Horizonte Minerals Regulatory News (HZM)

19 Mar 2009 07:00



Horizonte Minerals plc / Index: AIM / Epic: HZM / Sector: Mining

19th March 2009

Horizonte Minerals plc ('Horizonte' or 'the Company')

Expands the Lontra Nickel Laterite Project 

Horizonte, the AIM quoted exploration and development company focused on Brazil and Peru, is pleased to announce further positive diamond drilling results from the laterite nickel discovery at its Lontra Project ('the Lontra Project') in the Carajas Mineral Province of Northern Brazil. 

Overview: 

Results expand the resource potential of the new discovery located in a developing nickel district

Best intersections include 13.83 metres grading 1.4 %Ni, 9.22 metres grading 1.47% Ni, 13.51 metres grading 1.17% Ni and 8.86 metres 1.31% Ni

To date only around 35% of  the nickel anomalies have been drilled

Consistent thickness and grade of nickel mineralisation reported

Horizonte CEO Jeremy Martin said, "These results from the Raimundo target along with the infill drilling on the Northern target undertaken by the Company further add to the near-surface resource tonnage potential of the Lontra Project.  To date only about 35% of the prospective area has been drill tested so there is significant scope for upside. Current work is focusing on the resource calculation and initial metallurgical test work to see if Lontra is amenable to low cost heap leaching.

"The Lontra Project is serviced by good infrastructure in the district and is located to the south of Xstrata's Serra do Tapa deposit, with a current resource of 73.3 Mt grading 1.5% nickel and adjacent to Teck's Araguaia project.  The Board is confident that with further development, an improvement in nickel prices and normalisation of global markets the Company will have a very marketable asset." 

Detailed Information 

The Raimundo target area comprises two principal anomalies, a central area covering approximately 1.6km by 0.5km wide and a higher grade anomaly to the east approximately 0.7km by 0.3km. Diamond drilling was undertaken with vertical holes on 200m by 200m grid pattern and reduced down to 100m by 100m centres of the eastern anomaly. The holes ranged from 15m to 30m in depth but all holes were drilled to sufficient depth to encounter fresh rock. The nickel laterite development formed over the underlying ultramafic rocks within this target area has returned good consistent thickness of nickel mineralisation with best interval DD041 returning 13.83m grading 1.4% nickel. 

To date a total of 31 holes were drilled on the Northern Target, the target areas returned good continuous nickel grades averaging 1.37% nickel over 6.78 metres using a 1% cut off grade. The latest holes were designed to infill the initial wide spaced holes and provide broad drill coverage on 200m by 200m centres, all holes were vertical.

The table of results below shows recent drill holes over the Northern and Raimundo targets using a 0.8% Ni cut-off.

Additional Untested Targets

Two additional targets in the southern portion of the project area remain untested, those being the Morro and Southern Anomaly. The Morro Anomaly is defined by anomalous nickel in soils and auger drilling and covers an area of approximately 0.5km by 0.8km. The larger Southern Anomaly covers an area approximately 2.8km by 1km which returned auger drill results greater than 1% nickel. These targets will be drilled in Q2 2009.

Background to the project

The Lontra Project is situated in the Araguaia mobile belt, which flanks the eastern margin of the Carajas Mineral Province of northern Brazil. This is circa 80km south of the major lateritic Ni project operated by Xstrata at Serra da Tapa and Vale dos Sonhos nickel laterite projects (inferred resource of 73Mt at 1.5% Ni) and 7km northwest of the adjoining Vila Oito Ni project, where Teck Cominco currently has a drilling programme underway.

Horizonte initially identified a number of priority Ni targets at the Lontra Project following a regional stream sediment sampling programme in the first quarter of 2007. This was followed by regional soil sample programmes over the seven target areas, which identified the drill targets where first phase diamond drilling is programme is underway.  The project is owned 50% by Horizonte with local Brazilian entity - LGA Mineracao e Siderugia holding the other 50% who are fully funding their 50% exploration expenditure.

Sampling, assaying, and QA/QC

Procedures adopted by Horizonte in the collection, preparation and storage of samples from the diamond drilling programme, conform to industry-wide best practice and with chain of custody being observed for all samples.  Analysis is undertaken by SGS at its laboratories in Belho Horizonte, Brazil, and the Company maintains QA/QC on all analytical work via the inclusion of certified reference materials and field duplicates and blanks.  In addition 10% of all samples are sent for re-analysis at ALS Chemex in Vancouver an independent laboratory to ensure QA/QC of SGS.

The above information has been reviewed and verified by Mr. Jeremy Martin, a Director and Chief Executive of Horizonte, for the purposes of the Guidance Note for Mining, Oil and Gas Companies issued by the London Stock Exchange in March 2006. Mr. Martin, with seven years of mining and management experience, graduated with a degree in geology from the Camborne School of Mines, and an MSc in mineral exploration from the University of Leicester and is a member in good standing with the Society of Economic Geologists and the Institute of Mining Analysts.

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For further information visit www.horizonteminerals.com or contact:

Notes:

Horizonte Minerals plc is an AIM quoted exploration and development company with an extensive portfolio of gold, nickel, silver, lead and zinc projects in producing mineral districts in Brazil and Peru. It has three primary projects working towards a resource definition, including the 22,556 hectare Lontra nickel project situated in the Araguaia mobile belt, which flanks the eastern margin of the Carajas Mineral Province of northern Brazil, the silver-zinc-lead project El Aguilia in Peru, located in the historic mining district of Cerro de Pasco and the 2,147 hectare Pararapa gold property located in the Department of Arequipa, southern Peru, which it is advancing in tandem with Barrick Gold. In addition it has a generative pipeline of early stage projects in development including 300 sq km Falcao gold project located near the Lontra project.

The Company is focused on generating and rapidly advancing exploration projects before joint venturing them with a major mining company to further develop the projects and provide mid-term cash flow, which can be fed back into the business and its other projects. This model was initially proven in December 2007 when Horizonte signed an option agreement with Troy Resources (ASX:TRY), to operate and develop its Brazilian Tangara gold project by expending a total US$2.8 million on exploration and development as well as a royalty payment on production.