TIDMHZM
RNS Number : 6172G
Horizonte Minerals PLC
31 May 2017
NEWS RELEASE
31 May 2017
HIGH GRADE DRILLING RESULTS FROM THE TRIAL EXCAVATION SITE AT
THE ARAGUAIA NICKEL PROJECT
_____________________________________________________________________
31 May 2017 - Horizonte Minerals Plc, (AIM: HZM, TSX: HZM)
('Horizonte' or 'the Company') the nickel development company
focused in Brazil, is pleased to announce the complete results of
the 30 hole pre-excavation drilling programme on its 100%-owned
Araguaia nickel project ('Araguaia' or 'the Project').
Highlights
-- High grade nickel intersections include:
o 4.97 metres grading 2.44% Ni
o 8.69 metres grading 2.31% Ni
o 8.62 metres grading 2.19% Ni
o 11.14 metres grading 2.07% Ni
o 11.05 metres grading 2.02% Ni
-- Delivery of a key milestone as part of the Feasibility Study ('FS')
-- Trial excavation work underway with the aim of converting
Probable Reserve to Proven Reserve, conform resource
re-conciliation and overall mining conditions
Horizonte CEO Jeremy Martin said, "I am pleased to report the
completion of the diamond drill programme over the trial excavation
site, the aim of this work was to define an area with near surface
transition and saprolite mineralisation that would be
representative of the first five to eight years mine life. The
drill results demonstrate this and additionally confirm the high
grade nature of the nickel mineralisation that has been drill
defined across the project. The next stage is the trial excavation
programme over this area, which is now underway. The trial
excavation programme targets the removal of approximately 20,000
tonnes of ore down to a depth of around 14 metres utilising two 35
tonne excavators and four 35 tonne trucks. We look forward to
providing updates on this work stream, and the rest of the FS as we
work to develop Araguaia as the next major ferronickel
operation."
Further Details - Pre-Excavation Drilling Programme
The drilling programme was designed to test the selected site on
the Pequizeiro deposit for the Trial Excavation exercise to feed
into the ongoing FS. The key objectives were:
1) to confirm that the selected site met the minimum criteria of
containing 2m of mineralised Transition and 2m of mineralised
Saprolite to a total depth below surface of 12m and;
2) to provide close spaced (5m and 10m) drilling data for the
estimation of tonnage and grade into Selected Mining Units ('SMU')
(5m x 5m x 2m) for reconciliation with the tonnage and grade of the
actual SMUs removed in the Trial Excavation
The drilling was completed on a 5m x 5m grid of six east-west
rows of 5 holes each. It comprised a total of 30 holes each drilled
to a depth of 20m for a total of 600m of HQ core drilling.
The drilling programme confirmed the first objective of the
minimum required intersections of mineralised Transition and
Saprolite facies and the detailed sampling and assay of the core
has delivered on the second objective of providing the required
data for the estimation of the tonnage and grade into the 5m x 5m x
2m SMUs.
The results for the complete 30 hole programme are presented in
Table 1 below. These results contain several high grade
intersections including 4.97 metres grading 2.44% nickel (hole
PCA_DD_1806E), 8.69 metres grading 2.31% nickel (hole
PCA_DD_1797E), 8.62 metres grading 2.19% nickel (hole
PCA_DD_1814E), 11.14 metres grading 2.07% nickel (hole
PCA_DD_1802E) and 11.05 metres grading 2.02% nickel (hole
PCA_DD_1793E)
Table 1. Results of Drilling on 5m x 5m Grid
on Area Selected for Trial Excavation
Intercepts >=1% Ni cut-off
Holes PCA_DD_1793E to PCA_DD_1822E
------------------------------------------------------
Hole From To (m) Width Ni %
(m) (m)
----------------- -------- -------- ------- ------
PCA_DD_1793E 8.95 20.00 11.05 2.02
----------------- -------- -------- ------- ------
PCA_DD_1794E 7.84 11.26 3.42 1.46
----------------- -------- -------- ------- ------
ditto 13.75 20.00 6.25 1.50
----------------- -------- -------- ------- ------
PCA_DD_1795E 9.30 20.00 10.70 1.91
----------------- -------- -------- ------- ------
PCA_DD_1796E 8.94 20.00 11.06 1.81
----------------- -------- -------- ------- ------
PCA_DD_1797E 8.51 17.20 8.69 2.31
----------------- -------- -------- ------- ------
ditto 17.80 18.50 0.70 1.06
----------------- -------- -------- ------- ------
PCA_DD_1798E 9.44 18.85 9.41 1.89
----------------- -------- -------- ------- ------
PCA_DD_1799E 3.21 5.21 2.00 1.18
----------------- -------- -------- ------- ------
ditto 8.51 20.00 11.49 1.84
----------------- -------- -------- ------- ------
PCA_DD_1800E 9.25 15.64 6.39 1.94
----------------- -------- -------- ------- ------
ditto 18.64 20.00 1.36 1.38
----------------- -------- -------- ------- ------
PCA_DD_1801E 8.83 11.09 2.26 1.48
----------------- -------- -------- ------- ------
ditto 12.13 15.16 3.03 1.77
----------------- -------- -------- ------- ------
ditto 16.33 20.00 3.67 1.24
----------------- -------- -------- ------- ------
PCA_DD_1802E 8.86 20.00 11.14 2.07
----------------- -------- -------- ------- ------
PCA_DD_1803E 8.84 20.00 11.52 1.40
----------------- -------- -------- ------- ------
PCA_DD_1804E 7.83 20.00 12.17 1.38
----------------- -------- -------- ------- ------
PCA_DD_1805E 6.92 20.00 12.55 1.63
----------------- -------- -------- ------- ------
PCA_DD_1806E 6.44 11.41 4.97 2.44
----------------- -------- -------- ------- ------
ditto 12.24 20.00 7.76 1.79
----------------- -------- -------- ------- ------
PCA_DD_1807E 6.59 20.00 13.41 2.00
----------------- -------- -------- ------- ------
PCA_DD_1808E 6.09 20.00 13.91 1.89
----------------- -------- -------- ------- ------
PCA_DD_1809E 8.17 20.00 11.83 1.88
----------------- -------- -------- ------- ------
PCA_DD_1810E 8.25 20.00 11.75 1.76
----------------- -------- -------- ------- ------
PCA_DD_1811E 8.84 12.34 3.50 1.60
----------------- -------- -------- ------- ------
ditto 15.84 20.00 4.16 1.12
----------------- -------- -------- ------- ------
PCA_DD_1812E 9.30 16.82 7.52 1.58
----------------- -------- -------- ------- ------
PCA_DD_1813E 9.47 18.38 8.91 1.99
----------------- -------- -------- ------- ------
PCA_DD_1814E 10.04 18.66 8.62 2.19
----------------- -------- -------- ------- ------
PCA_DD_1815E 8.18 20.00 11.82 1.65
----------------- -------- -------- ------- ------
PCA_DD_1816E 8.81 20.00 11.19 1.95
----------------- -------- -------- ------- ------
PCA_DD_1817E 8.40 20.00 11.60 1.82
----------------- -------- -------- ------- ------
PCA_DD_1818E 9.31 20.00 10.69 1.53
----------------- -------- -------- ------- ------
PCA_DD_1819E 9.76 20.00 10.24 1.57
----------------- -------- -------- ------- ------
PCA_DD_1820E 7.74 18.32 10.58 1.53
----------------- -------- -------- ------- ------
PCA_DD_1821E 7.16 20.00 12.84 1.57
----------------- -------- -------- ------- ------
PCA_DD_1822E 7.83 20.00 12.17 1.74
----------------- -------- -------- ------- ------
The compositing of the nickel grades in the individual holes was
completed across geological boundaries using a nickel cut-off of 1%
with a minimum intercept length of 2.0 metres and a maximum length
of internal waste of 2 metres. All holes were vertical and, as
these nickel laterite deposits are essentially flat-lying, all
widths given are true widths. Core recoveries in the mineralised
sections met the appropriate standards for this style of
mineralisation and were generally >90%.
Horizonte Minerals prepared this news release and David Hall
BSc, MSc, Fellow SEG PGeo. a director of the Company and Qualified
Person under National Instrument 43-101, reviewed and approved the
drillhole technical information.
The Araguaia Nickel Project
Araguaia, which is 100% owned by Horizonte, is located on the
eastern margin of the State of Pará, north-eastern Brazil, to the
north of the town of Conceição do Araguaia (population of 46,206),
south of the main Carajás Mining District.
The Project has good regional infrastructure including a network
of Federal highways and roads, with access to low tariff
hydro-electric power. The Carajás Mining District, situated
approximately 200km northwest of Araguaia, is host to a number of
major iron and copper mines operated by mining major Vale SA.
The PFS released in October 2016 considers open pit mining for
the exploitation of nickel laterite to establish the production of
run of mine ('ROM') from eight open pits to supply a targeted 0.9
million tonnes per annum ('Mt/a') of ore to a processing and
smelter facility. This facility will use the proven RKEF process
with the product being sold at free on board ('FOB') at the
selected port of export.
A Base Case of 0.9 Mt/a production throughput was selected
because of the Company's objective to minimise the capital
expenditure and overall capital intensity, and to optimise overall
cash flow, payback, and the economics of the Project.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
* * ENDS * *
For further information visit www.horizonteminerals.com or
contact:
Jeremy Martin Horizonte Minerals Tel: +44 (0)
plc 20 7763 7157
David Hall Horizonte Minerals Tel: +44 (0)
plc 20 7763 7157
Emily Morris finnCap Ltd (Corporate Tel: +44 (0)
Christopher Broking) 20 7220 0500
Raggett finnCap Ltd (Corporate Tel: +44 (0)
James Thompson Finance) 20 7220 0500
finnCap Ltd (Corporate Tel: +44 (0)
Finance) 20 7220 0500
Anthony Adams finnCap Ltd (Corporate Tel: +44 (0)
Finance) 20 7220 0500
Damon Heath Shard Capital (Joint Tel: +44 (0)
Broker) 20 7186 9952
Erik Woolgar Shard Capital (Joint Tel: +44 (0)
Broker) 20 7186 9952
Lottie Brocklehurst St Brides Partners Tel: +44 (0)
Elisabeth Ltd (PR) 20 7236 1177
Cowell St Brides Partners Tel: +44 (0)
Ltd (PR) 20 7236 1177
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 Carajás mineral district of northern Brazil. The Company is
developing Araguaia as the next major nickel mine in Brazil, with
targeted production by 2019.
The Project has good infrastructure in place including rail,
road, water and power.
Horizonte has a strong shareholder structure including Teck
Resources Limited 17.9%, Lombard Odier Asset Management (Europe)
Limited 14.11%, Richard Griffiths 14.5%, JP Morgan 8.4%, Hargreave
Hale 6.84% and Glencore 6.4%%.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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