Horizonte Minerals (LON:HZM) is continuing to consolidate its position around the Araguaia nickel project in Northern Brazil.
It has been awarded three concessions totalling just under 6,000 hectares to the south of the main property. In July is snagged an adjacent three concessions covering 3,142 hectares.
Initial exploration work suggests the area may share similarities to Vale dos Sonhos, host to a high-grade nickel resource.
So far this year Horizonte has been granted 20,000 hectares of new exploration concessions.
“These new areas represent an attractive opportunity to potentially increase our nickel resources in the medium-term adding further value to Araguaia,” said chief executive Jeremy Martin.
“We will be undertaking a regional exploration programme to evaluate and advance these new areas as appropriate.”
Based in Para state, the company’s Araguaia deposit is host to a proven and probable mineral reserve of just short of 25mln tonnes grading 1.77% nickel.
That’s enough to sustain a mine for 28 years at the projected annual output and the pre-feasibility showed would generate free cash of $1.95bn.
Of course, several assumptions had been plugged in to get that number, including a mining cash cost of around US$6,500 per tonne, an average selling price of US$14,000 per tonne, and an initial capital spend of US$354mln.
Story by ProactiveInvestors