LONDON (Alliance News) - Horizonte Minerals PLC said on Thursday the final results of its feasibility study for Araguaia are being prepared as it progresses the development of the nickel project.
"I am pleased to provide an operational update on our progress on a number of key workstreams as we move towards completion of the feasibility study on our 100% owned Araguaia nickel project, representing an important milestone in the transition of the company from an explorer to a developer," said Horizonte Chief Executive Jeremy Martin.
The final results of the Araguaia 43-101 feasibility study are being prepared, and are expected to be announced in October.
The feasibility study for Araguaia, located in Brazil, is designed around an open pit mining operation targeting 900,000 tonnes per annum of ore feeding a central processing Rotary Kiln Electric Furnace smelting facility, and designed to produce 14,500 tonnes of nickel per year contained in 52,000 tonnes of ferronickel.
Optimisation around the plant layout, engineering design and process flow sheet are now complete, the company said, with the plant design modified for the potential expansion of a second Rotary Kiln Electric Furnace process line in the future.
A water permit has been obtained for full-scale operation at Araguaia, and a final capital expenditure estimate for the project is being prepared for "internal review".
Horizonte said it had a cash position of GBP8.9 million at June 30.
"The company has a strong cash position to allow us to deliver the key milestones going forward. It is an exciting time for the company and we look forward to updating the market on the company's developments as we move through the next phase of development at Araguaia, in addition to providing updates on the Vermelho Ni-Co project," said Martin.
Shares in the company were down 3.4% at 3.53 pence on Thursday.
Horizonte Minerals (HZM)