Horizonte Minerals (LON:HZM) (TSE:HZM) said its infill drilling program has returned a series of holes containing high-grade nickel at good vertical thickness.
They were from the Vila Oito and the Vila Oito West targets on the company's Araguaia project in Northern Brazil.
The highlights included 20.21 metres grading 2.29% nickel (Ni), 13.48 at 1.77% Ni and 20.38 metres at 1.68% Ni.
In all 321 holes, for a total of 9,309 metres, have been completed as part of the infill drill program targeting the Jacutinga, Vila Oito West, Vila Oito, Vila Oito East and Pequizeiro areas. It was finished on time and on budget.
The result will be worked into the company's preliminary feasibility study (NYSE:PFS), which is being compiled by the Snowden Mining Consultants and will incorporate an updated resource.
The PFS is expected to be delivered at some point in the second half of 2014, Horizonte confirmed.
Chief executive Jeremy Martin said: "Both the Vila Oito and Vila Oito West target results are highly encouraging and have returned a number of drill holes with high nickel grades and good vertical thickness.
"All of the results have now been integrated into the PFS which will result in an updated resource model as part of the overall study. "Snowden Mining Consultants, with the associated consulting groups, are making solid progress on the PFS study, with initial work complete on the plant site selection, initial mining design and preliminary mining schedule.
"The program is running to budget and is on schedule for completion in the first half of 2014."
As part of the update, Horizonte said an additional geotechnical drilling program is underway on the area selected to house its plant.
This is to determine the ground conditions around the planned locations of the primary crusher, rotary kiln, electric furnace and the slag disposal facility.
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