Horizonte Minerals expects to announce the results of the preliminary economic assessment for its Araguaia nickel project in Brazil at the end of the current Q2. The prefeasibility study will follow and is expected to be released in the H1 of 2013.

The group today reported results for the Q1 to end Mach 2012, a period which saw among other milestones, a 30% upgrade to the flagship project’s NI 43-101 resource to more than 100 million tonnes and metallurgical tests revealing good recoveries from Araguaia ore.

Horizonte finished the first quarter with a strong cash position of EUR 4.87 million. The group is now planning more metallurgical studies on Araguaia. Further diamond drilling on the property is also planned, with a view to increasing the overall tonnage and upgrading inferred tonnage to the indicated category.

Horizonte and JV partner AngloGold Ashanti have scheduled a geophysical survey over their Falcao gold project in Brazil and subject to the results, a follow up drilling program for the second or Q3 of this year.

Mr Martin Potts analyst of FinnCap expects the PEA for Araguaia to be a significant milestone for Horizonte. This will, for the first time set out the project costs and operating parameters and should allow the calculation of a solidly based discounted valuation.

Source - Proactive Investors.co.uk

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