Lontra Nickel Project Update

RNS Number : 1059D

Horizonte Minerals PLC

26 November 2009

 



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

26 November 2009

Horizonte Minerals plc ('Horizonte' or 'the Company')

Lontra Project Update and Positive Metallurgical Test Results 

Horizonte, the AIM quoted exploration and development company focused on Brazil and Peru, is pleased to announce positive metallurgical results from the laterite nickel discovery at its Lontra Project in the Carajas Mineral Province of Northern Brazil. 

Overview: 

• Bottle role leach results at Lontra indicate suitability for low cost heap leach process

• Significant nickel and cobalt recovery with low acid consumption in the limonite zone

• Nickel recovery averaged 92% and cobalt 82% in the transition and silicate zones

• Soil geochemical sampling completed to define additional targets

• Drilling planned for Q1 2010 to define JORC compliant resource

Horizonte Chief Executive Jeremy Martin said, "These results indicate that the mineralogy of the Lontra deposit is amenable to tank or heap leaching at atmospheric pressure, with very good recoveries being obtained from the transition and silicate zones of mineralisation. Either of these technologies can be implemented at relatively low capital cost when compared to a pyrometallurgical route.

"Furthermore the results justify advancing the project to a resource definition drilling programme on the Northern and Raimundo targets initially tested in the first phase programme, as well as exploration drilling on the targets in the south and un-tested targets in the north. In addition the Company has recently completed a series of soil grids over a number of target areas, if these produce positive results it will potentially increase the overall tonnage potential of the Lontra Project."

Background to the Lontra Project

The Lontra Project is a greenfields discovery by Horizonte, situated in the Araguaia mobile belt, which flanks the eastern margin of the Carajas Mineral Province of northern Brazil. The project is located 80km south of the major lateritic nickel project operated by Xstrata plc at Serra da Tapa and Vale dos Sonhos (inferred resource of 73Mt at 1.5% Ni). It is also 7km northwest of the adjoining Vila Oito nickel project, where scoping studies have been carried out by Teck Resources Limited. 

To date Horizonte has drilled 63 shallow diamond holes over an area of approximately 5km2. Due to the large size of the targets (approximately 1.5km2) this drilling is not yet of a sufficient density to be able to classify the mineralisation intersected into a resource category. 

Metallurgic Samples

As a result of the positive first pass drilling results Horizonte prepared six samples from combined intervals of the diamond drill core samples for preliminary metallurgical bottle role leach tests. The samples were selected to represent the different mineralisation types mapped. The samples were processed and analyses carried out at the RPC - Process and Environmental Technology Laboratory in New Brunswick, Canada. The geochemical characteristics of the metallurgical samples are produced below.

HOLE ID.	CODE	SAMPLE	FROM	TO	Ni	NiO	Co	Cu	Fe2O3	MgO	SiO2	Cr2O3	MnO	Geoch
LON_DDH007	01	DH_2648	8	8.7	1.78	2.26	0.097	0.23	61.2	2.27	11	0.34	0.67	Limonite - Fe
LON_DDH007		DH_2649	8.7	9.45	2.06	2.62	0.088	0.3	55.9	4.69	13.8	0.31	0.63	Limonite - Fe
LON_DDH007	02	DH_2650	9.45	10.5	2.01	2.55	0.07	0.3	38.9	14.6	23.9	0.18	0.42	Transition
LON_DDH007		DH_2652	10.45	11.5	1.68	2.14	0.067	0.03	31.7	19.1	27.7	0.14	0.35	Transition
LON_DDH007		DH_2653	11.45	12.5	1.70	2.16	0.071	0.017	30.7	21.3	29.3	0.17	0.35	Transition
LON_DDH007	03	DH_2654	12.45	13.5	1.64	2.09	0.071	0.014	26.3	23	31.4	0.17	0.32	Silicate
LON_DDH007		DH_2655	13.45	14.5	1.69	2.15	0.065	0.026	26	23.5	32.3	0.18	0.28	Silicate
LON_DDH013	01	DH_2762	6.7	7.7	1.59	2.02	0.14	0.14	38.8	3.72	17.5	0.31	0.48	Limonite
LON_DDH013		DH_2763	7.7	8.7	1.48	1.88	0.12	0.07	36.7	5.97	19.3	0.29	0.42	Limonite
LON_DDH026	01	DH_3079	7.20	8.20	1.68	2.13	0.066	0.057	33.8	19.7	27.2	0.25	0.35	Transition
LON_DDH026		DH_3080	8.20	9.10	1.23	1.56	0.046	< 0.01	29.8	21.1	31.2	0.19	0.34	Transition
LON_DDH026		DH_3081	9.10	10.00	1.70	2.16	0.058	< 0.01	31.8	18.8	27.8	0.28	0.33	Transition
LON_DDH026	02	DH_3082	10.00	10.90	1.76	2.24	0.056	< 0.01	28	21.6	30	0.22	0.3	Silicate
LON_DDH026		DH_3083	10.90	11.80	1.74	2.21	0.049	< 0.01	26	22.4	32	0.22	0.28	Silicate
LON_DDH026		DH_3084	11.80	12.70	1.72	2.19	0.057	< 0.01	28.2	22.3	31	0.19	0.33	Silicate

Bottle Role Leach Tests

The table below shows the nickel and cobalt extractions, after 31 days, from 'bottle roll' leach tests on six 150g samples from diamond drill cores, samples were tested for a total of 90 days but optimal results were received after 31 days. Nickel extractions were between 89% to 99% for the transition and silicate mineralisation, calculated from liquid leachate analyses collected twice weekly. The leachate cobalt extractions were mostly in the range 70% to 80%. The acid consumption was between 226kg/t and 637kg/t for the samples. Lowest acid consumption was achieved in the surface limonite zone.

Mineralisation Type	Sample	Recovery			Acid kg/t
		Days	Ni %	Co %
Limonite	DDH007-01	31	565	55	216
	DDH013-01	31	68	76	203
Transition	DDH007-02	31	89	82	534
	DDH026-01	31	91	82	453
Silicate	DDH007-03	31	99	82	532
	DDH026-02	31	90	83	566

Follow up Field Programme 

Following on from the successful first phase drill programme, geochemical soil lines have been extended east and west of the Northern and Raimundo targets, where recognisance geological work has indicated that additional targets may exist in these directions. Resource drilling will commence in Q1 2010 post the rainy season to bring the project up to JORC compliant resource.

The above information has been reviewed and verified by Mr. Jeremy Martin, a Director and Chief Executive of Horizonte, for the purposes of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in March 2006. Mr. Martin, with seven years of mining and management experience, graduated with a degree in geology from the Camborne School of Mines, and an MSc in mineral exploration from the University of Leicester and is a member in good standing with the Society of Economic Geologists and the Institute of Mining Analysts.

With effect from 26 November 2009, the Company's nominated adviser changed its name from Hanson Westhouse Limited to Westhouse Securities Limited.

* * ENDS * *

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

Jeremy Martin	Horizonte Minerals plc	Tel: [phone]
David Hall	Horizonte Minerals plc	Tel: [phone]
Richard Baty	Westhouse Securities Limited	Tel: [phone]
Martin Davison	Westhouse Securities Limited	Tel: [phone]
Hugo de Salis	St Brides Media & Finance Ltd	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]

Notes:

Horizonte Minerals plc is an AIM quoted exploration and development company with a portfolio of gold, silver and base metal projects in producing mineral districts in Brazil and Peru. The Company is focused on creating value by generating and rapidly advancing new exploration projects to joint venture out to the major mining companies, providing mid-term cash flow which is then used to develop the business and pipeline projects.

Horizonte has four strategic partnerships: AngloGold Ashanti Limited ("AngloGold"), Troy Resources NL, LGA Mineração e Siderugia Ltda and Barrick Gold Corporation, which the Company is working together with to develop its multi commodity portfolio and explore further development opportunities in Brazil and Peru. 

The Company has two primary projects situated in the Carajas Mineral Province of northern Brazil being advanced towards a resource definition; the 22,556 hectare Lontra nickel project situated in the Araguaia mobile belt and the Tangara gold, which the Company signed a US$2.8 million option agreement to advance the project with Troy Resources in December 2007. Horizonte is also developing in tandem with Barrick Gold Corporation, the 2,147 hectare Pararapa gold property located in the Department of Arequipa, southern Peru. 

Additionally, Horizonte has a generative pipeline of early stage projects in development and has established a 50:50 joint venture company with LGA Mineração e Siderugia Ltda to finance the development of the Crixás, Goiás Velho, Carajás Norte, Lobo and the Araguari, and Itajobi pipeline projects, and identify and acquire suitable bolt-on mineral projects in Brazil. Furthermore Horizonte has signed a US$5.3 million three year joint venture in September 2009 with AngloGold to focus on target generation and potential acquisitions of gold projects in Brazil. 

 

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