Horizonte Minerals Plc
TSX : HZM
AIM : HZM

Horizonte Minerals Plc

July 21, 2011 07:00 ET

Horizonte Minerals Continues to Generate High-Grade Nickel Intercepts at Araguaia Project, Brazil-2.25% Ni Over 17.3m

TORONTO, ONTARIO--(Marketwire - July 21, 2011) - Horizonte Minerals (TSX:HZM)(AIM:HZM) ("Horizonte" or "the Company") is pleased to report further positive results from the infill resource drilling programme at its 100% owned Araguaia Nickel project ('Araguaia') in Para Sate, north central Brazil.

HIGHLIGHTS
  • Best intersection of 2.25% nickel ('Ni') over 17.3 metres from infill drilling at Pequizeiro target
  • Other high grade intersections include:
    • 15.6 metres grading 1.97% Ni,
    • 13.8 metres grading 1.96% Ni
    • 19.6 metres grading 1.84% Ni
  • 327 drill holes totalling 8,364 metres completed to date in the 20,000 metre drilling programme
  • Resource drilling programme on target to deliver resource update in Q4 2011
  • Wardell-Armstrong appointed to complete a Preliminary Economic Assessment by end of Q1 2012
  • Second drilling contractor, Boart Longyear, commenced drilling in May 2011 – currently a total of six drilling rigs are in operation

Horizonte CEO Jeremy Martin said, "These ongoing results are excellent. We have numerous high-grade intersections, which will add greatly to the upcoming revised mineral resource estimate due in Q4 2011. Wardell-Armstrong International has been appointed to undertake the Preliminary Economic Assessment of the project and all elements, additional drill rigs, metallurgical test-work, environment and community relations which are required for this study are in place. The Araguaia asset is undervalued relative to its peers and we hope with these ongoing developments that its true worth becomes realised by the market."

Further Details

The results in this news release, have been collated from the on-going 20,000 metre drilling programme that commenced in October 2010. The results from a total of 50 drill holes (1537.69 metres) from the 100 metres x 100 metres infill drilling completed on the Pequizeiro Main zone are detailed in Table 1 and the results from a total of 15 drill holes (539.35 metres) from the 100 metres x 100 metres block of 25 metres spaced holes on the Pequizeiro target are detailed in Table 2 (see location map on http://horizonteminerals.com/project_maps). The data from the 25 metres x 25 metres drilling will be used to measure short-range variability in the mineralisation for the construction of semi-variograms for future mineral resource estimation.

The results include a notable wide, high-grade intersection of 17.3 metres grading 2.25% nickel (Hole PCA-DD-0599). Additional high-grade zones also include 15.6 metres grading 1.97% nickel (Hole PCA-DD-0603), 13.8 metres grading 1.96% nickel (PCA-DD-0587) and 19.6 metres grading 1.84% nickel (PCA-DD-0621).

On the Baião target 141 metres x 141 metres infill drilling has been completed totalling 82 holes. The 100 metres x 100 metres infill drilling has commenced; to date 22 holes have been completed.

On the Vila Oito East target 141 metres x 141 metres infill drilling has commenced with a total of 17 holes completed to date.

Drilling has also commenced on infill drilling on the Lontra targets. To date 33 holes have been completed.

Table 1. Pequizeiro Drilling Program
Intercepts ≥ 1% Ni cut-off
(Holes PCA-DD-0585, PCA-DD-0587 to PCA-DD-0634
& PCA-DD-0641)
Hole From (m) To (m) Width (m) Ni % Co %
PCA-DD-0585 11.82 22.48 10.66 1.66 0.06
PCA-DD-0587 11.05 24.83 13.78 1.96 0.04
PCA-DD-0588 8.66 12.02 3.36 1.54 0.10
PCA-DD-0589 0.29 17.58 17.29 1.88 0.06
PCA-DD-0590 3.67 16.83 13.16 1.86 0.05
PCA-DD-0591 7.77 18.43 10.66 1.72 0.05
PCA-DD-0592 3.23 14.08 10.85 1.72 0.05
PCA-DD-0593 5.26 15.76 10.50 1.52 0.03
PCA-DD-0594 3.79 11.17 7.38 1.93 0.09
PCA-DD-0595 NSI
PCA-DD-0596 3.50 6.53 3.03 1.47 0.08
PCA-DD-0597 5.15 21.36 16.21 1.64 0.05
PCA-DD-0598 9.78 18.10 8.32 1.61 0.04
PCA-DD-0599 5.61 22.93 17.32 2.25 0.05
PCA-DD-0600 3.06 6.50 3.44 1.32 0.09
PCA-DD-0601 5.01 10.46 5.45 1.23 0.03
PCA-DD-0602 8.39 29.29 20.90 1.92 0.04
PCA-DD-0603 11.41 26.98 15.57 1.97 0.05
PCA-DD-0604 NSI
PCA-DD-0605 5.11 7.24 2.13 1.12 0.10
PCA-DD-0606 9.38 25.27 15.89 1.50 0.04
PCA-DD-0607 5.03 22.31 17.28 1.78 0.08
PCA-DD-0608 11.70 25.70 14.00 1.64 0.06
PCA-DD-0609 12.78 23.12 10.34 1.69 0.04
PCA-DD-0610 21.66 24.44 2.78 1.13 0.09
PCA-DD-0611 10.81 29.38 18.57 1.51 0.07
PCA-DD-0612 5.40 20.40 15.00 1.68 0.08
PCA-DD-0613 3.35 15.26 11.91 1.35 0.08
PCA-DD-0614 15.19 30.21 15.02 1.59 0.05
PCA-DD-0615 8.44 24.83 16.39 1.51 0.07
PCA-DD-0616 17.17 26.72 9.55 1.71 0.04
PCA-DD-0617 9.98 24.65 14.67 1.77 0.08
PCA-DD-0618 4.76 9.01 4.25 1.17 0.07
PCA-DD-0619 3.91 5.94 2.03 1.03 0.09
PCA-DD-0620 6.67 12.83 6.16 1.70 0.07
& 18.39 21.98 3.59 1.26 0.07
PCA-DD-0621 10.47 30.03 19.56 1.84 0.05
PCA-DD-0622 5.18 9.13 3.95 1.29 0.09
PCA-DD-0623 6.44 21.62 15.18 1.77 0.06
PCA-DD-0624 4.97 10.10 5.13 1.23 0.13
PCA-DD-0625 NSI
PCA-DD-0626 1.20 14.41 13.21 1.55 0.04
PCA-DD-0627 11.30 27.29 15.99 1.84 0.08
& 30.54 32.83 2.29 1.11 0.02
PCA-DD-0628 8.25 27.75 19.50 1.76 0.05
PCA-DD-0629 7.93 21.25 13.32 1.63 0.04
PCA-DD-0630 6.40 10.45 4.05 1.09 0.03
& 13.38 17.07 3.69 1.16 0.05
PCA-DD-0631 5.24 11.24 6.00 1.31 0.05
& 13.25 16.45 3.20 1.15 0.02
PCA-DD-0632 5.25 7.30 2.05 1.92 0.06
& 10.52 18.77 8.25 1.69 0.04
PCA-DD-0633 6.54 20.22 13.68 1.50 0.04
PCA-DD-0634 21.23 34.21 12.98 1.32 0.06
PCA-DD-0641 13.86 28.36 14.50 1.88 0.05
Table 2. Pequizeiro Drilling Program
25m x 25m spaced drilling in 100m x 100m block
Intercepts ≥ 1% Ni cut-off
(Holes PCA-DD-0636V to PCA-DD-0640V;
PCA-DD-0645V to PCA-DD-0650V;
PCA-DD-0652V to PCA-DD-0654V & PCA-DD-0657V)
Hole From (m) To
(m)
Width (m) Ni % Co %
PCA-DD-0636V 9.46 15.51 6.05 1.60 0.05
PCA-DD-0637V 11.37 25.36 13.99 1.60 0.06
PCA-DD-0638V 9.30 25.92 15.20 1.84 0.05
PCA-DD-0639V 13.60 23.76 10.16 1.55 0.04
PCA-DD-0640V 9.67 19.33 9.66 1.79 0.04
PCA-DD-0645V 11.70 25.81 14.11 2.00 0.05
PCA-DD-0646V 6.72 21.78 15.06 1.76 0.06
& 25.43 27.91 2.48 1.61 0.03
PCA-DD-0647V 10.13 19.92 9.79 1.52 0.06
PCA-DD-0648V 11.19 19.34 8.15 1.44 0.05
PCA-DD-0649V 8.89 21.61 12.72 1.62 0.05
PCA-DD-0650V 6.03 16.16 10.13 1.70 0.05
PCA-DD-0652V 9.00 18.50 9.50 1.47 0.05
PCA-DD-0653V 8.73 18.32 9.59 1.38 0.04
PCA-DD-0654V 7.98 19.11 11.13 1.54 0.06
PCA-DD-0657V 6.91 19.91 13.00 1.72 0.05
NSI: No significant intersection

The compositing of the nickel grades in the individual holes was completed across geological boundaries using a nickel cut-off of 1% with a minimum intercept length of two metres and a maximum length of internal waste of two meters. Weighted averages were calculated using double weighting i.e. individual samples were weighted against both length and bulk density. As the nickel laterite deposits are essentially flat-lying, all widths given are true widths.

Sample preparation and analyses

Samples from the Pequizeiro drill cores were crushed and pulverised at the SGS laboratory in Goiania and the resultant pulps analysed at SGS laboratory in Belo Horizonte using tetraborate fusion X-Ray Fluorescence ('XRF'). Full QA/QC procedures were implemented, including the insertion of standards, duplicates and blanks. Check samples representing approximately 5% of all the samples will be sent to another international laboratory for analysis by XRF.

Qualified Person

The technical information contained in this press release has been reviewed, verified and approved by Dr. Marc-Antoine Audet P.Geo., an independent consulting geologist and a Qualified Person under National Instrument 43-101.

About Horizonte Minerals

Horizonte Minerals plc is an AIM and TSX listed exploration and development Company with a portfolio of nickel and gold projects in the Carajas District of Brazil. The Company is focussed on creating value by generating and rapidly advancing exploration projects in tandem with joint ventures with major mining companies, providing mid-term cash flow, which is then used to develop the business and pipeline projects.

Horizonte has two committed major mining partners: Teck Resources Limited, a major strategic shareholder in the Company, and AngloGold Ashanti Limited, a JV partner on the gold portfolio.

Horizonte owns 100 per cent of the advanced Araguaia nickel project located to the south of the Carajas mineral district of northern Brazil; the project has the potential to deliver a resource with size and grades comparable to other world-class projects in northern Brazil.

In addition, Horizonte and AngloGold Ashanti have a US$5.3 million exploration alliance to generate and develop new and existing gold targets within two areas of Brazil and a further JV with the major whereby AngloGold Ashanti can earn into 51% of the Falcao gold project by expending US$4.5 million over three years with the right to earn a further 19% by taking the project to Pre-feasibility Study.

Horizonte is well funded to accelerate the development of its core projects.

All material information regarding Horizonte Minerals may be found on the company's website at www.horizonteminerals.com or on SEDAR at www.sedar.com

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain information contained in this press release constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the potential of the Company's current or future property mineral projects; the success of exploration and mining activities; cost and timing of future exploration, production and development; the estimation of mineral resources and reserves and the ability of the Company to achieve its goals in respect of growing its mineral resources; the realization of mineral resource and reserve estimates; and the estimated time for delivery of a preliminary economic assessment by Wardell-Armstrong. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". In addition, statements relating to "mineral reserves" or "mineral resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the mineral resources and mineral reserves described can be profitably mined in the future.
Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: exploration and mining risks, competition from competitors with greater capital; the Company's lack of experience with respect to development-stage mining operations; fluctuations in metal prices; uninsured risks; environmental and other regulatory requirements; exploration, mining and other licences; the Company's future payment obligations; potential disputes with respect to the Company's title to, and the area of, its mining concessions; the Company's dependence on its ability to obtain sufficient financing in the future; the Company's dependence on its relationships with third parties; the Company's joint ventures; the potential of currency fluctuations and political or economic instability in countries in which the Company operates; currency exchange fluctuations; the Company's ability to manage its growth effectively; the trading market for the ordinary shares of the Company; uncertainty with respect to the Company's plans to continue to develop its operations and new projects; the Company's dependence on key personnel; possible conflicts of interest of directors and officers of the Company, and various risks associated with the legal and regulatory framework within which the Company operates.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

Contact Information

  • Horizonte Minerals plc
    Jeremy Martin
    +44 (0) 20 7763 7157

    Horizonte Minerals plc
    David Hall
    +44 (0) 20 7763 7157

    Horizonte Minerals plc
    North American Investor Relations
    Joanne Jobin
    647 964 0292

    Panmure Gordon (UK) Limited
    (Nomad and Broker)
    Dominic Morley
    +44 (0) 20 7459 3600

    UK Investor Relations
    Felicity Edwards
    +44 (0) 20 7236 1177