Mr. Jeremy Martin reports

COMPLETION OF THE BULK SAMPLE COLLECTION WORK FOR THE ARAGUAIA NICKEL PROJECT, BRAZIL

Horizonte Minerals PLC has completed the bulk sample collection ahead of the full-scale pilot plant campaign for its 100-per-cent-owned Araguaia nickel project in Para state, north-central Brazil.

Highlights

High-grade nickel intersections received from bulk sampling drilling include:

• 11.45 metres grading 2.68 per cent nickel (Ni);
• 8.38 metres grading 2.42 per cent Ni;
• 12.51 metres grading 2.14 per cent Ni;
• Successful collection of bulk sample using wide-diameter auger drilling of 23 holes totalling 260.6 metres to collect 261 tonnes (wet) of selected material from three sites on the Pequizeiro deposit;
• 240 tonnes (wet) of selected material transported to the rotary kiln electric furnace (RKEF) pilot plant at Morro Azul, Minas Gerais state.

Horizonte chief executive officer Jeremy Martin said: "The completion of the bulk sample collection is another milestone as part of the ongoing feasibility work at Araguaia.

"The bulk sample has now been transported from site in eight articulated lorries to the south of Brazil where the pilot plant is located at Morro Azul. The next stage is very exciting as we start the commercial pilot campaign to produce nickel, which is targeted to commence at the end of April, 2015. We will feed this bulk sample for approximately 18 and 20 days, 24 hours a day, through the plant and produce ferronickel using the proven rotary kiln electric furnace process. This is last derisking step in demonstrating the project is amenable to the RKEF process, and the data and results will then be used to finalize the flow sheet for the commercial RKEF processing plant as part of the feasibility study. I look forward to keeping shareholders updated during this exciting phase."

Further details

Drill testing of selected bulk sample sites

Drilling was completed in 64 holes totalling 944 metres on four-metre drill grids across the four selected bulk sample sites. The aim of this drilling was to ensure that the in situ grade of the bulk sample is well understood and that the sample can be blended to match the chemistry of the commercial mining operation. All the results have now been received. Those results not previously reported are presented in the associated table.

Wide-diameter auger drilling

Twenty-three auger holes, one metre in diameter, with a total length of 260.6 metres were drilled at selected locations based on the results of the prebulk sample drilling. This auger drilling is a low-cost method of collecting bulk sample material, with each 0.7-metre drilled delivering approximately 0.5 dry tonne of sample material. Complete auger hole samples averaging 0.7 metre in length were collected over selected intervals totalling 202 metres. A total of 286 samples were collected with a total wet weight of 261 tonnes. Each sample was assayed and a final selection of 264 samples totalling 240 tonnes (wet) were selected for the bulk sample feed to the RKEF pilot plant. At an average free moisture content of 43.5 per cent H2O this will result in total dry sample of approximately 135 tonnes. The samples have been transported in eight lorries from the project site to the RKEF pilot plant located at Morro Azul, southern Brazil. The Morro Azul pilot plant was originally built by Anglo American and is now operated by IGEO and has been used by several major nickel companies (including Vale and Anglo American) for pilot testwork, staff training and final product testing. The full-scale pilot campaign is due to commence in late April, 2015.

                    BULK SAMPLE SITE TEST DRILLING 

Hole                    From (m)      To (m)   Width (m)        Ni %

PCA-DD-1436B                 NSI
PCA-DD-1437B                1.32       15.00       13.68        1.71
PCA-DD-1438B                2.23       15.00       12.77        1.82
PCA-DD-1439B                5.44       13.24        7.80        1.07
PCA-DD-1440B                1.08       15.03       13.95        1.74
PCA-DD-1441B                2.49       15.00       12.51        2.14
PCA-DD-1442B                1.25       12.20       10.95        1.72
PCA-DD-1443B                0.50       15.00       14.50        1.54
PCA-DD-1444B                1.54        9.92        8.38        2.42
PCA-DD-1445B                1.25        9.97        8.72        1.88
PCA-DD-1446B                1.06       15.01       13.95        1.63
PCA-DD-1447B                0.99        9.28        8.29        1.98
PCA-DD-1448B                6.20       13.25        7.05        1.04
PCA-DD-1449B                0.95       15.00       14.05        1.70
PCA-DD-1450B                 NSI
PCA-DD-1451B                2.79       14.33       11.54        1.15
PCA-DD-1452B                0.98       15.24       14.26        1.63
PCA-DD-1453B                1.11       15.00       13.89        1.48
PCA-DD-1454B                5.29       15.00        9.71        1.20
PCA-DD-1455B                 NSI
PCA-DD-1456B                1.10       14.66       13.56        1.58
PCA-DD-1459B                1.26       15.16       13.90        1.61
PCA-DD-1460B                5.26       11.97        6.71        1.09
PCA-DD-1461B                 NSI
PCA-DD-1462B                1.15       15.10       13.95        1.52
PCA-DD-1463B                5.04       13.64        8.60        1.12
PCA-DD-1464B                0.29       15.14       14.85        1.84
PCA-DD-1465B                0.00        9.26        9.26        1.99
PCA-DD-1466B                8.95       13.90        4.95        1.09
PCA-DD-1467B                1.10       15.05       13.95        1.53
PCA-DD-1468B                0.84       15.05       14.21        2.09
PCA-DD-1469B                1.61       10.48        8.87        1.80
PCA-DD-1470B                5.06       15.10       10.04        1.13
PCA-DD-1471B                1.10       15.05       13.95        1.58
PCA-DD-1472B                0.90       15.10       14.20        1.86
PCA-DD-1473B                1.55       15.00       13.45        1.62
PCA-DD-1474B                4.81       11.63        6.82        1.10
PCA-DD-1476B                0.65       13.63       12.98        1.90
PCA-DD-1479B                 NSI
PCA-DD-1480B                0.65       12.10       11.45        2.68
PCA-DD-1482B                0.00       12.41       12.41        2.01
PCA-DD-1483B                5.81       15.13        9.32        1.11
PCA-DD-1484B                0.00       15.00       15.00        1.89
PCA-DD-1485B                0.90       15.00       14.10        1.90
PCA-DD-1487B                1.50       15.00       13.50        1.81
PCA-DD-1488B                0.00       13.35       13.35        1.83
PCA-DD-1490B                1.54       15.00       13.46        2.09
PCA-DD-1493B                1.30       13.71       12.41        2.03
PCA-DD-1497B                0.00       12.42       12.42        1.76
             

The compositing of the nickel grades in the individual holes was completed across geological boundaries using a nickel cut-off of 1 per cent with a minimum intercept length of two metres and a maximum length of internal waste of two metres. All holes were vertical and, as these nickel laterite deposits are essentially flat lying, all widths given are true widths. Core recoveries in the mineralized sections met the appropriate standards for this style of mineralization and were generally greater than 90 per cent.

Sample preparation and analyses

Samples from drill core were crushed and pulverized at the ALS laboratory in Goiania and the resultant pulps analyzed at the ALS laboratory in Lima, Peru, using tetraborate fusion and X-ray fluorescence (XRF). Full QA/QC (quality assurance/quality control) procedures were followed, including the insertion of standards, duplicates and blanks. Check samples representing approximately 5 per cent of all the samples will be sent to another international laboratory for analysis by XRF.

Horizonte Minerals prepared this news release and David Hall, BSc, MSc, fellow, SEG, PGeo, a director of the company and qualified person under National Instrument 43-101, reviewed and approved the drill hole technical information.

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