Horizonte Minerals requests proposals for Araguaia feasibility study

Brazil-focused nickel development company Horizonte Minerals announced the issuance of a request for proposals on Monday, to engage consulting firms to prepare a definitive feasibility study for its 100%-owned Araguaia nickel project, which was being developed as the next major nickel project in Brazil.

The AIM-traded firm said the request for proposals followed positive economic results of the new pre-feasibility study released in October, and the successful fundraise of £9m approved by shareholders on 30 November.

Araguaia is located south of the Carajás mining district in the State of Pará in northern Brazil.

Horizonte said the request for proposals documents were issued to engineering companies and EPCM groups in early December.

It confirmed the tender process will close in January and successful groups will be announced and commence work in February.

“The preparation for the feasibility study for Araguaia is another milestone for the company, as we advance the project towards construction,” said CEO Jeremy Martin.

“The selection of the engineering group or EPCM group to undertake the feasibility study will be a key decision, we want to ensure that the study will allow a seamless progression into the implementation phase.”

Martin said it had been a busy year for Horizonte having delivered the “robust economics” for Araguaia in the PFS, with work at the project continuing to progress according to schedule.

“As we enter this exciting stage it is encouraging to see the nickel price increase with a number of positive reports in the marketplace continuing to point to robust fundamentals for the metal for 2017 and beyond.

“We are confident that the project milestones going forward are well aligned with nickel fundamentals,” Martin added.