Horizonte Minerals reports further high-grade nickel drill results at Araguaia nickel project, Brazil

TORONTO, Nov. 21, 2011 /PRNewswire/ - Horizonte Minerals (TSX:HZM, AIM:HZM) ("Horizonte" or "the Company") the AIM and TSX quoted exploration and development company focused on Brazil, is pleased to announce continuing positive results from the infill resource drilling programme at its 100% owned Araguaia nickel project ('Araguaia') in Para Sate, north central Brazil.

Highlights

• New high grade intersections on the Baião target include:
• 11.1 metres grading 2.01% Ni
• 15.0 metres grading 1.88% Ni
• 16.9 metres grading 1.85% Ni
• High grade intersection on the Vila Oito East target of 12.7 metres grading 1.87% Ni
• 539 drill holes totalling 13,204 metres completed to date as part of the infill resource drilling programme
• Preliminary Economic Assessment ('PEA') commenced September 2011
• Environmental Baseline Study commenced in October 2011
• Pyrometallurgical test work including Thermal Characterisation and Batch Smelting Tests are being undertaken at Xstrata's Process Support in Sudbury, Canada
• Hydrometallurgical test work including Bottle Roll Leaching and Atmospheric Tank Leaching tests are being undertaken at the Wardell-Armstrong laboratory in the UK

Horizonte CEO Jeremy Martin said, "The Company is fast tracking work on the Araguaia nickel project and with the current phase of resource drilling now complete, this will allow us to expand our maiden resource of 76.6Mt grading 1.35% nickel that was released in March of this year.  The delineation of additional high grade zones of mineralisation at the Baião target will allow us to look at options for the initial pit design.  All drill results are now being integrated into the new resource model and we aim to deliver the updated mineral resource estimate by the end of the year which is in line with our projections. 

"In tandem with the resource upgrade programme, we have two parallel sets of metallurgical test work currently underway: Xstrata Process Support is undertaking initial Pyrometallurgical testing to determine  the ore characteristics for the production of ferronickel; and Hydrometallurgical test work, including Bottle Roll Leaching and Atmospheric Tank Leaching tests are being undertaken at the Wardell-Armstrong laboratory in the UK.  The initial results of the test work will be received at the end of the year and into Q1 2012. 

These various parameters, resource plus metallurgical treatment routes will flow into the PEA which we plan to complete by the end of Q1 2012.  Araguaia is developing into a well-defined nickel deposit in terms of size and grade when compared with its global nickel peer group and we are well funded to advance the project through a number of key milestones."

Further Details

The results in this news release have been collated from the resource drilling programme that commenced in October 2010.  The results from the most recent batch of 166 drill holes (3,878 metres) from the 539 holes (13,204 metres) completed to date are reported as detailed in Table 1.

Table 1: Drill results reported

The data from the 25 metre x 25 metre drilling will be used to measure short-range variability in the mineralisation for the construction of semi-variograms for future resource estimation.

The results include several thick, high-grade intersections.  The results from the Baião target included 11.1 metres grading 2.01% nickel (Hole PCA-DD-0817); 15.0 metres grading 1.88% nickel (Hole PCA-DD-1053V) and 16.9 metres grading 1.85% nickel (Hole PCA-DD-1044V).  The results from the Vila Oito East target included an intersection of 12.7 metres grading 1.87% nickel (Hole PCA-DD-0869).

On the Vila Oito East target 141 metres x 141 metres infill drilling has been completed totalling 42 holes (1,289 metres).

On the Lontra targets (Raimundo, Northern and Southern) infill drilling has been completed totalling 85 holes (1,545 metres).

The current phase of resource drilling is now complete to allow the publication of the planned resource upgrade.  Drilling will commence on the next phase of Araguaia's development drilling in 2012.

NSI: No significant intersection

The compositing of the nickel grades in the individual holes was completed across geological boundaries using a nickel cut-off of 1% with a minimum intercept length of 2.0 metres and a maximum length of internal waste of 2 metres.  Weighted averages were calculated using double weighting, i.e. individual samples were weighted against both length and bulk density.  As the nickel laterite deposits are essentially flat-lying, all widths given are true thicknesses.

Sample preparation and analyses

Samples from the drill cores were crushed and pulverised at the SGS laboratory in Goiania and the resultant pulps analysed at SGS laboratory in Belo Horizonte using tetraborate fusion X-Ray Fluorescence ('XRF').  Full QA/QC procedures were implemented, including the insertion of standards, duplicates and blanks.  Check samples representing approximately 5% of all the samples will be sent to another international laboratory for analysis by XRF.

Horizonte Minerals prepared this news release and Dr. Marc-Antoine Audet P.Geo., a Qualified Person under National Instrument 43-101, reviewed and approved the technical information.

About Horizonte Minerals

Horizonte Minerals plc is an AIM quoted exploration and development company with a portfolio of nickel and gold projects in the Carajas District of Brazil.  The Company is focused on creating value by generating and rapidly advancing exploration projects in tandem with joint ventures with major mining companies, providing mid-term cash flow which is then used to develop the business and pipeline projects.

Horizonte has two committed major mining partners: Teck Resources Limited, a strategic 44 per cent shareholder in the Company, and AngloGold Ashanti Limited, a JV partner on the gold portfolio.

Horizonte owns 100 per cent of the advanced Araguaia nickel project located to the south of the Carajas mineral district of northern Brazil; the project has a resource with size and grades comparable to other world-class projects in northern Brazil and currently hosts 76.6 Mt grading 1.35% Ni.  Horizonte is working on an updated resource as well as undertaking a Preliminary Economic Assessment ('PEA').

In addition Horizonte recently reached agreement with Lara Exploration to acquire the Vila Oito project which has a potential resource of 10 to 11 Mt grading 1.3 to 1.4% Ni further consolidating the greater Araguaia district. Horizonte is well financed to advance the Araguaia project.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Except for statements of historical fact relating to the Company, certain information contained in this press release constitutes "forward-looking information" under Canadian securities legislation. Forward-looking information includes, but is not limited to, statements with respect to the potential of the Company's current or future mineral projects; the success of exploration and mining activities; and cost and timing of future exploration, production and development.. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". In addition, statements relating to "mineral reserves" or "mineral resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the mineral resources and mineral reserves described can be profitably mined in the future. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: exploration and mining risks, competition from competitors with greater capital; the Company's lack of experience with respect to development-stage mining operations; fluctuations in metal prices; uninsured risks; environmental and other regulatory requirements; exploration, mining and other licences; the Company's future payment obligations; potential disputes with respect to the Company's title to, and the area of, its mining concessions; the Company's dependence on its ability to obtain sufficient financing in the future; the Company's dependence on its relationships with third parties; the Company's joint ventures; the potential of currency fluctuations and political or economic instability  in countries in which the Company operates; currency exchange fluctuations; the Company's ability to manage its growth effectively; the trading market for the ordinary shares of the Company; uncertainty with respect to the Company's plans to continue to develop its operations and new projects; the Company's dependence on key personnel; possible conflicts of interest of directors and officers of the Company, and various risks associated with the legal and regulatory framework within which the Company operates.

Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

SOURCE Horizonte Minerals plc

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