Hor­i­zonte re­leases Araguaia NI 43-101 re­source es­ti­mate

Stockwatch Daily - - MINES & METALS - Mr. Jeremy Martin re­ports

HOR­I­ZONTE MIN­ER­ALS PLC has re­leased its re­source es­ti­mate for the nickel/cobalt limonite por­tion of the Araguaia nickel project.

High­lights:

• The limonite min­eral re­sources, in the mea­sured and in­di­cated cat­e­gory, are 20.7 mil­lion tonnes grad­ing 1.13 per cent nickel and 0.12 per cent cobalt (cut-off grade of 0.9 per cent nickel).

• The limonite mea­sured and in­di­cated re­sources are es­ti­mated to con­tain 233,200 tonnes (515

mil­lion pounds) of nickel and 25,580 tonnes (56 mil­lion pounds) of cobalt.

• Re­sources do not form part of the mine sched­ule, nor the fi­nan­cial model for the RKEF plant cur­rently the fo­cus of the fea­si­bil­ity study (FS).

• There is ad­di­tional po­ten­tial within the over­all project area to ex­pand th­ese limonite re­sources.

At a cut-off grade of 0.90 per cent nickel, the es­ti­mated limonite min­eral re­sources in the Ara South de­posits (Ba­iao, Pe­quizeiro, Pe­quizeiro West, Ja­cutinga, Vila Oito, Vila Oito West, Vila Oito East) and the Ara North de­posit (Vale dos Son­hos) are pre­sented in the as­so­ci­ated ta­ble.

(See HZM Ta­ble 1 on page 18)

Chief ex­ec­u­tive of­fi­cer Jeremy Martin said: “We are pleased to an­nounce the limonite re­sources at the Araguaia project. The pro­cess­ing of th­ese re­sources is not part of the cur­rent mine plan in the fea­si­bil­ity study (FS) for the ro­tary kiln electric fur­nace project (RKEF). In the FS, the plan is to ex­tract and stock­pile the limonite re­sources on the sur­face; how­ever, the stock­pile con­tains over 230,000 tonnes of nickel and 25,000 tonnes of cobalt which are not cur­rently in­cluded in the cash flow model for the Araguaia RKEF project.

“We are mind­ful of the fu­ture po­ten­tial value of this ma­te­rial so as part of the cur­rent mine plan it will be mined and stock­piled sep­a­rately based on min­er­al­ogy and nickel/cobalt grades. The limonite can­not be pro­cessed us­ing RKEF process so it will re­quire an al­ter­nate process tech­nol­ogy. The ma­te­rial will be lo­cated in a per­mit­ted mine site with all in­fra­struc­ture in place so it rep­re­sents a low-cost source of nickel and cobalt that has the po­ten­tial to add sig­nif­i­cant up­side to the over­all op­er­a­tion, and at the ap­pro­pri­ate time, the com­pany may de­cide to ad­vance eco­nomic stud­ies on its nickel/cobalt pro­duc­tion po­ten­tial. The com­pany’s cur­rent fo­cus re­mains on the ex­ist­ing FS for the RKEF plant, but th­ese limonite re­sources pro­vide the po­ten­tial to es­tab­lish a sec­ond, com­ple­men­tary project on the same site in due course. It should also be high­lighted that there is po­ten­tial within the over­all project area to ex­pand th­ese pre­lim­i­nary limonite re­sources with ad­di­tional ex­plo­ration work.

“In other parts of the world, limonite re­sources are treated to pro­duce prod­ucts, such as nickel and cobalt hy­drox­ides, suit­able for sup­ply­ing the electric ve­hi­cle (EV) bat­tery mar­ket. De­mand for nickel and cobalt is ex­pected to ac­cel­er­ate over the next five to 10 years as EV bat­tery pro­duc­tion ramps up . ...

“This new de­vel­op­ment po­si­tions Hor­i­zonte with ex­po­sure to the fast-grow­ing nickel/cobalt EV bat­tery mar­ket. With our planned RKEF plant able to pro­duce ferro-nickel for tra­di­tional use in the stain­less steel in­dus­try, the limonite re­sources at Araguaia have the po­ten­tial to sup­ply sub­stan­tial nickel and cobalt prod­ucts into the EV bat­tery sec­tor.

“We are work­ing to­wards pub­lish­ing the fea­si­bil­ity study by the end of the fourth quar­ter of 2017/first quar­ter of 2018, while we review process op­tions for the limonite ma­te­rial and look at the up­side that could be added to the ad­vanced Araguaia project.”

We seek Safe Har­bor.

Karen Bax­ter con­densed this news re­lease (karenb@stock­watch.com).

Owen Alexan­der Bav­in­ton, Alexan­der N Christo­pher, Wil­liam J Fisher, David Jonathan Hall, Jeremy John Martin, Al­lan Michael Walker

(HZM) Shares: 1,171,934,300

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