Horizonte Minerals plc has advanced its Araguaia nickel project by completing the earthworks, 95% of detailed engineering and progressing electro-mechanical installations at the site in northeast Brazil.
PREPARATIONS
The company remains on schedule for production in Q1 2024 with 50% of the Araguaia Line 1 construction programme now complete, on budget, and 90% of the total capital awarded amounting to US$485 million
Data from the completed grade control drilling programme has been utilised for the short-term mining planning and the start of pre-stripping activities on the main Pequizeiro pit.
Ore stockpiling is due to begin during Q3 2023.
Key long lead items are expected to be delivered as planned, with the rotary kiln and dryer now in Brazil and en route to the site.
The line 2 feasibility study, which aims to double nickel production from 14,500 tonnes per annum to 29,000tpa, remains due for publication during H2 2023.
This will also allow Araguaia to produce high-grade low impurity ferronickel as well as potentially nickel matte.
Horizonte also reported no lost time injuries from more than two million hours worked.
VERMELHO
The company said that its second project in Vermelho, expected to produce 24,000t nickel and 1,250t cobalt, remained centred on the feasibility study due for completion during H1 2024 and the environmental impact assessment.
Chief executive Jeremy Martin added that the key focus was on operational readiness at Araguaia.
“Alongside the construction progress at Araguaia Line 1, with the award of the Line 2 feasibility study contracts, we are one step closer to delivering on this low capex project that will double nickel production.
“Vermelho workflows remain centred around the feasibility study with onsite data collection progressing well, feeding into the process engineering that is underway with Wood plc in Perth.
“We are pleased by the progress made to date on all workstreams and are confident in our ability to continue to deliver as we head toward first nickel in Q1 2024.”