UPDATE: Horizonte infill drilling programme uncovers more high-grade nickel

Horizonte Minerals’ (LON:HZM, TSE:HZM) drilling programme on the Araguaia project in north central Brazil has intercepted high-grade nickel.

At the Jacutinga target, the best result was 7.61 metres at 1.8% of the metal, while Vila Oito returned 6.75 metres at 2.53%, 10.52 metres at 1.91% and 13.33 metres at 1.78% nickel.

Chief executive Jeremy Martin said: "The results of the on-going infill drill programme at Araguaia continue to deliver high nickel grades with good vertical thickness over the main target zones.

“A key objective of this on-going drilling programme is to determine the overall size of the target zones, together with converting the current resources to the Indicated category.

“In line with this, we have awarded a contract to Snowden Mining Consultants to supervise and undertake the updated resource estimate that will form the basis for the pre-feasibility study.

“The selection process for the pre-feasibility consulting groups is also in the final stages and we look forward to updating on all these developments in due course."

The latest data formed the highlights of 166-hole campaign, which covered 5,500 metres of a planned 7,000 metre infill programme.

This is targeting the Jacutinga, Vila Oito, Vila Oito East and Pequizeiro West targets at Araguaia.

The deposit is estimated to contain an indicated and inferred 100mln tonnes of nickel and is next to Vale’s Onça Puma deposit.

The preliminary feasibility study assessing the economic potential of Araguaia is expected by the end of the year.

The stock opened marginally higher to 11.65 pence having advanced around 25% in the last year.

City broker Northland Capital remains bullish on the prospects for Horizonte and its flagship prospects.

“Infill drilling at the Araguaia project, located in Brazil, continues to return the high grades expected and indicates a significant vertical thickness over the main target zones,” said analyst Ryan Long.

“Several of the drill holes reported were located around the periphery of the known mineralisation and encountered low nickel grades below the 1% cut off, as would be expected from the position of these holes.

“This drill programme is focused on determining the overall size of the target zones as well as converting the current resource to the indicated category.”