Horizonte to secure Araguaia approval?

PUBLISHED: Jun 19 2014 @ 14:24 | Comments (0) |

SOCIAL ENVIRONMENTAL IMPACT ASSESMENT COMPLETED AND FILED WITH ENVIRONMENTAL AGENCY FOR ARAGUAIA NICKEL PROJECT BRAZIL

Horizonte Minerals Plc, (AIM:HZM) (TSX:HZM) the nickel development company focused in Brazil, announces that it has filed the Social Environmental Impact Assessment with the Pará State Environmental Agency in Brazil for its 100%-owned Araguaia Nickel Project located south of the Carajas mining district in Pará State, northern Brazil. Horizonte is currently developing Araguaia towards the Feasibility Stage in H2 2014 and hopes to receive the full SEIA approval in Q4 2014/ Q1 2015.

The Pará State Environmental Agency (SEMA) in Brazil will now analyse the SEIA and host a public hearing in Q3 2014 where Araguaia will be presented to local communities, rural landowners and authorities in the municipality of Conceição do Araguaia. Following the public hearing the State Environmental Council will approve the issue of the Preliminary Licence.

The LP, valid for three years in Pará, authorises the next stages of work for the development of the Project and obtaining approval for location, design, and environmental sustainability for Araguaia’s implementation. By granting the LP, the Pará State Environmental Agency approves that the Project is environmentally and socially acceptable. The granting of the LP is the first stage in a three-stage environmental licencing process to develop a mine in Brazil.

Horizonte Minerals’ CEO Jeremy Martin said, “The completion and filing of the SEIA for Araguaia marks a significant de-risking step for the Project, as we work with local stakeholders, communities and government agencies towards the development of the next major nickel mine in Brazil. The SEIA has been an important phase of work covering the environmental and social base line data collection over the last two years. The report is currently being reviewed by the Pará State Environmental Agency, and post the public hearing, should receive full approval in Q4 2014/Q1 2015 which will be an additional milestone following the completion of the 43-101 Pre-Feasibility Study. I look forward to updating shareholders on future project progress in due course.”

Further Information

SEIA:

The SEIA, which complies with the Brazilian Environmental laws, includes information on: climate; particulate matter; groundwater composition and depth; soils; surface water composition; fauna and flora; regional demographics; stakeholders; community infrastructure and land rights. Horizonte, through its subsidiary Araguaia Niquel, completed the collection and analysis of the baseline social and environmental data specified by the state environmental agency, SEMA. This data and analysis, together with the recently completed NI 43-101 compliant Pre-Feasibility Study prepared by Snowden Mining Industry Consultants Limited, along with additional groups, provided the base on which the SEIA was prepared. The SEIA was prepared and led by Walm Engenharia e Tecnologia Ambiental.

Araguaia Nickel Project

Horizonte Minerals recently announced the results of a Pre-Feasibility study at its flagship Araguaia Nickel Project in Brazil, 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 targeting 15,000tpa nickel with a 20% Ferro Nickel 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 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.

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