Horizonte Minerals Plc, (AIM/TSX: HZM)
('Horizonte' or 'the Company') the multi-asset nickel development
company focused in Brazil, is pleased to provide an update on its
100% owned, Vermelho nickel-cobalt project ('Vermelho' or ‘the
Project’), located in the eastern part of the Carajás mining
district.
Highlights
- Test-work is underway at SGS
Lakefield, Canada, on Vermelho limonite samples, with the objective
of producing high purity nickel and cobalt sulphate suitable for
the Electric Vehicle (‘EV’) battery market;
- Initial tests show high nickel and cobalt extraction rates
achieved on limonite samples;
- In addition, batch smelting
test-work is being conducted on samples of transition and saprolite
material from Vermelho at the KPM laboratory, Canada. This
work aims to confirm its suitability to produce high grade
ferro-nickel, which could potentially be treated at the Araguaia
plant or a new standalone facility at Vermelho; and
- Environmental baseline data
collection has re-commenced at Vermelho as part of advancing the
permitting process.
Horizonte CEO, Jeremy Martin,
commented:
“Horizonte is advancing its recently acquired
Vermelho project, a scalable high-grade nickel deposit which has
the potential to supply raw materials into the battery industry.
Two parallel streams of test-work are currently underway.
“The first, testing the limonite ore’s
suitability for production of high purity nickel and cobalt
sulphate to supply EV markets. The second, testing the saprolite
ore as a feed into the planned Rotary Kiln Electric Furnace
(‘RKEF’) plant at Araguaia, or potentially into a standalone RKEF
plant at Vermelho.
“This is an exciting time for Horizonte, as the
Company aims to release its Feasibility Study results for Araguaia
due imminently, and in parallel, advance its second asset,
Vermelho. Horizonte is firmly on its pathway to become a
multi-asset nickel development company. The nickel market remains
strong, with robust demand and inventories continuing to fall.”
Vermelho nickel-cobalt project
The Vermelho nickel-cobalt project is located in
the eastern part of the Carajás mining district in the state of
Pará, Brazil, approximately 85km north west from the northern part
of Horizonte’s Araguaia FeNi Project. The Carajás district is an
established mining region with well-developed infrastructure,
including: rail, roads and hydro-electric power. The Project was
developed by Vale with the objective of becoming its principal
nickel-cobalt operation. Extensive work was undertaken on the
Project, which included drilling programmes totalling 152,000
metres, full scale pilot test work and detailed engineering
studies. The Project was subsequently taken through a feasibility
programme with Vale announcing a positive development decision in
2005. The Feasibility Study showed production capacity of 46,000
tons/annum (‘tpa’) of metallic nickel, and 2,500 tpa of metallic
cobalt, with an expected commercial life of 40 years.
In May 2018, Horizonte announced an initial NI
43-101 Mineral Resource Estimate in the Measured and Indicated
category which contained 167.8 million tonnes grading 1.01% nickel
and 0.06% cobalt (at 0.9% nickel equivalent cut off). These
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 Vermelho as
one of the largest, highest grade, undeveloped laterite
nickel-cobalt resources globally.
SGS Lakefield leaching
test-work
Samples of wet Vermelho limonitic laterite
material totalling 150 kg were shipped to the laboratories of SGS
Canada Inc. for test-work using high pressure leaching. The
leaching is being carried out in a number of batches with a 20
litre autoclave; this is after first establishing conditions in two
litre samples. The resulting leach solution will be neutralised
with limestone, followed by mixed hydroxide precipitation with
magnesium-oxide. Following a re-leach, a series of solvent
extraction and ion exchange steps will be carried out prior to
crystallisation of pure cobalt sulphate heptahydrate. The nickel
sulphate solution is to be processed separately.
Kingston Process Metallurgy (KPM) Inc
smelting test-work
Laboratory scale ferro-nickel smelting tests are
being carried out on samples of Vermelho transition and saprolite
material at the laboratories of KPM Inc. in Canada. Following the
steps used in the standard RKEF process (same flow sheet as planned
at Araguaia), the material will be dried and calcined prior to
smelting in a laboratory furnace at approximately 1550˚C. By
adjustment of the coal amounts for reduction, a range of typical
ferro-nickel grades will be produced and submitted for further
analysis.
This announcement contains inside information
for the purposes of Article 7 of EU Regulation 596/2014.
For further information visit
www.horizonteminerals.com or contact:
Horizonte Minerals
plc |
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Jeremy Martin (CEO) |
+44 (0) 20 7763 7157 |
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Numis Securities Ltd
(NOMAD & Joint Broker) |
John Prior Paul Gillam |
+44 (0) 207 260 1000 |
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Shard Capital (Joint
Broker) |
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Damon Heath Erik Woolgar |
+44 (0) 20 7186 9952 |
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Tavistock (Financial
PR) |
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Emily FentonGareth Tredway |
+44 (0) 20 7920 3150 |
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About Horizonte Minerals:
Horizonte Minerals plc is an AIM and TSX-listed
nickel development company focused in Brazil. The Company is
developing the Araguaia project, as the next major ferro-nickel
mine in Brazil, and the Vermelho nickel-cobalt project, 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.
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, the ability of the Company to
complete the Acquisition as described herein, 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; the ability of the Company to
complete the Placing as described herein, 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: the inability of the Company to
complete the Acquisition as described herein, 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, the inability of the Company
to complete the Placing on the terms as described herein, 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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