Brazil Exploration Update

18 Jan 2007 07:00

Horizonte Minerals PLC18 January 2007 Horizonte Minerals plc / Index: AIM / Epic: HMZ / Sector: Mining 18 January 2007 Horizonte Minerals plc ('Horizonte' or 'the Company') Brazil Exploration Update Overview • Work focussed on 32,890 hectare Tangara and 29,717 hectare Falcao projects • Tangara drill hole DDH-4 returns 6.75m grading 9.8 g/t Au within a 35m zone averaging 2.5 g/t Au • Newly identified 'Freda Trend' soil anomaly has a strike length of 1,300m • Follow-up work on Tangara defines four new regional targets • Field work on the Falcao copper-gold project to commence to define drill targets Horizonte Minerals plc, the AIM listed exploration and development companyfocused on Brazil and Peru, is pleased to provide an update on its two advancedBrazilian projects for 2007. Tangara The Tangara gold project comprises 32,890 hectares (330 sq km) covering thewestern extension of the Achaean, Identidade Greenstone belt located in thesouthern part of the world class Carajas Mineral Province. Work was initiallyfocussed on the 6km long MA anomaly, with encouraging results obtained fromDDH-4 with 2.54 g/t Au over 36.25m with anomalous zinc up to 1.0% and silver upto 85 g/t. The remaining holes drilled over an area of 2 sq km returnedsub-economic mineralisation but assisted in defining the focus of the largescale mineralised system. DDH-5, drilled 2000m west of DHH-4, returned anomalous gold with grades of up to3.9 g/t Au over 2m from 14m down hole. DDH-7, 8 and 9 also drilled 2000m west ofDHH-4 on two sub-parallel trends returned anomalous gold and zinc but themineralisation appears distal to the centre of the system. DDH-10 and 11 weredrilled 800m to the east to test the Barbossa Pit area and though weak in goldare highly anomalous in zinc with DDH 11 having extensive intervals of 0.1%. Afull table of all results is included at the end of the release. Detailed soils over the newly identified "Freda Trend" associated with DDH-4 hasdefined a >0.1 g/t Au anomaly over 1,300m strike and up to 120m wide. This areawill be the focus of the second phase of drilling, working out from DDH-4, whichwill commence in March 2007. The area is attracting considerable interest from major mining companies and theadjacent exploration claims to the east are held by the Brazilian subsidiariesof Barrick Gold Corp, Corporacion Nacional del Cobre ('Codelco') and TeckCominco Ltd. Troy Resources recently paid US$10m to purchase the Andorinhasdeposit on the southern arm of the greenstone belt. This has a Probable Reserveof 594,000T at 6.6g/t for 126,000 ozs Au. Troy plan to fast track development ofthis mine, which lies just 35km south east of the MA target at Tangara. Follow-up stream sediment sampling has defined four new regional target areaswithin the 32km extent of the Tangara land holding; Pampeana, MA South, MA Eastand MA North. Follow-up soil grid sampling and detailed mapping has beencompleted or is underway, the results of which are awaited. Subject tosatisfactory results these new target areas will be drill tested as part of theMarch programme. Falcao The Falcao project is located 175km south of the Tangara project, covering anarea of circa 300 sq km. Its focus was a BHP grassroots discovery identified byregional stream sediment sampling, which defined several sample locationsrunning anomalous gold, copper and silver values, covering a 50 sq km land area.The stream sediment programme was followed-up by a regional soil grid and ashallow auger drill programme on an 800m by 200m grid, which defined the mainarea of interest as an open 6km long anomalous gold/copper and zinc/silver/goldzone. Horizonte will commence a detailed soil grid and auger programme within thebroad anomalous zone to define follow up drill targets. Horizonte CEO Jeremy Martin said: "2007 is going to be an exciting and activeyear for the Company. The wide spaced drilling completed at Tangara last yearhas allowed us to develop a better understanding of the large mineralisedsystem. We intend to step out from DDH-4, which returned very encouragingvalues, and drill test the intrusive contact. The zone is open for 1,300m andwe have a well defined gold in soil anomaly associated with the contact zone.Importantly, the regional work has outlined four new target areas within theTangara land holding and subject to the results of the follow up work will alsobe tested in the March drill programme." Sampling, assaying, and QA/QC Procedures adopted by Horizonte in the collection, preparation and storage ofsamples from the auger drilling programme, conform to industry-wide bestpractice and with chain of custody being observed for all samples. Analysis isundertaken by ALS Labs at its laboratories in Vancouver, Canada, and the Companymaintains QA/QC on all analytical work via the inclusion of certified referencematerials and field duplicates and blanks, in addition to monitoring of thelaboratory's own internal check-analyses. The above information has been reviewed and verified by Mr. Jeremy Martin, aDirector and Chief Executive of Horizonte, for the purposes of the Guidance Notefor Mining, Oil and Gas Companies issued by the London Stock Exchange in March2006. Mr. Martin, with six years of mining and management experience, graduatedwith a degree in geology from the Camborne School of Mines, and an MSc inmineral exploration from the University of Leicester and is a member in goodstanding with the Society of Economic Geologists and the Institute of MiningAnalysts. Hole From To Interval Au FA (g/t) Zn Ag (g/t) (m) (m) (m) (+0.5g/t) (+0.1%) (+5g/t)GA-DDH01 0 4 4 1.1 0.3% 4 8 4 0.2% 18 19.6 1.6 6.6 19.6 21.7 2.1 0.6 21.7 29.5 7.8 0.1% 29.5 31.15 1.65 0.3% 5.7 57 58.31 1.31 0.1% 58.31 60.02 1.71 0.7% 72 74 2 0.1% 80.4 82 1.6 0.1% 88 90 2 0.1%TGA-DDH02 0 2 2 1.0 6 26 20 0.2% 62 72 10 0.1% 80 82 2 0.2%TGA-DDH03 0 2 2 1.2 2 6 4 0.5 8 18 10 0.4% 18 20 2 0.2 0.2% 20 24 4 0.2% 28 30 2 0.1% 36 37.9 1.9 0.2% 48 50 2 0.1% 50 52 2 >1% 52 54 2 0.1% 58 60 2 0.1% 86 95 9 0.6TGA-DDH04 0 0.75 0.75 0.9 6 7.05 1.05 0.1% 34.1 36.25 2.15 0.3% 36.25 38.1 1.85 22.3 1.0% 10.8 38.1 40 1.9 5.7 1.0% 10.9 40 41.51 1.51 7.0 0.2% 16.2 41.51 43 1.49 2.3 43 45 2 0.5 59 61 2 0.3% 61 63 2 6.0 1.0% 37.8 65 67 2 1.0% 10.4 67 71.38 4.38 1.4 0.3% 39.32 71.38 73 1.62 8.5 84 87 3 0.1%TGA-DDH05 0 2 2 1.1 14 16 2 3.9 20 22 2 1.8 26 28 2 0.7 40.45 42 1.55 1.2 71.5 73.5 2 0.8 73.5 75 1.5 3.3 80 84 4 0.7 0.6655TGA-DDH06 39.25 44 4.75 0.7TGA-DDH07 28 40 12 0.2%TGA-DDH08 16 30 14 0.1% 46 48 2 0.6 68 70 2 0.6 97.44 100.1 2.66 1.1 100.1 102 1.9 1.0TGA-DDH09 2 4 2 0.5 34 36 2 1.2 46 48 2 1.2 62 64 2 1.1 90 92 2 0.9 106 108 2 0.6 11.1TGA-DDH10 0 2 2 0.2% 2 4 2 0.7 8 20 12 0.1% 30 32 2 0.1% 37.75 39.07 1.32 0.5 39.07 40.53 1.46 0.2%TGA-DDH11 2 4 2 0.5 44 45.46 1.46 0.1% 49 59 10 0.2% 67.5 85.5 18 0.2% 92 94 2 0.1% 100.45 102.46 2.01 0.2% 102.46 104.48 2.02 0.4% 128 129.4 1.4 0.2% * * 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