The Araguaia Nickel Project |
Video of Araguaia Drilling |
Introduction
The Araguaia Nickel Project is an advanced nickel laterite exploration / evaluation project located in the Araguaia Fold Belt in the northern state of Para in Brazil, which is a significant new nickel province serviced by good infrastructure. The project is the amalgamation of adjacent grassroots discoveries by Horizonte, Teck Resources and Lara Exploration Limited / Falconbridge Limited(Xstrata). The nickel laterites have developed over the peridotite components of mafic / ultramafic complexes within the belt. Several significant nickel laterite deposits occur within this region of Brazil including Xstrata’s Serra do Tapa/Vale dos Sonhos deposits (Inferred Minerals Resource of 73Mt grading 1.50% nickel – 2006) that are also located within the Araguaia Fold Belt 80km to the north of the project area (Figure 1). 
Figure1: Location and regional setting
What are Nickel Laterites?
Nickel laterites are the residual products of the chemical weathering of peridotites with a primary nickel content of 0.2% to 0.4% in tropical and sub-tropical climatic zones. The laterisation processes concentrate by factors of 3 – 30 times the nickel and cobalt contents of the parent rock.
Project History
The Araguaia Nickel Project as it is today is the result of parallel exploration programmes undertaking in adjacent areas:
In August 2010 in an agreement with Teck Resources, Horizonte Minerals acquired 100% of the licences previously explored in the Teck Resources Araguaia Project.
In July 2011 in an agreement with Lara Exploration Limited, Horizonte Minerals acquired 100% of the licences containing the Vila Oito West and Floresta nickel laterites. The consolidated holdings and laterite targets are shown in Figure 2.
Figure 2: Principal Laterite Target
Mineral Resources
In January 2012 Horizonte announced a new NI 43-101 compliant Mineral Resource Estimate incorporating a Indicated Mineral Resource of 39.3 million tonnes grading 1.39% nickel and 0.061% cobalt and an Inferred Mineral Resource of 60.9 million tonnes grading 1.22% nickel and 0.058% cobalt, at a 0.95% nickel cut-off. A technical report “Geology and Minerals Resources of the Araguaia Nickel Project, Brazil, NI 43-101 Technical Report” by Marc-Antoine Audet, Jason Che Osmond, Bruce Pilcher and Alison Allen dated February 23, 2012 is filed on SEDAR (www.sedar.com) in support of this estimate. Further information in respect of the Mineral Resources on the Araguaia Nickel Project including, assumptions, parameters and methods used to estimate such mineral resources is included in the Technical Report.
NI 43-101 technical report .pdf
Recent work
Metallurgical Testwork:
A number of different process options are currently being investigated.
Xstrata Process Support (XPS), Sudbury, Ontario, Canada, was in commissioned in H2 2011 to undertake pyrometallurgical testwork on samples of limonite, transition, saprolite and blends of all three of the principal mineralised facies. The scope of this work includes the thermal characterisation of the samples and completing batch smelting tests. The testwork is completed and final results will be reported shortly.
Wardell-Armstrong International (WAI) was commissioned in H2 2011 to undertake hydrometallurgical testwork on fractions of the same samples provided to XPS. This testwork includes both bottle roll leaching, as a preliminary to possible further heap leaching testwork, and atmospheric tank leaching. The testwork has recently been completed and the results of this testwork and final reporting are expected shortly.
Bulk Sample:
In October 2011 a 130 tonne (dry) bulk sample was collected from the Pequizeiro target using wide diameter auger drilling. The sampling was designed to collect the mineralised parts of each of the limonite, transition and saprolite facies in the ratio that they were estimated to occur in the combined Baião and Pequizeiro targets at a 1.0% nickel cut-off. These samples are stored in 200 litre sealed plastic drums awaiting dispatch for the next stage of metallurgical testwork.
Preliminary Economic Assessment (PEA):
WAI were commissioned to undertake a PEA in Q3 2011. The results of all the preliminary metallurgical testwork will be incorporated into the PEA. The study is expected to be completed by the end of Q2 2012.
Environmental Baseline Study:
An environmental baseline study was commenced in Q3 2011. The study is designed to address project specific environmental, social and permitting issues. These include a social reconnaissance study to provide perspective on social factors that can influence social risk and the information on project stakeholders required to develop a stakeholder engagement plan.
