Horizonte Minerals Regulatory News (HZM)

30 Apr 2007 08:45

Horizonte Minerals PLC30 April 2007 Horizonte Minerals plc / Index: AIM / Epic: HMZ / Sector: Mining 30 April 2007 Horizonte Minerals plc ('Horizonte' or 'the Company') Preliminary Results Horizonte Minerals plc, the AIM listed exploration and development companyfocused on Brazil and Peru, is pleased to announce its results for the yearended 31 December 2006. Overview • Admitted to AIM in May 2006, raising £2.3 million to focus on the discovery and development of world-class precious and base metal projects in South America. • Multiple new gold targets defined in Brazil. • Proven model of identifying quality early stage projects before securing a partner to assume high financial exposure of development and production. • Defined large scale mineralised gold system at the Tangara project in the Carajas Mineral District, Brazil - drilling returned: 36.25 metres averaging 2.54 g/t Au from 36.25 metres downhole, including 6.75 metres grading 9.8 g/t Au and a second interval of 2 metres grading 6.0 g/t Au • Defined high grade vein and replacement style mineralisation at the El Aguila silver-lead-zinc project in the Cerro de Pasco District Peru - the 11 holes drilled returned economic intersections and further targets have been defined. • Acquired 4,660 hectare Crixas nickel project on the tightly held Archean aged Crixas greenstone belt - multiple nickel-copper anomalies defined. • Acquired 25,556 hectare land package located 80 km south of a major nickel deposit owned by Xstrata - nickel targets defined for follow-up. • Pipeline of projects being developed by highly experienced operational team. Chairman's Statement It gives me great pleasure to address you in what is Horizonte's maiden annualreport to shareholders. The Company, which listed in May 2006, has progressedsignificantly in a short time and has achieved its key objectives as set out inthe AIM listing document. Importantly, we completed the successful critical first pass drilling at theflagship Tangara and El Aguila projects, which contributed considerably to ourunderstanding of the mineral systems and increased their value as the drillingrevealed economic grades and demonstrated size potential of the systems. New targets have also been defined within the Tangara project area, notably atPampeana, where detailed work around the Gerson Zone indicated the potential forcontinuity of the mineralisation defined in the discovery drill hole 4, whichreturned 36.25 metres averaging 2.54 g/t Au. At Pampeana, located 10 kilometressouth-east of the Malvinas target, we also identified high-grade quartz veinsgold mineralisation e.g. 35.62 g/t Au. Horizonte is developing these projects toa point whereby, in line with the Company's strategy, it will aim to sign apartner keen to be involved in early stage quality projects with the potentialfor major gold +/- copper deposits. An example of this was our joint venturewith Troy Resources on the Goias Velho project. At El Aguila in Peru, we intersected excellent grades and widths in the PacosZone in the first pass drilling e.g. HM-DDH-3 11.08 m grading 5.53 oz/t Ag,3.06% Pb and 2.78% Zn from 28.97m down hole. Subsequent mapping, sampling andground geophysics have identified further potential for silver-zinc-leadmineralisation away from the Pacos Hill zone. The results from the Zona Sur aretantalising, with strong coincidence of mineralisation, high grade geochemistryand ground geophysics. The average grade of seven channel samples taken along230 metres extent of the Veta Marlene returned 0.24g/t Au, 10.24 oz/t Ag, 4% Pband 5.6% Zn. The early results have attracted considerable attention from mininggroups, especially given El Aguila's strategic location in one of the world'spremier poly-metallic mineral belts. I am sure it will be only a matter of timebefore Horizonte will have a significant partner on this project. Horizonte has been quick to add to its original portfolio after listing - Crixasand Lontra are two such projects. The Lontra project is an example of theability of your Company to acquire ground in emerging mineral belts. Thepresence of economic grades in samples e.g. 1.59% Ni attests to the potential ofthis ground holding. Your Company is continually reviewing many submittals that our local manager,Antonio Valerio, is able to source. In addition, Horizonte's in-house generativeprogramme is looking at a number of new areas with a view to gaining asignificant early-entry competitive advantage. I cannot stress enough, especially after visits to the Vancouver Round-Upconference and the PDAC in Toronto, the critical need for new projects and moreespecially new generative projects within the exploration and mining sector. Aconsiderable amount of funds raised recently have been put into "dusted off"projects, new to the investor but not to the mining industry. The concept ofadding value to such projects is finite, as few go on to become productivemining projects. The only way to add real value in the exploration and development ('E&D') sectoris by the discovery of new mineralisation, which has the potential in terms ofscale, grade, mineability, political risk and environmental risk, etc to be anew mine. This is the principle aim of Horizonte. At each point in an E&D programme the management and board must assess theongoing results with this in mind. It is crucial that investors understand thedifference between measured, indicated and inferred resources and appreciatethat these may not have any economic value in certain circumstances. Thedesperation of some companies to show value by publishing inferred resource43-101 or JORC compliant is unacceptable. Inferred resources are barely provenresources in the ground - the lowest level of certainty and confidence. Yet wesee companies undertaking "scoping studies" on inferred resources, which reallyin terms of value are worthless. Mining is however not only about projects but also people. The availability andretention of quality experienced personnel is a major issue in the explorationand mining industry. I believe Horizonte is blessed with professional,experienced management who are incentivised through their equity holding in theCompany. The technical team supported by the board is well placed for successand I believe has already shown the ability to discover and add value from a lowcost base and will continue to do so to enhance shareholder value. 2007 will be a challenging year and one I am sure will witness significantdevelopments in Horizonte. Finally I would like to take this opportunity toextend my thanks to the board and to you as shareholders for your continuingsupport. David J. HallChairman30 April 2007 Consolidated Income StatementFor the year ended 31 December 2006 Year ended Period 14 June 2005 - 31 December 2006 31 December 2005 Revenue - - Cost of Sales - - Gross Profit - - Administration Expenses (240,475) (73,897) Gain/(Loss) on Foreign Exchange (6,580) - Loss from Operations (247,055) (73,897) Finance Income 58,999 2,960 Loss before Taxation (188,056) (70,937) Taxation - - Retained Loss for the Year attributable (188,056) (70,937)to Equity Shareholders Loss per Share (pence) - Basic and (0.76) (0.41)Diluted Consolidated Balance SheetAs at 31 December 2006 31 December 31 December 2006 2005ASSETS Non-Current Assets Intangible Assets 1,445,195 152,770Property, Plant & Equipment 972 - 1,446,167 152,770 Current AssetsTrade and Other Receivables 2,793 467Cash and Cash Equivalents 1,427,044 499,195 1,429,837 499,662 2,876,004 652,432EQUITY AND LIABILITIES Equity Issued Capital 295,077 218,410Share Premium 3,793,147 1,965,690Other Reserves (1,048,100) (1,548,100)Retained Earnings (255,687) (70,937) Total Equity 2,784,437 565,063 Current Liabilities Borrowings - 55,580Trade and Other Payables 91,567 31,789Total Liabilities 91,567 87,369 Total Equity and Liabilities 2,876,004 652,432 Consolidated Statement of Changes in Equity Share Share Premium Retained Merger Total Capital Reserve Reserve Balance on Incorporation 2 - - - 2Issue of Ordinary Shares 118,408 570,690 - - 689,098Issue Costs - (53,100) - - (53,100)Merger Reserve 100,000 1,448,411 - (1,548,100) -Loss for the Period - - (70,937) - (70,937) As at 31 December 2005 and 1 218,410 (1,965,690) (70,937) (1,548,100) 565,063January 2006 Issue of Ordinary Shares 76,667 2,223,333 - - 2,300,000Issuance Costs - (395,876) - - (395,876)Movement on Merger Reserve - - - 500,000 500,000Share options -value of - - 3,306 - 3,306employee servicesLoss for the period - - (188,056) - (188,056) As at 31 December 2006 295,077 3,793,147 (255,687) (1,048,100) 2,784,437 Consolidated Cash Flow StatementFor year ended 31 December 2006 Consolidated Cash flow Statement Year ended 31 Period 14-June December 2006 2005 - 31 December 2005Cash flows from operating activities Loss before taxation (188,056) (70,937)Interest income (58,999) (2,960)Employee share options 3,306 -Depreciation 254 - Operating loss before changes in working capital (243,495) (73,897) Increase in trade and other receivables (2,326) (467)Increase in trade and other payables 59,778 31,789 Net cash outflow from operating activities (186,043) (42,575) Cashflows from investing activities Purchase of intangible assets (792,425) (152,770)Purchase of property, plant and equipment (1,226) -Interest received 58,999 2,960 Net cash used in investing activities (734,652) (149,810) Cash flows from financing activities Proceeds from issue of ordinary shares 1,904,124 636,000Change in short term borrowings (55,580) 55,580Net cash inflow from financing activities 1,848,544 691,580 Net increase in cash and cash equivalents 927,849 499,195 Cash and cash equivalents at beginning of year 499,195 - Cash and cash equivalent at end of the year 1,427,044 499,195 Consisting of:Group cash 1,427,044 499,195 Note: During the period £500,000 of intangible assets were purchased by the issue of 10 million shares. * * ENDS * * For further information visit www.horizonteminerals.com or contact: Jeremy Martin/David Hall Horizonte Minerals plc Tel: 020 7495 5446David Paxton Hichens Harrison Tel: 020 7382 7785Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477John Frain/Fergal Meegan Davy Tel: +353 1 679 6363 Notes to Editors: Horizonte Minerals Plc is an AIM listed mineral resources exploration groupfocused on the discovery, appraisal and development of gold and base metaldeposits in Brazil and Peru. The Company has two gold exploration projects inBrazil, and one silver-zinc-lead project in Peru. The two Brazilian goldprojects, Tangara and Falcao, are located to the south of the highly prospectiveCarajas Mineral Province. Both projects cover an area of approximately 300 sq kmand are centred over greenstone belts, with known gold mineralisation. The scaleof these project areas, the overall aerial extent of the mineralised system andthe high density and magnitude of related gold anomalies (identified in riversediments, surface soils and rocks), indicate the potential for multiple depositdiscoveries. The silver-zinc-lead project is located in the historic mining district of Cerrode Pasco in Central Peru. Sampling and limited historic drilling on this projecthas demonstrated the high grade potential of this project. The Company has ajoint venture with Australian gold producer Troy Resources NL's 70% owned localsubsidiary Sertao Mineracao Ltda to advance its Goias Velho gold explorationproject in Brazil. This information is provided by RNS The company news service from the London Stock Exchange