LONDON, Jan. 26, 2015 /CNW/ - Horizonte Minerals
Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or 'the Company')
the nickel development company focused in Brazil, is pleased to announce new high grade
drill intersections from recent bulk sampling drilling and provide
an update on the ongoing work related to the Feasibility Study at
its 100% owned Araguaia nickel project ('Araguaia') in Para State,
north central Brazil.
Highlights
- High grade nickel assay intersections received to date for the
first 15 holes from the bulk sample drilling include (all
results in table 1):
- 12.47 meters grading 2.17% Ni
- 12.45 meters grading 2.13%
Ni
- 13.35 meters grading 2.07% Ni
- 13.95 meters grading 1.99% Ni
- Drill programme on schedule with 113 diamond holes drilled
(2,188 meters) completed.
- Further infill drilling results due from the Pequizeiro Deposit
where drilling is currently underway
- Significant progress made on the Environmental and Social work
for Araguaia – Public Hearing process for the preliminary
environmental licence is imminent
- On track to commence bulk sampling collection early
February 2015 with a 200 tonne bulk
sample to be used to feed a continuous large scale pilot plant in
Q2 2015 with initial dryer/agglomerator commissioning and trials
commencing by the end of January
2015
Horizonte CEO Jeremy Martin said,
"We are making good progress on the Feasibility work at Araguaia
with the drilling and collection of the 200 tonne bulk sample
running to schedule. The drill results received from the bulk
sample sites confirm the high nickel grades that are scheduled for
the early part of Araguaia's mine life. The next major step
will be the running of the pilot programme with the aim of
confirming the detailed design parameters around the Rotary Kiln
Electric Arc Furnace process and the production of nickel.
"Despite the current challenging market conditions, the Company
is on track to deliver the planned milestones during 2015; we have
a solid funding position; and the ongoing results from Araguaia
continue to deliver. The fundamentals behind the nickel
markets over the next 24 to 36 months from consensus forecasts are
positive. This combined with the use of a proven processing route
(RKEF) to produce ferronickel and Araguaia's favourable mining
jurisdiction make a strong investment case for our flagship
development project. I look forward to providing further
updates throughout the year as we move Araguaia through the
Feasibility process."
Further Details
Drilling
The drilling programme which will support and form part of the
Feasibility Study on Araguaia started in November 2014 and is progressing well.
Seven drill rigs are currently employed on this programme and
113 HQ3 diamond holes comprising 2,188 metres have been completed
to date. The programme consists of three parts:
1) Testing of Selected Bulk Sample Sites: Drilling
is complete for a total of 64 holes and 944 metres, and partial
results have been received and are presented in Table 1 below.
Drilling was completed on 4 meter grids over four selected
sites.
2) Infill Mineral Resource Drilling: Infill
drilling on 50m x 50m grids is planned on selected parts of the
Pequizeiro, Baião, Jacutinga and Vila Oito deposits. To date
49 holes totalling 1,244 metres have been completed on the
Pequizeiro deposit the results of which are awaited.
3) Additional Geotechnical and Hydrogeological Drilling:
This drilling work will be undertaken in March 2015.
Table 1. Bulk
Sample Site Test Drilling
|
|
4m x 4m
Drilling
|
|
Intercepts ≥1% Ni
cut-off
|
|
Holes PCA-DD-1421B
to PCA-DD-1435B
|
|
Hole
|
From
(m)
|
To
(m)
|
Width
(m)
|
Ni
%
|
|
|
PCA-DD-1421B
|
1.65
|
15
|
13.35
|
2.07
|
|
PCA-DD-1422B
|
NSI
|
|
PCA-DD-1423B
|
1.2
|
13.65
|
12.45
|
2.13
|
|
PCA-DD-1424B
|
8.38
|
15
|
6.62
|
1.25
|
|
PCA-DD-1425B
|
1.04
|
9.32
|
8.28
|
1.39
|
|
PCA-DD-1426B
|
3.3
|
15
|
11.7
|
1.31
|
|
PCA-DD-1427B
|
1.06
|
15.01
|
13.95
|
1.45
|
|
PCA-DD-1428B
|
0.86
|
15.02
|
14.16
|
1.5
|
|
PCA-DD-1429B
|
2.44
|
16.09
|
13.65
|
1.15
|
|
PCA-DD-1430B
|
NSI
|
|
PCA-DD-1431B
|
1.2
|
15.15
|
13.95
|
1.99
|
|
PCA-DD-1432B
|
3.45
|
8.43
|
4.98
|
1.09
|
|
PCA-DD-1433B
|
1.34
|
13.66
|
12.32
|
1.49
|
|
PCA-DD-1434B
|
11.25
|
13.77
|
2.52
|
1.03
|
|
PCA_DD_1435B
|
2.53
|
15
|
12.47
|
2.17
|
|
NSI: No significant intersection
The compositing of the nickel grades in the individual holes was
completed across geological boundaries using a nickel cut-off of 1%
with a minimum intercept length of 2.0 metres and a maximum length
of internal waste of 2 metres. All holes were vertical and,
as these nickel laterite deposits are essentially flat-lying, all
widths given are true widths. Core recoveries in the
mineralised sections met the appropriate standards for this style
of mineralisation and were generally >90%.
Sample preparation and analyses
Samples from drill core were crushed and pulverised at the ALS
laboratory in Goiania and the resultant pulps analysed at the ALS
laboratory in Lima, Peru using
tetraborate fusion and X-Ray Fluorescence ('XRF'). Full QA/QC
procedures were followed, including the insertion of standards,
duplicates and blanks. Check samples representing
approximately 5% of all the samples will be sent to another
international laboratory for analysis by XRF.
Bulk Sampling
Preparations are at an advanced stage for the collection of a
200 tonne bulk sample to provide feed for RKEF pilot plant
metallurgical testwork planned for Q2 2015. The results of
the pre-sample collection drilling described above will be used for
the precise siting of the wide diameter auger holes to be used for
the sample collection. The wide diameter auger drilling is
scheduled to commence in February
2015.
Pilot Plant RKEF Metallurgical Testwork
In preparation for the pilot plant testwork scheduled for Q2
2015 at the IGEO testwork facility at Morro Azul, Minas Gerais
State, initial dryer/agglomerator commissioning and trials are
scheduled to commence by the end of January
2015. A 20 tonne sample for this commissioning has
been selected from a previously collected (September 2011) bulk sample and despatched to the
testwork site.
Environmental and Social Permitting
The Environmental and Social Impact Assessment was finalised and
the report was submitted to Brazilian State licencing authority
(SEMA) in Q3 2014 for Araguaia's preliminary licence
evaluation. The next stage is the Public Hearing which is scheduled
to take place in Q1 2015.
As part of the permitting process, the Company has consulted
with a large portion of the local community and other stakeholders
in the last 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 study stage.
The Company continues to value the environment, through
rehabilitation programmes of drill sites, ad-hoc environmental
education with community neighbours, responsible use of water and
its recycling programme.
Horizonte Minerals prepared this news release and David Hall BSc, MSc, Fellow SEG PGeo. a director
of the Company and Qualified Person under National Instrument
43-101, reviewed and approved the drillhole technical
information.
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