Horizonte Minerals Plc, (AIM:HZM)(TSX:HZM) ('Horizonte' or 'the Company') the nickel development company focused in Brazil, is pleased to announce that it has completed the tender process and has awarded the contracts for the Feasibility Study ('FS') for its 100%-owned Araguaia nickel project ('Araguaia' or 'the Project').
The aim of the FS is to deliver the most economically robust production scenario to produce 14,500 tonnes per annum ('tpa') of nickel using the proven rotary kiln electric furnace technology ('RKEF'). The Company's strategy is to position itself as one of the lowest cost nickel producers globally. The FS is targeted for completion by the end of 2017 and the Company is fully funded through to completion of the FS.
- Contracts awarded for Araguaia Feasibility Study to leading consultants including:
- Worley Parsons Group ('WorleyParsons') to undertake the process engineering
- Snowden Mining Industry Consultants ('Snowden') to undertake the mine planning, Mineral Resource Estimate ('MRE') and the reserve estimate
- Environmental Resources Management ('ERM') to undertake the hydrogeology and the environmental and social permitting
- Other specialised consulting groups have been appointed for additional sections of the FS including groups involved in the Pre-Feasibility Study
- Araguaia Feasibility Study has formally commenced with project kick off meeting being held on site during the first week of March with a number of work streams already underway
- On schedule to deliver the FS by end of 2017
Horizonte CEO Jeremy Martin said, "The Company's aim is to build a best-in-class ferronickel operation and to achieve this we need to deliver a robust FS with capital and opex costs to +/-10% with a high level of engineering completed allowing direct flow into the implementation phase. The tender and selection process has been an involved exercise as our aim was to contract leading consulting groups with a strong track record in ferronickel and also project delivery experience in Brazil.
"We are delighted with the strong FS team we have created for Araguaia with WorleyParsons as the lead engineering group who have been heavily involved in Vale's new S11D iron ore project in Brazil, combined with Snowden on the mining and resources side who bring continuity from their work on the Pre-Feasibility Study. ERM who are a leading environmental and social consulting group with extensive Brazilian experience will manage the permitting process and work towards international banking standards for sustainability. We are also pleased to continue successful partnerships with Prime Resources who will manage our water and waste infrastructure components. In addition we have appointed specialised Brazilian groups to cover the power, logistics and road upgrades.
"In addition to our recent appointment of a FS Manager for Araguaia, we have strengthened our in-house team to ensure that we retain control over all FS deliverables and to facilitate effective communication between the multidisciplinary groups. I am confident that we have built an excellent team structure and FS roadmap to deliver on our objectives by the end of the year so that we continue to create value for our shareholders."