Horizonte Minerals Plc (AIM: HZM | TSX: HZM) has reported good progress on the construction of its wholly-owned Araguaia Nickel Project. The company is targeting its first metal in Q1 2024.
“We are pleased with progress to date at Araguaia Phase 1, with around 65% of the overall project completed as at quarter-end. We are targeting first metal in Q1 2024,” commented Jeremy Martin, CEO of Horizonte.
“Whilst the key focus is the construction activities at Araguaia, we are making good progress on the Line 2 Feasibility Study which is scheduled to be published later this year. The proposed expansion has the potential to double the annual nickel production to 29,000tpa.”
As of 30 June 2023, approximately 65% of the overall Araguaia Line 1 construction programme has been completed, physical site construction was 53% advanced with ore stockpiling having now commenced following the issuance of the mining permit during the quarter.
Additionally, a major milestone in the quarter was the safe delivery to site of the rotary kiln, a key long lead item. The 11 steel sections will now be aligned and welded together before being lifted into place for final installation on the kiln piers.
There was also a strong safety performance, with no lost time injuries with close to 3.8M hours worked.
Off-site, construction of the 126km, 230kV transmission line is well advanced with over 90% of the pylons erected and 42km of conductor cable installed. Construction of the water storage reservoir has commenced.
Since the end of June, a total of US$329M has been spent on the Araguaia construction out of the budgeted capital requirement of US$537M. As at quarter-end, the company had total liquidity and funding sources of US$344M.
The FS for Horizonte’s 100% owned Vermelho project in Brazil, is currently on-going and is expected to be published in 2024. Vermelho has a high-grade scalable resource with a long mine life. Given Vermelho’s geological characteristics, the ore can be processed either through High-Pressure Acid Leach or Rotary Kiln Electric furnace technologies. As part of the study and driven by the evolving market dynamics, Horizonte is evaluating the optimal final nickel product that will supply the critical metals market.
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