LONDON, June 8, 2016 /CNW/
- Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) ('Horizonte' or
'the Company') is pleased to announce that is has been granted
a Preliminary Environmental Licence ('LP'), for the mining and
beneficiation plant to produce ferronickel, for its Araguaia Nickel
Project ('Araguaia') by the Brazilian Pará State Environmental
Agency ('SEMAS'). The LP, granted to Horizonte's wholly owned
subsidiary, Araguaia Níquel Mineração Ltda., is a significant
milestone which demonstrates the viability of Araguaia and
represents the State Government approval for the planned
Project.
Overview
- The granting of Preliminary Licence demonstrates Pará State
government's confidence in the credibility and viability of the
Araguaia Nickel Project
- Araguaia viewed as a key economic driver for the southern
part of Pará by the State government
- As a result of the award of the LP, Horizonte can now
progress work towards the Installation Licence, permitting
construction of Araguaia
CEO Jeremy Martin
commented, "This major milestone brings Horizonte another step
closer to developing Brazil's next
major nickel mine. Following 24 months of work the award of the
Preliminary Licence demonstrates the Pará State Government's
support for the development of the Araguaia Nickel
Project.
"The project has the potential to provide approximately 1,100
jobs in the construction phase, and around 500 jobs during the
operational phase of the mine; as a result the Pará State
Government considers Araguaia to be a key economic driver for the
southern part of the State. We have also received strong
community support for the project as evidenced in the 2015 Public
Hearing in Conceição do Araguaia.
"The award of the LP is timely as we are in the final stages of
preparing a new Pre-Feasibility Study. This new PFS will
include a revised Mineral Resource covering the recently acquired
Glencore project combined with infill resource drilling results,
data from the full scale metallurgical pilot plant campaign
completed in Q3 2015, and updated capital and operating costs. We
aim to release the new PFS in H2 2016 and when viewed in tandem
with the nickel market fundamentals for the next 12 to 24 months,
provides a compelling investment case as we work towards developing
Araguaia to Feasibility."
Detailed Information
The Preliminary Licence ('LP') was approved with consideration
of the terms set out in the Company's Social & Environmental
Impact Assessment, and conditions outlined by the Pará State
Environmental Agency. This follows the unanimous approval of
the licence in a meeting held in the Pará capital of Belém on
23 May 2016, by the Pará State
Committee of Environment ('COEMA'), which consisted of State
Government ministers, NGOs and representatives from civil society
groups.
The Brazilian mine permitting process with environmental
agencies has three key stages:
- The recently obtained preliminary licence ('LP');
- The installation licence ('LI'), which permits the start of
construction;
- Finally the licence to operate once construction is complete
('LO').
The granting of the LP is often regarded as the most important
licence as it outlines the parameters of the project as agreed upon
by all stakeholders and is the only environmental licensing process
that requires COEMA approval.
The Company will now focus on obtaining the LI which once
awarded, in parallel with the mining concession, allows
construction to start. The LI will require further detailed
environmental studies, a Definitive Feasibility Study, and further
community engagement. The Company will also work in
partnership with the State Government of Pará to undertake studies
identifying possibilities for use of the slag product from Araguaia
and potential local industries which could benefit from the final
ferronickel product.
About Horizonte Minerals:
Horizonte Minerals plc is an
AIM and TSX-listed nickel development company focused in
Brazil, which wholly owns the
advanced Araguaia nickel laterite project located to the south of
the Carajàs mineral district of northern Brazil.
The Company is developing Araguaia as the next major nickel mine
in Brazil.
The Project, which has excellent infrastructure in place
including rail, road, water and power, has a current NI 43-101
compliant Mineral Resource of 71.98Mt grading 1.33% Ni (Indicated)
and 25.4Mt at 1.21% Ni (Inferred) at a 0.95% nickel cut-off;
included in Resources is a Probable Reserve base of 21.2Mt at
1.66%Ni. An updated NI 43-101 compliant Mineral Resource statement
is currently being developed and will be released together with the
new PFS.
CAUTIONARY STATEMENT REGARDING FORWARD LOOKING
INFORMATION
Except for statements of historical fact
relating to the Company, certain information contained in this
press release constitutes "forward-looking information" under
Canadian securities legislation. Forward-looking information
includes, but is not limited to, statements with respect to the
potential of the Company's current or future property mineral
projects; the success of exploration and mining activities; cost
and timing of future exploration, production and development; the
estimation of mineral resources and reserves and the ability of the
Company to achieve its goals in respect of growing its mineral
resources; and the realization of mineral resource and reserve
estimates. Generally, forward-looking information can be identified
by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is based on the reasonable
assumptions, estimates, analysis and opinions of management made in
light of its experience and its perception of trends, current
conditions and expected developments, as well as other factors that
management believes to be relevant and reasonable in the
circumstances at the date that such statements are made, and are
inherently subject to known and unknown risks, uncertainties and
other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially
different from those expressed or implied by such forward-looking
information, including but not limited to risks related to:
exploration and mining risks, competition from competitors with
greater capital; the Company's lack of experience with respect to
development-stage mining operations; fluctuations in metal prices;
uninsured risks; environmental and other regulatory requirements;
exploration, mining and other licences; the Company's future
payment obligations; potential disputes with respect to the
Company's title to, and the area of, its mining concessions; the
Company's dependence on its ability to obtain sufficient financing
in the future; the Company's dependence on its relationships with
third parties; the Company's joint ventures; the potential of
currency fluctuations and political or economic instability
in countries in which the Company operates; currency exchange
fluctuations; the Company's ability to manage its growth
effectively; the trading market for the ordinary shares of the
Company; uncertainty with respect to the Company's plans to
continue to develop its operations and new projects; the Company's
dependence on key personnel; possible conflicts of interest of
directors and officers of the Company, and various risks associated
with the legal and regulatory framework within which the Company
operates.
Although management of the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements.
SOURCE Horizonte Minerals plc