HORIZONTE ANNOUNCES VERMELHO MINERAL RESOURCE CONFIRMING SIGNIFICANT NICKEL AND COBALT INVENTORY
09 May 2018 – Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (‘Horizonte’ or ‘the Company’) the nickel development company focused in Brazil which is developing the Araguaia nickel project as Brazil’s next ferro-nickel mine, is pleased to announce an initial NI 43-101 Mineral Resource Estimate for the recently acquired Vermelho nickel/cobalt project.
· The Vermelho Nickel-Cobalt Mineral Resources, in the Measured and Indicated category, are 167.8 million tonnes grading 1.01% nickel and 0.06% cobalt (at 0.9% nickel equivalent cut off)
· The Measured and Indicated mineral resources categories are estimated to contain 1.68 million tonnes (3,700 million lbs) of nickel and 94,000 tonnes (207 million lbs) of cobalt
· The Mineral Resource Estimate places the Vermelho project as one of the largest, highest grade undeveloped laterite nickel – cobalt resources globally
· Significant portion of high grade saprolite within the deposit is amenable to the Rotary Kiln Electric Furnace process route to produce ferronickel being developed at the Araguaia project
· Test work planned to confirm the Vermelho mineralisation is suitable to produce nickel and cobalt sulphate for the EV battery Market
Horizonte’s CEO Jeremy Martin said, “This NI 43-101 Mineral Resource covering the Vermelho nickel-cobalt project is an exciting development for the Company. The resource is high grade, at around 1.34% NiEq% and places the project on the upper end of the global grade curve as well as being scalable, adding over 1.6 million tonnes of contained nickel and over 90,000 tonnes of contained cobalt to the Company’s substantial global metal inventory.
The next phase of work at Vermelho will focus on advancing the work that Vale completed as part of their Feasibility Study, taking the mixed hydroxide product (MHP) and upgrading to nickel and cobalt sulphate suitable for use in the evolving EV battery market. The acquisition of the Vermelho nickel – cobalt project means that Horizonte now has the potential to supply both high grade ferro-nickel from the Araguaia project to the stainless steel market and nickel/cobalt products from Vermelho that can be used in both the EV battery market or the metals space as we work towards becoming a leading nickel development company.
The current focus at the Araguaia ferro-nickel project is the completion of the Feasibility Study and the work related to the award of the construction licence. We look forward to keeping the market updated as we advance both projects against a backdrop of strengthening nickel and cobalt prices, where recent nickel prices have been in the US$ 6-7/lb range and cobalt prices continue to trade above US$40/lb, driven by a combination of growing demand, as highlighted by recent Chinese EV numbers and concern around cobalt supply restrictions in the DRC”
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