Horizonte Minerals (LON:HZM) (TSE:HZM) has taken further steps towards de-risking and enhancing the value of its nickel project in Brazil following a further round of drilling and metallurgical test-work.
The former uncovered significant higher grade intercepts at the Araguaia project in the north of the country, while the latter pointed to the fact the ore can be processed using existing and proven technology.
As a result of the drilling work, Horizonte hopes to move around 50mln tonnes of the higher grade material up into the indicated resource category.
The results from 81 infill holes on the Jacutinga, Vila Oito, Vila Oito East and Pequizeiro West targets included 23 metres at 2.09% nickel, 9.1 metres at 2.11%, 16.2 metres at 1,73% and 14.1 metres at 1.62%.
The metallurgical test work, meanwhile, revealed the Araguaia ore can be processed using a rotary kiln electric furnace of the kind produced by FLSmidth, which carried out the assessment of Horizonte's samples.
"The success of the metallurgical test work marks another major step in de-risking Araguaia and demonstrates that the ore can be processed using proven technology," said chief executive Jeremy Martin.
"Work is now focused on moving the project into the pre-feasibility stage and we hope to award the pre-feasibility study contract in the first quarter of this year."
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