Feasibility study contract awarded for Vermelho project
Aim- and TSX-listed Horizonte Minerals has awarded engineering services company Wood the contract to undertake the feasibility study for the Vermelho nickel/cobalt project, in Brazil.
Vermelho is a large, high-grade, long mine life, scalable resource, designed to produce 25 000 t/y of nickel and 1 250 t/y of cobalt over a 38-year mine life.
The prefeasibility study estimated a net present value, using an 8% discount, of $3.4-billion and post-tax internal rate of return of 38.6% with net cash flows of $12.9-billion, using a nickel price of $23 000/t.
The feasibility contract award is a key milestone for Horizonte as it advances towards its long-term objective of becoming a 60 000 t/y nickel producer, following the start of construction at Araguaia, its ferro-nickel project, early this year, which is on schedule to produce first nickel in the first quarter of 2024.
Araguaia and Vermelho have a combined inventory of more than four-million tonnes of nickel. The two assets are within trucking distance of each other in a stable and pro-mining jurisdiction.
“There are very few nickel resources of this scale and quality at an advanced stage of development, leaving Vermelho well positioned to capitalise on the growing demand for sustainable critical metals,” commented Horizonte CEO Jeremy Martin.
Vermelho is located in the Carajás mining district, an area that features well-developed infrastructure, and hydroelectric power. The project is designed to produce nickel in intermediate or refined form and will be a globally significant, non-conflict, ethical source of cobalt.
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