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Not to forget this just sitting around that belongs to us too... We this be fired up in 10 years separately to fullfill stainless demand or will HZM still be pumping out Nickel in 50 years using all the resources!
Serra do Tapa Deposit
Mineral Resources, in the Measured and Indicated category, are 70.3 million tonnes grading 1.22% nickel (at 0.9% nickel cut off);
ยท; A significant portion of high grade saprolite within the deposit is amenable to the Rotary Kiln Electric Furnace ('RKEF') process route to produce ferro-nickel, potentially providing a further high-grade feed source for the Araguaia project;
I completely agree AIM, I ran out of characters as you can see by my sign off haha. Vale done so much of the work already and I cannot believe they let this project go to be honest and you are right, the entire Vermelho resource is in the reserves a whopping 141.3Mt. Once this funding goes through and we get an update regarding that, the risk goes down and the market will surely have to value this higher as a result. I've skimmed through the technical reports and it's clear there has been a lot of groundwork already put in. We just need the money haha
Also whilst it may look like there is only a PFS for Vermelho, Vale spent $200m proving it up and doing studies to DFS level but for a different size project. The entire resource is almost all in reserves category.
Not only has Araguaia had PFS but also a DFS stage 1 and extended for a Stage 2 (2nd RKEF line to double production). It is apt that you should only mention 'reserves' which I think is very high in comparison to the studies' ore used in the calculations vs only using measured for example. This gives a greater level of confidence to invest.
Ok i'll do an introduction post here and maybe add to the picture if I find anything later on.
So first things first Horizonte own two 100% Nickel projects near the Carajas mineral province in Brazil; Araguaia and Vermelho. Araguaia is a ferronickel project and has reserves of 27.29Mt at 1.69% Ni whilst Vermelho is a nickel-cobalt project with reserves at 141.3Mt at 0.91% Ni (all taken from HZM website). Araguaia is located just south of the Carajas whilst Vermelho is located within the Carajas province. HZM have already completed pre-feasibility studies for both projects which will be open pit mined. So they are further along the exploration chain than other junior's out there including GGP which I and some others here are investors of. Open pit mining is significantly cheaper than underground and as per the horizonte May 2020 presentation are in the lower percentile for Nickel projects globally. So economically this looks attractive
Onto the geology. Vermelho is located in the Carajas Mineral province whilst Araguaia is located in the Araguaia fold belt. The Araguaia fold belt is Neoproterozoic in age and thought to result from collision between two cratons. The Carajas mineral province is very famous among geologists because it hosts exceptional mineralization and a wide variety of deposit types including; Nickel laterites (our stuff), Cu-Au systems (mainly IOCG) and iron deposits. The iron deposits are actually what makes the area famous because it contains one of the largest supplies in the world in the form of banded iron formations but I digress. The Carajas is located in the Amazonian craton, which if you know the geologic column is Archaean in age (approximately 3 billion years old). The Carajas is split into two domains; the Carajas domain in the North and the Rio Maria domain in the south.
I don't have enough space to go into the stratigraphy on this post as it's pretty complicated given the age of these rocks. However luckily for us both deposits rely on the same rock type just at different ages. Both Vermelho and Araguaia are located above what we call mafic-ultramafic intrusions. These are rocks that are very iron and magnesium rich and silicon and aluminium poor. What they also tend to have are increased concentrations of Nickel, Cobalt, Chromium etc based on the processes that form them and their mineral composition. Both deposit types are nickel laterites. These are deposits which form because of a large weathering profile and tend to be located in warm, tropical climates (i.e the amazon). There are three main parts to a laterite profile; the saprolite layer, transitional layer and the limonite layer. Basically extensive weathering of the ultramafic rocks at the bottom over time and enabling a soil/regolith above to become enriched in Nickel. Hence the minerals of interest are normally varieties of clay. These types of deposit are the world's most important supply of Nickel (60%+) and we have two of them.
Thanks
Ma
Hi Magic
I have a big investment in HZM but also GGP/SOLG - have slimmed my portfolio down to a limited amount now as think the GGP/SOLG investments will allow me and my family to be secure and me to be able to support more charitable endeavours
My other big investment is in TILS/TLSA who are starting clinical trials in Brasil soon with Formulab
Very interested in your view - Kind Regards Sporty
Hi Magic. For the reasons you are probably aware though invested here & GGP choose to post here. But do read that board, and for those into HZM but not GGP. There are amongst the tens of rampers, de dampers, fantasist and fatalists. Not to mention a very weird tea party / cravat wearing n drinking club....about half a dozen people whose views hold a lot of weight for me. Magic as a skilled Geologist is one... so IMHO if you have objective thoughts on the HZM areas I for one would be very interested to hear them. Rgrds Strumm
Hi everyone. I'm a little way through the reading on the two areas of interest for Horizonte. Due to time and having to prioritize my own studies, I'm not sure when I will do a video on the area but would like to get one out in the near future. However I'd quite like to share a post on here to those already interested about the geology and mineral system we have in Brazil. I'll post below if you would like?