BRAZIL – Horizonte Minerals of Toronto released a pre-feasibility study for its 100% owned Araguaia nickel project indicating a mine would have a life of 25 years producing 15,000 tonnes of nickel in a ferro-nickel product from a single line. The base case carries a pre-production capital cost of US$582 million, and the project has the potential to generate US$1.77 billion over its lifetime. The project would pay for itself in only 4.4 years.
The Araguaia property is located south of the Carajas mining district in the Para state. A resources base of 71.98 million indicated tonnes grading 1.33% Ni and 25.35 million tonnes grading 1.21% Ni has been outlined.
Horizonte president and CEO Jeremy Martin said in a release that his company prefers the small base case development scenario, but that a larger facility could be built if a partner were brought into the project.
Horizonte anticipates using proven pyrometallurgical technology with a rotary kiln electric furnace.
The 43-101 report is available to download at HorizonteMinerals.com.