Horizonte releases Araguaia NI 43-101 resource estimate
HORIZONTE MINERALS PLC has released its resource estimate for the nickel/cobalt limonite portion of the Araguaia nickel project.
• 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.”
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Karen Baxter condensed this news release (firstname.lastname@example.org).
Owen Alexander Bavinton, Alexander N Christopher, William J Fisher, David Jonathan Hall, Jeremy John Martin, Allan Michael Walker
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