Horizonte Minerals Plc, a nickel development company focused in Brazil, has reached an agreement with Vale S.A to acquire 100% of the advanced Vermello nickel-cobalt project located in Brazil.
The Vermelho nickel project is located approximately 85km from the northern part of Horizonte’s Araguaia project located south of the Carajás mining district in the Brazilian state of Pará. The Carajas district is an established mining region with well-developed infrastructure in place, including rail, roads and hydro-electric power. The Vermelho project was developed by Vale with the ultimate goal of becoming its principal nickel-cobalt operation. Extensive work was undertaken on the project, which included drilling programmes totalling 152,000 metres, full scale pilot test work and detailed engineering studies. The project was subsequently taken through a feasibility programme with Vale announcing a positive development decision in 2005.
The project was designed around the construction of a high pressure acid leaching plant (HPAL) to process the nickel/cobalt laterite ore. The Feasibility Study included a five-year metallurgical test work and pilot plant programme which delivered 96% average leaching extraction rates of nickel and cobalt.