Horizonte's Araguaia remains on-budget and on-schedule

Horizonte Minerals said on Monday that the construction of the Araguaia Nickel Project remained on-budget and on-schedule.

The AIM-traded company said the project's Line 1 was expected to begin production in the first quarter of 2024, with over 50% of the construction programme already completed.

It said the project had demonstrated a strong safety performance, with no lost time injuries despite more than two million hours worked.

Earthworks had been completed, and detailed engineering was currently 95% of the way there.

Additionally, it said key long-lead items remained on track, with the rotary kiln and dryer en route to the site.

Pre-stripping activities had started on the main Pequizeiro Pit, with ore stockpiling expected to begin in the third quarter of 2023.

The Araguaia Nickel Project Line 1 remained on-budget, with 90% of the total capital awarded as at 31 March.

The project's Line 2 feasibility study, which was aiming to double nickel production from 14,500 tonnes to 29,000 tonnes per annum, remained on track for publication in the second half of the year.

“We are pleased to confirm we remain on-schedule for first metal at Araguaia targeting the first quarter of 2024; most importantly with a strong safety culture installed across the project,” said chief executive officer Jeremy Martin.

“There is currently a key focus on operational readiness as we build out the operational team and establish the systems, processes and training required for the start-up phase.”

Martin said alongside the construction progress at Araguaia Line 1, with the award of the Line 2 feasibility study contracts, the firm was “one step closer” to delivering on the low capex project that would double nickel production.

“Vermelho workflows remain centred around the feasibility study, with onsite data collection progressing well, feeding into the process engineering that is underway with Wood in Perth.

“We are pleased by the progress made to date on all workstreams and are confident in our ability to continue to deliver as we head toward first nickel in the first quarter of 2024.”

At 1105 BST, shares in Horizonte Minerals were up 0.28% at 141.4p.

Reporting by Josh White for Sharecast.com.