Horizonte Releases Prefeasibility Study for Araguaia Nickel Project

Horizonte Minerals plc (TSX:HZM,LSE:HZM) announced the results from a NI 43-101 compliant prefeasibility study completed at its Northern Brazil-based Araguaia nickel project.

The company notes that the base case estimates a post-tax net present value of US$519 million and a 20-percent internal rate of return. It targets nickel production of 15,000 tonnes per year with an average nickel grade of 1.76 percent for the first 10 years. Initial mine life is pegged at 25 years.

Other highlights include:

• Low cost operation
  • C1 cash costs of US$4.16/Ib (US$9,166/t) over LOM (first quartile of cost curve)
• Significant free cash flow generation
  • Projected generation of US$1,766 billion post tax over the 25 year mine life
• Reduction in capital expenditure from the PEA
  • Base Case shows pre-production capital figure of US$582 million
• Short capital payback
  • 4.4 years (Base Case)
• High Grade
  • 1.76% Ni average feed grade for the first 10 years of production (Base Case)

Click here to read the full Horizonte Minerals plc (TSX:HZM,LSE:HZM) press release.