Horizonte Minerals, the multi-asset nickel development company focused in Brazil, is pleased to provide an update on its 100% owned, Vermelho nickel-cobalt located in the eastern part of the Carajás mining district.

• Test-work is underway at SGS Lakefield on Vermelho limonite samples, with the objective of producing high purity nickel and cobalt sulphate suitable for the Electric Vehicle (EV) battery market
• Initial tests show high nickel and cobalt extraction rates achieved on limonite samples
• In addition, batch smelting tests are being conducted on samples of transition and saprolite material from Vermelho at the Kingston Process Metallurgy laboratory, Canada.  This work aims to confirm its suitability to produce high grade ferro-nickel, which could potentially be treated at the Araguaia plant or a new standalone facility at Vermelho
• Environmental baseline data collection has re-commenced at Vermelho as part of advancing the permitting process.

Horizonte CEO, Jeremy Martin, commented: “Horizonte is advancing its recently acquired Vermelho project, a scalable high-grade nickel deposit which has the potential to supply raw materials into the battery industry. Two parallel streams of test-work are currently underway.

“The first, testing the limonite ore’s suitability for production of high purity nickel and cobalt sulphate to supply EV markets. The second, testing the saprolite ore as a feed into the planned Rotary Kiln Electric Furnace (RKEF) plant at Araguaia, or potentially into a standalone RKEF plant at Vermelho.

“This is an exciting time for Horizonte, as the company aims to release its feasibility study results for Araguaia due imminently, and in parallel, advance its second asset, Vermelho. Horizonte is firmly on its pathway to become a multi-asset nickel development company. The nickel market remains strong, with robust demand and inventories continuing to fall.”

The Vermelho nickel-cobalt project lies in the state of Pará, some 85 km northwest from the northern part of Horizonte’s Araguaia FeNi Project. The Carajás district is an established mining region with well-developed infrastructure, including: rail, roads and hydro-electric power. The project was developed by Vale with the objective of becoming its principal nickel-cobalt operation. Extensive work was undertaken, which included drilling programs totalling 152,000 m, full-scale pilot test work and detailed engineering studies. The project was subsequently taken through a feasibility program with Vale announcing a positive development decision in 2005. The study showed production capacity of 46,000 t/y of metallic nickel, and 2,500 t/y of metallic cobalt, with an expected commercial life of 40 years.

In May 2018, Horizonte announced an initial NI 43-101 Mineral Resource Estimate in the Measured and Indicated category which contained 167.8 Mt grading 1.01% Ni and 0.06% Co (at 0.9% Ni equivalent cutoff). These resources categories are estimated to contain 1.68 Mt of nickel and 94,000 Mt of cobalt.

The Mineral Resource Estimate places Vermelho as one of the largest known, highest grade, undeveloped laterite nickel-cobalt resources globally.