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Horizonte Minerals PLC announces the award of a feasibility study contract for Vermelho


Feasibility study contract awarded to Wood plc for Vermelho nickel-cobalt project, Brazil

Horizonte Minerals Plc (AIM: HZM) (TSX: HZM), a nickel company developing two Tier 1 assets in Brazil, is pleased to announce that it has awarded Wood Plc (“Wood”) a major design contract for a feasibility study (” FS”) for Horizonte’s 100%-owned Vermelho nickel-cobalt project (the “Vermelho” or “Project

Vermelho is a large, high-quality, long-life, scalable resource designed for the low-cost production of nickel and cobalt for the battery industry. The Vermelho FS contract is another major milestone for Horizonte as the company moves towards its long-term goal of becoming a 60,000tpa nickel producer following the start of construction of Araguaia, its ferronickel project, earlier this year. it is planned to produce the first nickel in the first quarter of 2024.

The main points

  • Vermelho is estimated to produce 25,000 tonnes of nickel and 1,250 tonnes of cobalt per year over the mine’s 38-year life;
  • A preliminary feasibility study (as of October 2019) estimated an NPV₈ of US$3.4 billion and an after-tax internal rate of return of 38.6% with net cash flows of US$12.9 billion at a nickel price of US$23,000 US per ton;
  • Wood is a global leader in project execution, engineering and technical services with experience in a number of major high-pressure nickel leaching operations worldwide;
  • The FS cost estimate will be performed in accordance with the AACEI Class 3 standard;
  • Additional contracts in the final stages of awarding include pilot testing, mining, hydrogeology, hydrology, infrastructure and logistics packages; and,
  • Environmental licensing for Vermelho is well advanced, and the key regulatory documents that form the basis for a building license are expected to be in place by the end of the year.

Jeremy Martin, CEO of Horizonte Minerals, commented:

“We are delighted to be working with Wood plc to carry out the feasibility study for the Vermelho project. The launch of FS is an important step forward in unlocking the significant value of Vermelho. Nickel resources of this scale and quality at an advanced level are very few. stage of development, leaving Vermelho well positioned to benefit from the growing demand for sustainable essential metals.

“Vermelho is located in the mining area of ​​Carajas, a region with well-developed infrastructure and hydroelectric plants. The project is designed to produce nickel in intermediate or refined form and will be a globally significant, conflict-free, ethical source of cobalt. .

“Araguaia and Vermelho have combined reserves of more than four million tons of nickel. Leveraging the synergy of these two world-class projects, located within truckload distance of each other in a stable and professional mining jurisdiction, Horizonte is well positioned to realize its growth target of producing 60,000 tonnes of nickel per year, making the company one of the world’s leading producers of primary nickel. nickel outside of Indonesia.

Additional information

Wood is a global leader in project implementation, engineering and technical services, providing effective, integrated solutions throughout the asset lifecycle across multiple sectors. They have extensive experience in the nickel industry, having worked on a number of key high-pressure nickel leach operations around the world. The company is recognized in the industry as a leading hydrometallurgical group that delivers smart and superior results for its customers worldwide.

Wood (formerly GRD Minproc), who carried out the successful FS Vermelho for Vale between 2003 and 2006, already has a detailed understanding of the project, allowing them to use this existing knowledge in the process of creating this updated FS for Horizonte.

Wood will provide the necessary level of engineering to support the cost estimate with the expected accuracy of +/-15% for the final FS phase in accordance with AACEI Class 3 estimating guidelines.

Environmental licensing for Vermelho is well developed. Horizonte has received an operating license that allows for exploration and drilling activities in the area and is nearing completion of the Environmental and Socio-Economic Impact Assessment (“ESIA”, also known as “RIMA” in Brazil) for the project. The ESIA/RIMA will be supplemented by further detailed environmental engineering studies to support the FS. Tenders for these activities have been completed and contracts to support these feasibility studies are expected to be awarded shortly.

About the Vermelho Nickel-Cobalt Project

The Group owns 100% of Vermelho, a high-grade, long-life and scalable resource located in the Carajas mining district in the state of Pará in northeastern Brazil. The area has a well-developed infrastructure, including roads, railways and hydroelectric power plants, as a result of the continuous mining of minerals in Carajas.

The Vermelho Pre-FS includes a planned opencast nickel laterite mining operation spanning a number of different pits. The hydrometallurgical process includes a concentrator where the ore is upgraded before being fed to a centralized high-pressure acid leach (HPAL) plant. The project envisages mining probable mineral reserves of 141.3 million tonnes (“Mt”) for 924,000 tonnes of nickel, 36,000 tonnes of cobalt and 4.48 million tonnes of marketable by-product, kieserite (a type of fertilizer) at of the originally planned 38-year-old mine. of life. At full production capacity, the project is expected to produce an average of 25,000 tonnes of nickel and 1,250 tonnes of cobalt per year using a high-pressure acid leach process.

Vermelho is set to provide significant socio-economic benefits to communities in the state of Pará, including more than 1,800 jobs during the construction phase and more than 600 jobs during operation, as well as additional economic and social development programs.

For more information visit www.horizonteminerals.com or contact:

Horizonte Minerals plc
Jeremy Martin (CEO)
Simon Rather (CFO)
Patrick Chambers (Head of IR)
+44 (0) 203 356 2901
Peel Hunt LLP (Nominated Adviser and Joint Broker)
Ross Alistair
David McKeown
+44 (0)20 7418 8900
BMO (Broker Mutual)
Thomas Ryder
Pascal Lucier Duquet
Andrew Cameron
+44 (0) 20 7236 1010
Tavistock (financial PR)
Emily Moss
Kat Drummond
+44 (0) 20 7920 3150


Horizonte Minerals plc (AIM & TSX: HZM) is developing two 100% owned Tier 1 projects in the state of Pará, Brazil – the Araguaia Nickel Project and the Vermelho Nickel-Cobalt Project. Both projects are large-scale, comprehensive, low-cost, low-carbon and scalable. Araguaia will produce 29,000 tons of nickel per year to supply the stainless steel market. Vermelho is in the feasibility study stage and will produce 25,000 tonnes of nickel and 1,250 tonnes of cobalt to supply the electric vehicle battery market. Horizonte’s combined near-term production profile of more than 60,000 tonnes of nickel per year makes the company a significant global nickel producer. Horizonte is developing a new nickel district in Brazil that will benefit from established infrastructure, including the hydroelectric power available in the Carajas mining district.


Except for statements of historical fact relating to the Company, certain information contained in this press release constitutes “forward-looking information” under Canadian securities laws. Forward-looking information includes, but is not limited to, the Company’s ability to complete the acquisition of equipment as described herein, statements regarding the potential of the Company’s current or future mining projects; the Company’s ability to timely complete a positive feasibility study for the second RKEF line in Araguaia, or generally, the success of exploration and production of minerals; cost and timing of future exploration, production and development; the cost and timing of delivery of the equipment to be purchased as described herein, the estimation of mineral resources and reserves and the Company’s ability to achieve its objectives with respect to the development of mineral resources; implementing mineral resource and reserve estimates and achieving production in line with the Company’s potential production or at all. Generally, forward-looking information can be identified by forward-looking terminology such as “plans,” “expected” or “not expected,” “expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “my intends”, “anticipates”, “does not expect”, or “believes”, or variations of such words or phrases or statements that certain actions, events or results “may”, “could”, “would”, “maybe” or “will be taken”, “occurring” or “achieving”. Forward-looking information is based on management’s reasonable assumptions, estimates, analysis and judgments made in light of its experience and its perception of trends, current conditions and expected events, as well as other factors that management believes are relevant and reasonable under the circumstances as of the date such statements are made. and are inherently subject to known and unknown risks, uncertainties and other factors that could cause the Company’s actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including but not limited to limited to the risks associated with: the Company’s inability to complete the acquisition of the equipment contemplated herein in a timely manner or at all; the Company’s ability to complete a positive feasibility study regarding the implementation of the second RKEF line in Araguaia on schedule or at all; the exploration and production of resources; competition from competitors from large capital; the company’s lack of experience in conducting mining operations at the development stage; metal price fluctuations; uninsured risks; environmental and other regulatory requirements; exploration, production and other licenses; future payment obligations of the company; potential disputes regarding the Company’s ownership of its mining concessions and its mining areas; the Company’s dependence on its ability to obtain sufficient financing in the future; the Company’s reliance on its relationships with third parties; joint ventures of the company; potential currency fluctuations and political or economic instability in the countries in which the Company operates; exchange rate fluctuations; the company’s ability to effectively manage its growth; the trading market for the Company’s common stock; uncertainty regarding the company’s plans for continuing to develop its operations and new projects; the company’s dependence on key personnel; potential conflicts of interest of the company’s directors and officers, and various risks related to the legal and regulatory framework in which the company operates, together with the risks identified and disclosed in the company’s disclosure record available in the company’s SEDAR profile at www.sedar.com, including, without limitation, the Company’s Annual Information Form for the year ended December 31, 2021, the Uruguay Report and the Vermeilleu Report. Although the Company’s management has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results to differ from those anticipated. , estimated or planned. There can be no assurance that such statements will prove to be accurate, as actual results and future events may differ materially from those anticipated in such statements.

This is reported by the news service of the London Stock Exchange RNS. RNS is approved by the Financial Conduct Authority as a primary information provider in the United Kingdom. Terms of use and distribution of this information may apply. For more information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Horizonte Minerals PLC

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