIMM, an Independent Qualified Person
as defined in National Instrument 43-101 - Standards of Disclosure
for Mineral Projects ('NI 43-101') employed by Snowden Mining
Industry Consultants, has completed a review of this Mineral
Resource Estimate and has recommended to Horizonte that this
Mineral Resource Estimate is suitable for reporting by Horizonte as
the current Mineral Resource Estimate. These Mineral Resources were
reported to Horizonte as current Mineral Resource Estimates, after
Snowden reviewed the historic mineral resource estimates described
in the NI 43-101 Technical Report dated 1(st) February 2018. The
mineral resource categories (Measured, Indicated, Inferred) conform
to the requirements of the JORC Code (2012) which is a permitted
reporting code under NI 43-101.
A total of 77,575 metres (1,383 holes) from V1 and 51,165 metres
(877 holes) from V2 were used in the evaluation of the deposits and
Mineral Resource Estimates reported in the Vermelho Feasibility
Study.
Table 1 Combined Classified Mineral Resource Report for Vermelho
by Nickel Equivalent cut-offs
Cut-off NiEq% Million NiEq% Ni % Ni metal Co % Co metal Fe(2) O(3) % SiO(2) % MgO %
Tonnes ktonnes ktonnes
-------------- -------------- ------ ----- -------------- ----- -------------- ------------- --------- ------
Measured
0.8 185.4 1.28 0.96 1,781 0.05 99 31.53 43.14 9.58
0.9 161.4 1.34 1.01 1,629 0.06 90 31.46 42.58 9.95
1.0 138.5 1.41 1.06 1,469 0.06 81 31.42 42.05 10.24
1.2 92.7 1.56 1.19 1,098 0.06 59 31.33 40.86 10.92
-------------- -------------- ------ ----- -------------- ----- -------------- ------------- --------- ------
Indicated
0.8 7.7 1.22 0.88 68 0.06 4 27.15 50.56 7.21
0.9 6.4 1.29 0.93 59 0.06 4 27.52 50.32 6.85
1.0 5.2 1.37 0.99 51 0.06 3 27.91 49.89 6.61
1.2 3.3 1.54 1.11 36 0.07 2 28.06 49.04 6.73
-------------- -------------- ------ ----- -------------- ----- -------------- ------------- --------- ------
Measured and Indicated
0.8 193.1 1.28 0.96 1,848 0.05 103 31.36 43.43 9.49
0.9 167.8 1.34 1.01 1,688 0.06 94 31.31 42.87 9.83
1.0 143.7 1.41 1.06 1,520 0.06 84 31.29 42.33 10.11
1.2 96.0 1.56 1.18 1,135 0.06 61 31.22 41.14 10.77
-------------- -------------- ------ ----- -------------- ----- -------------- ------------- --------- ------
Inferred
0.8 3.8 1.13 0.87 33 0.04 2 24.23 41.75 15.27
0.9 2.8 1.23 0.94 27 0.05 1 25.86 41.83 13.47
1.0 2.1 1.33 1.01 21 0.05 1 27.25 41.84 11.92
1.2 1.2 1.51 1.13 13 0.06 1 28.65 41.49 10.66
-------------- -------------- ------ ----- -------------- ----- -------------- ------------- --------- ------
Note: Totals may not add due to rounding. Mineral resources
which are not mineral reserves do
not have demonstrated economic viability. The estimate of
mineral resources may be materially
affected by environmental, permitting, legal, title, taxation,
sociopolitical, marketing, or other
relevant issues. The quantity and grade of reported Inferred
resources in this estimation are
uncertain in nature and there has been insufficient exploration
to define these Inferred resources
as an Indicated or Measured mineral resource and it is uncertain
if further exploration will result
in upgrading them to the Indicated or Measured mineral resource
category.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
* *S * *
For further information visit www.horizonteminerals.com or
contact:
Horizonte Minerals
plc
Jeremy Martin (CEO) +44 (0) 20
/ David Hall (Chairman) 7763 7157
finnCap Ltd (NOMAD
& Joint Broker)
Christopher Raggett/
James Thompson / Emily +44 (0) 20
Morris 7220 0500
Numis Securities Ltd
(Joint Broker)
+44 (0) 207
John Prior / Paul Gillam 260 1000
Shard Capital (Joint
Broker)
Damon Heath / Erik +44 (0) 20
Woolgar 7186 9952
Tavistock (Financial
PR)
Jos Simson / Barney +44 (0) 20
Hayward 7920 3150
About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed nickel
development focused in Brazil. The Company is developing the
Araguaia Project as the next major ferro-nickel mine in Brazil.
With the Vermelho nickel-cobalt project being advanced with the aim
of being able to supply nickel and cobalt to the EV battery market.
Both projects are 100% owned.
Horizonte shareholders include; Teck Resources Limited,
Canaccord Genuity Group, JP Morgan, Lombard Odier Asset Management
(Europe) Limited, City Financial, Richard Griffiths and
Glencore.
In accordance with the AIM Note for Mining and Oil and Gas
Companies, Horizonte discloses that Mr. Andrew F. Ross, an employee
of Snowden, is the qualified person that has reviewed the technical
information contained in this announcement. Mr. Ross MSc, FAusIMM
and is a Fellow of the Australasian Institute of Mining and
Metallurgy. Mr. Ross consents to the inclusion of the information
in this announcement in the form and context in which it
appears.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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