Horizonte Minerals (AIM:TSX: HZM) Water permit approved for Araguaia


Horizonte receives Water Permit approval for commercial Mining and Processing operations at Araguaia


Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (‘Horizonte’ or ‘the Company’) is pleased to announce that it has been granted the definitive Water Permit (Outorgain Portuguese), for industrial water consumption at the planned Araguaia Nickel Project (‘Araguaia’) by the Brazilian Pará State Environmental Agency (‘SEMAS’). The Water Permit, granted to Horizonte’s wholly owned subsidiary, Araguaia Níquel Metais Ltda., is another key permit and brings the Company closer to its objective of being ‘construction-ready’, by the end of 2018.



·    SEMAS has approved the Water Permit for abstraction and industrial use at Araguaia;

·    The permit guarantees access to water, required for the full-scale commercial operation at Araguaia, including mining and beneficiation plant activities;

·    The approval of the Water Permit further de-risks Araguaia, as it ensures that the project will have sufficient water to conduct open-pit mining operations and operate the process plant continuously for 24 hours a day, 365 days per year;



Horizonte CEO, Jeremy Martin, commented:


“The approval and award of the water permit is another significant milestone in the development of the Araguaia Project.  The availability of water for mining projects is a key risk in many countries, the permit guarantees the Company access to the water required for the mining and processing to produce 14,500 tonnes of nickel per year.


Elsewhere on the project we are working towards the completion of the Feasibility Study due mid-year, together with advancing the final permits required to ensure the project is construction ready and moving forwards with strategic initiatives relating to the project financing.”


Details on the Water Permit


Horizonte has conducted multiple years of baseline environmental data collection in the region, including flow monitoring of the Arraias River. Water is planned to be pumped from the Arraias River through a pipeline approximately 11 km to the water cooling dam which will be located beside the Araguaia beneficiation plant.


Environmental Resource Management (‘ERM’) consultants in the United Kingdom developed an integrated water balance hydrological model with input from the other FS consulting groups and Horizonte’s engineering team.  The water balance reflects the seasonal conditions of northern Brazil and ensures water requirements are met for continuous running of the process plant during 24 hours a day over the Life of Mine. Araguaia’s planned operation includes a closed-circuit system and the Company aims to recycle between 80%-90% of the total water used in the process.


Infrastructure layouts were designed to take advantage of the topography and drainage systems in the region, thereby further increasing the sustainability of the project. Details of infrastructure layouts will be released in the FS, due to be announced in mid-2018.


The Water Permit is designed to regulate Araguaia’s water consumption for commercial mining operations and the Permit sets out the conditions and requirements for us to continue to successfully protect the environment in which we operate. Horizonte is continuing its discussions with SEMAS to progress additional permits necessary to commence construction of the Araguaia project. 


The abstraction limits specified in the Water Permit allows for the required water consumption, including contingency, envisaged in the Feasibility Study.


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, in the Municipal of Conceição do Araguaia (population of 46,206), south of the main Carajás Mining District.


The region has good infrastructure in place including rail, road, water and power. Araguaia plans to produce around 14,500 tonnes of contained nickel in approximately 50,000 tonnes of ferronickel per year from processing 0.9 million tonnes of ore via the proven and widely utilized Rotary Kiln Electric Furnace (RKEF) process route.


This announcement contains inside information for the purposes of Article 7 of EU

Regulation 596/2014.

* * ENDS * *


For further information visit www.horizonteminerals.com 

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