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Horizonte Minerals Plc
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Developing the next major nickel project in Brazil
Slide 1

New PFS Highlights

New PFS Highlights

On 3rd October 2016, Horizonte Minerals announced positive economic results from its new Pre-Feasibility Study (PFS). The PFS was prepared in accordance with NI 43-101 on its 100%-owned Araguaia project, which includes both the Araguaia Nickel project area (Araguaia South, referred to as HZMA in the PFS) and the Glencore Araguaia project area (Araguaia North, referred to as GAP in the PFS). The Project is located south of the Carajás mining district in the State of Pará in northern Brazil.

PFS Snapshot:

  • Robust economics based on a 28 year life of mine producing ~14,500 tonnes per annum nickel in ferronickel from a single line Rotary Kiln Electric Furnace Plant (RKEF)
  • Post tax NPV8 of US$581 million at a nickel price of US$14,000/t and an NPV8 of US$328 million at US$12,000/t Ni
  • Post tax IRR of 26.4% at US$14,000/t and 19.3% at US$12,000/t Ni
  • Project is expected to generate US$1.3 billion in free cash flow over LOM at US$12,000/t Ni
  • High grade ore with average nickel grade of 1.96% for the first 10 years of production
  • Project on the lower range of the global cost curve with C1 cash costs of US$3.15/Ib Ni (US$6,948/t Ni)
  • 43-101 Proven and Probable Mineral Reserve Estimate of 24.6 Mt grading 1.77% Ni

Asset Overview

Asset Overview

The PFS is summarized in a Technical Report prepared in accordance with NI 43-101 by Snowden Mining Industry Consultants Pty Ltd (Snowden) under the guidance of the Qualified Persons. The PFS Report is due to be filed on SEDAR at www.sedar.com later today (3rd October 2016) and will subsequently be uploaded onto this website.

The Project, which is 100% owned by Horizonte, is located on the eastern margin of the State of Pará, north-eastern Brazil, to the north of the town of Conceição do Araguaia (population of 46,206), south of the main Carajás Mining District.

The Project has good regional infrastructure including a network of Federal highways and roads, with access to low tariff hydro-electric power. The Carajás Mining District, situated approximately 200km northwest of the Project, is host to a number of major iron and copper mines operated by mining major Vale SA.

The PFS considers open pit mining for the exploitation of nickel laterite to establish the production of run of mine (ROM) from eight open pits to supply a targeted 0.9 million tonnes per annum (Mt/a) of ore to a processing and smelter facility. This facility will use the proven RKEF process with the product being sold at free on board (FOB) at the selected port of export.

A Base Case of 0.9 Mt/a production throughput was selected because of the Company’s objective to minimise the capital expenditure and overall capital intensity, and to optimise overall cash flow, payback, and the economics of the Project. Opportunity exists to increase production subject to further engineering and there is potential to increase the mineral reserve base.

More detailed information can be accessed under the Process, Reserves and Resources, Economics and Development Pathway pages.

Project Location:

Project Location

Main project features

Item

Unit

Value

Ore throughput

Mt/a (dry)

0.9

Ore grade – design (average first 10 years)

% Ni

1.96

Overall nickel recovery

%

93

Final metal Ni production – design capacity

t/a Ni

16,400

Furnace power (one furnace)

MW

50

Ni grade in the final product metal

%

30

Plant configuration

 

One RKEF line

Refining system

 

Ladle furnace

Final FeNi product

 

Granulated FeNi



Ferronickel bar from Araguaia Pilot Plant 2015

Nickel Bar
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