Horizonte files PFS for nickel-cobalt project in Brazil
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(Kitco News) - Horizonte Minerals (TSX:HZM) said Friday a pre-feasibility study for its Vermelho nickel-cobalt project shows a 38-year mine life estimated to generate total cash flows after taxation of $7.3 billion.
The estimated base case post-tax net present value is $1.7 billion and the internal rate of return is 26% assuming a flat nickel price of US$16,400 per tonne.
At full production capacity, the proposed mine is expected to produce an average of 25,000 tonnes of nickel and 1,250 tonnes of cobalt per annum utilizing the high-pressure acid leach process.
Initial capital cost estimate is $652 million including $97.7 million of contingencies.
Horizonte CEO Jeremy Martin said the priority now is to find financing.
"With the PFS now successfully completed, the priority now is to identify partners, secure funding and advance the project by undertaking a full feasibility study on Vermelho. We will look to the replicate the success achieved by the Coral Bay Nickel Corporation where the company is currently producing around 20,000 tonnes per year of nickel utilising a twin line HPAL plant. This was a low capex plant which has been operating successfully for the last 15 years."