Priority Approval for Araguaia Nickel Brazil

RNS Number : 4271K

Horizonte Minerals PLC

25 June 2014

 



Horizonte Minerals plc / Index: AIM and TSX / Epic: HZM / Sector: Mining

NEWS RELEASE

25 June 2014

Receives Priority Approval from the state of Para´s Department of Industry, Commerce and Mining (SEICOM) for the Araguaia Nickel Project, Brazil  

25 June 2014- Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or 'the Company'), the nickel development company focused in Brazil, is pleased to announce that its wholly owned subsidiary Araguaia Niquel Mineração has received the Seal of Priority ('The Seal') from the state of Para´s Department of Industry, Commerce and Mining (SEICOM) to help fast-track the development of its Araguaia Nickel Project ('Araguaia' or 'the Project') located in Parà State, south of the Carajas mining district in northern Brazil.  Horizonte is the first mineral resource company to become a member of the state's incentive plan.

The Seal is a key component of the Brazilian state of Parà´s "Plan for Attracting New Business" ('PANN'), a law introduced (Decree 913) to accelerate the development of projects deemed to be of strategic importance for economic and social development of Para.  This is a significant development for Horizonte as Decree 913 confers special status to Araguaia, whereby the Project will receive priority treatment from the various regulatory, environmental and administrative organisations with which it will interact along its development path. The Seal has been granted to Araguaia as it meets various criteria laid out in Decree 913, including its location in a municipality prioritised for economic development and the value-added processing that would take place on the site with the production of ferronickel.

Horizonte Minerals' CEO Jeremy Martin said, "Following swiftly on from our completion and filing of the SEIA for Araguaia we are delighted to be the first mineral resource company to receive the priority approval from Brazil's Parà State.  This will ensure that the Project receives fast track prioritised status with the main permitting authorities and that we receive direct support from the Parà State government as we develop Araguaia.   I look forward to providing further updates in due course."

Araguaia Nickel Project

Horizonte Minerals recently announced the results of a Pre-Feasibility study ('PFS') at its flagship Araguaia Nickel Project in Brazil (see press release 25 March 2014), which demonstrates the robust economics of the project, which is being advanced towards the Feasibility Stage in H2 2014.

Production, which is targeted for 2017, is initially planned to be 15,000tpa nickel with a 20% ferronickel product over a 25 year mine life utilising the proven pyrometallurgical process of Rotary Kiln Electric Furnace ('RKEF') technology.  At these production rates, the project has a Net Present Value of US$519 million and an Internal Rate of Return of 20%, with a capital cost of US$582 million, which puts this project in the lowest quartile of the cost curve. 

The strong project economics of Araguaia are also supported by the high nickel grades, with an average feed grade for the first 10 years of 1.76% Ni, placing the deposit in the upper quartile for grade globally.  Furthermore Araguaia is located in the world class mining region with pre-existing infrastructure in place including rail, road, water and power.

**ENDS**

For further information visit www.horizonteminerals.com or contact:

Jeremy Martin	Horizonte Minerals plc	Tel: [phone]
David Hall	Horizonte Minerals plc	Tel: [phone]
Joanna Weaving Matthew Robinson Ben Thompson	finnCap Ltd (Corporate Broking) finnCap Ltd (Corporate Finance) finnCap Ltd (Corporate Finance)	Tel: [phone] Tel: [phone] Tel: [phone]
Felicity Edwards Lottie Brocklehurst	St Brides Media & Finance Ltd (PR) St Brides Media & Finance Ltd	Tel: [phone] Tel: [phone]

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 towards the Feasibility Stage in H2 2014.

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); included in Resources is a Probable Reserve base of 21.2Mt at 1.66%Ni at a 0.95% nickel cut-off.

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 42.5%, Henderson Global Investors 15.1%, Anglo Pacific Group 9.2%.

 

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.

 

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