Horizonte gets mining approval for Araguaia project

6th Jul 2023 15:11

(Sharecast News) - Brazil-focussed nickel company Horizonte Minerals has obtained a mining approval permit from the Pará State Secretariat for Environment and Sustainability (SEMAS) for its Araguaia Nickel Project, it announced on Thursday.

The AIM-traded firm said the milestone would enable Horizonte to start its mining activities, marking a crucial step forward in the development of the project.

It said the permit, officially titled 'Autorização comissionamento da atividade de Extração Mineral', granted Horizonte the authority to mine, stockpile, and categorise ore.

That process would be vital in optimising the consistency of feedstock, thus mitigating risks during the commissioning phase.

The company said it would focus on establishing ore stockpiles on the run-of-mine (ROM) pad as part of the initial work.

Over the next six months, sufficient quantities of ore would be stockpiled to feed the plant for the subsequent six months.

The primary source of ore for the Araguaia Nickel Project would be the Pequizeiro Pit, located 750 metres from the plant site.

That pit was expected to supply ore for the first two years of the project's mine life, and contribute more than 50% of the mine's production for the initial 10 years.

"I am pleased to announce the approval to begin mining activities at Araguaia, another important milestone for Horizonte," said chief executive officer Jeremy Martin.

"The approval allows ore to be mined and stockpiled with the aim of mitigating a key commissioning risk as part of our mine-to-mill strategy ahead of the plant start-up next year.

"The Horizonte team continues to work closely with SEMAS and other local stakeholders, towards delivering long-term sustainable value for all involved in this new tier-one nickel project."

At 1449 BST, shares in Horizonte Minerals were up 3.95% at 158p.

Reporting by Josh White for Sharecast.com.