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.
- 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."
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
For further information: visit www.horizonteminerals.com or contact: Jeremy Martin, Horizonte Minerals plc, Tel: +44 (0) 20 7763 7157; David Hall, Horizonte Minerals plc, Tel: +44 (0) 20 7763 7157; Joanna Weaving, finnCap Ltd (Corporate Broking), Tel: +44 (0) 20 7220 0500; Christopher Raggett, finnCap Ltd (Corporate Finance), Tel: +44 (0) 20 7220 0500; Felicity Winkles, St Brides Partners Ltd (PR), Tel: +44 (0) 20 7236 1177; Lottie Brocklehurst, St Brides Partners Ltd, Tel: +44 (0) 20 7236 1177