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Horizonte Minerals' tonnage bumped up for Serra do Tapa resource

Since the end of the quarter, Horizonte has also published a pre-feasibility study for the Vermelho nickel-cobalt deposit, its second site in Brazil

Horizonte Minerals PLC -
Vermelho has a 38-year projected mine life

Horizonte Minerals PLC (LON:HZM) (TSX:HZM) has highlighted another quarter of good progress at its projects in Brazil.

At its flagship Araguaia project, mine financier Orion is to provide US$25mln for a 2.25% royalty on the first 426,429 tonnes of contained nickel within the final product (ferronickel) produced and sold.

Horizonte also published a first resource for the Serra do Tapa nickel deposit that sits 90km to the north-west of Araguaia.

In the Measured and Indicated category, Serra do Tapa contains 70.3mln tonnes grading 1.22% nickel, which has boosted Horizonte’s total tonnage by 30%.

A significant portion of high-grade saprolite within the deposit is amenable to the Rotary Kiln Electric Furnace ferronickel process route, potentially providing a further high-grade feed source for the Araguaia project, said the junior.

Since the end of the quarter, Horizonte has also published a pre-feasibility study for the Vermelho nickel-cobalt deposit, its second site in Brazil.

The study projected a 38-year mine life for Vermelho, with total cash flows over that time estimated at some US$7.3bn after tax.

On a base case, the valuation is US$1.7bn (net present value) and the internal rate of return is 26%.

Horizonte posted a loss of £1.1mln in the three months to September.

Quick facts: Horizonte Minerals PLC

Price: 3.04 GBX

AIM:HZM
Market: AIM
Market Cap: £43.97 m
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Watch

Horizonte Minerals now a developer of two 'world-class nickel assets'

Horizonte Minerals PLC's (LON:HZM) Jeremy Martin speaks to Proactive London's Andrew Scott soon after releasing the findings of a successful pre-feasibility study on its Vermelho project. The PFS confirms a 'large, high-grade resource, with a long life and low-cost source of nickel sulphate...

on 21/10/19

2 min read