According to the company, the study confirms Araguaia as a tier 1 project with a large high-grade scalable resource.
Horizonte Minerals (LSE/TSX:HZM) has published the results of a feasibility study for the Araguaia ferronickel project in Brazil’s Pará State.
According to the company, the study confirms Araguaia as a tier 1 project with a large high-grade scalable resource, a long mine life and a low-cost source of ferronickel for the stainless-steel industry.
As highlighted in the press release:
- Initial 28-year mine life generates cash flows after taxation of US$1.6 billion with sufficient Mineral Resources to extend beyond 28 years
- Estimated post-tax net present value of US$401 million and internal rate of return of 20.1 percent
- Upon development the project is expected to produce an average of 14,500 tonnes of nickel contained within approximately 52,000 tonnes ferronickel per annum, utilising the proven RKEF technology currently used at over 40 mines around the world
- The process plant has been designed to allow for a stage 2 expansion with the addition of a second (RKEF) process line in the future after the first line is fully commissioned, providing flexibility to double the nickel output. A preliminary economic assessment study is underway for this stage 2 expansion, expected to be published in late 2018
- The company has successfully obtained the preliminary environmental licence and water permit for full-scale operation at Araguaia and is on track to obtain its construction Licence in Q1 2019.