Last checked at 23 Aug 2010 07:00
Horizonte Minerals plc / Index: AIM / Epic: HZM / Sector: Mining
23 August 2010
Horizonte Minerals plc ('Horizonte' or 'the Company')
Signs Agreement with AngloGold Ashanti on the Falcao Gold Project
Horizonte, the AIM quoted exploration and development company focused on Brazil, is pleased to announce that it has signed a US$4.5 million earn in agreement on its 100% owned Falcao gold project, located in the Carajas Mineral Province of northern Brazil, with major gold producer and exploration partner, AngloGold Ashanti Limited ('AngloGold').
Highlights
·; AngloGold can earn into 51% of the Falcao project by spending US$4.5 million on exploration and development over three years
·; First year cash commitment of US$900,000 on exploration funding
·; Fast track drill programme to commence to test the resource potential of the project
·; Additional funding of US$1.6 million in the second year and US$2 million in the third year
·; Upon earning into 51%, the Falcao project will convert into a Joint Venture and AngloGold may elect to earn an additional 19% to increase its participating share to 70% by funding a Pre-Feasibility Study
Horizonte CEO Jeremy Martin said, "This is yet another exciting transaction for Horizonte. The Falcao project is a significant gold anomaly in the southern part of the Carajas Province defined by previous exploration work carried out on the property. There are multiple gold intersections from wide spaced historic drilling undertaken by the previous operator and this data supports the model that Falcao has the potential to host a major gold deposit. The earn-in agreement with AngloGold will allow a fast track drill programme to test the resource potential of the project.
"This transaction with AngloGold now provides Horizonte with two active partnerships with the world's third largest gold producer: the Strategic Alliance signed in September 2009 focused on the discovery of new gold targets as part of a regional exploration programme; and this new earn in agreement for Falcao with a US$4.5 million exploration budget. The transaction further strengthens the link between Horizonte and AngloGold as a preferred exploration partner in Brazil and we very much look forward to working with the Anglo team going forward.
"In addition, with the recent acquisition of the Araguaia Nickel project from Teck Resources, we will have multiple drilling programmes underway, all delivering solid project milestones which we anticipate will result in significant value for our shareholders as the Company continues to grow."
The Falcao Project Earn In
The 100% owned Falcao gold project is located in the southern part of the Carajas Province, north-central Brazil. Falcao was a BHP Billiton ('BHP') grassroots discovery that was identified by regional stream sediment sampling which defined several sample locations running anomalous gold, copper and silver values, covering a 50 km2 land area. The stream sediment programme was followed-up by a regional soil grid and shallow auger drill programme on a 800m by 200m grid which defined the main area of interest as an open 6km long anomalous gold/copper and zinc/silver/gold zone.
BHP undertook a limited wide spaced reverse circulation ('RC') drilling campaign in September 1998. The final RC drill holes were located on a wide (2,400m by 400m) spacing along the 6km anomalous trend. Despite the wide drill hole spacing a number of highly anomalous intersections were drilled including 9m at 4.8g/t gold from surface, 3m at 4g/t gold from 57m, and 24m at 0.5g/t gold including 3m at 2.8g/t gold. This latter result was from a hole which was drilled outside the main soil geochemical anomaly.
Under the terms of the earn in agreement, AngloGold has the right to earn into a 51% participating interest in the project by funding the sum of US$4.5 million on project expenditure within a 36 month period from the commencement date. The first year expenditure will be US$900,000 and, in the second year, a further US$1.6 million, followed by a final amount in year three of US$2 million. Horizonte will manage the project exploration during the earn-in period.
Upon successfully earning into 51% of the project, AngloGold may elect, in its absolute discretion, to earn into an additional 19% participating interest in the Joint Venture (to bring its participating share to 70%) by sole funding and completing a pre-feasibility study within three years of the vesting date.
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 eight 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 Association of Mining Analysts.
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For further information visit www.horizonteminerals.com or contact:
| Jeremy Martin | Horizonte Minerals plc | Tel: 020 7016 9132 |
| David Hall | Horizonte Minerals plc | Tel: 020 7016 9132 |
| Richard Baty | Westhouse Securities Limited | Tel: 020 7601 6100 |
| Martin Davison | Westhouse Securities Limited | Tel: 020 7601 6100 |
| Hugo de Salis | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
| Felicity Edwards | St Brides Media & Finance Ltd | Tel: 020 7236 1177 |
Notes:
Horizonte Minerals plc is an AIM quoted exploration and development company with a portfolio of nickel and gold projects in producing mineral districts in Brazil. The Company is focused 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 now has two committed major mining partners: Teck Resources Limited ('Teck'), a strategic 50 per cent. shareholder in the Company and AngloGold Ashanti Limited, with a US$5.3 million exploration alliance to generate and develop new gold targets in Brazil.
Horizonte owns 100 per cent. of the advanced Araguaia nickel project and the adjacent Lontra nickel project both in the Carajás mineral district of northern Brazil, which combined have the potential to define a plus 100 million tonne resource with grades comparable to other world-class projects in northern Brazil. It is Horizonte's intention to fast-track development and deliver a JORC compliant/43-101 nickel resource in early 2011.
Additionally, Horizonte signed a US$2.8 million option agreement to advance the Tangara gold project, situated in the Araguaia mobile belt in the Carajas Mineral Province of northern Brazil, with Troy Resources in December 2007. The project is currently being advanced towards a resource definition.