Horizonte entered into definitive agreements to buy 100 per cent of the Vila Oito and Floresta nickel laterite projects in July last year.

The group will pay current owner Lara Exploration about C$2 million in shares for the two sites, which will give the Canadian group a 2.95 per cent stake in Horizonte. 

Lara has agreed to a minimum 12 month lock-up for the shares it will receive from 9 February. 

The 100 per cent owned Araguaia nickel project located to the south of the Carajas mineral district of northern Brazil is its key project.

Last month, the group published a new resource estimate showing more than 100 million tonnes including 39 per cent in the indicated category and totalled 24.2 million high grade tonnes averaging 1.6 per cent Ni.

The group is expected soon to release the results of its metallurgical testing on Araguaia, which will be the basis of a pre-feasibility study.

Horizonte already has two major partners in Canadian group with a 44 per cent stake and AngloGold Ashanti (LON:AGD), which is its partner on the gold portfolio. 

Horizonte and AngloGold Ashanti have a US$5.3 million exploration alliance to generate and develop new and existing gold targets within two areas of Brazil.

Veteran geologist Dr Owen Bavinton will join as a non-executive director to replace Nicholas Winer, who has left to pursue other interests.

A geologist, Dr Bavinton has 40 years experience in the industry and since 2003 has been group head of exploration and geology at South African giant Anglo American, overseeing and advising on acquisitions and exploration programmes on key projects. 

Horizonte said today he was instrumental to discoveries such as the Jacare nickel deposit in Brazil and the Los Sulfatos copper project in Chile.

He was also involved in the feasibility studies for the producing Barro Alto and Morro sem Bone nickel projects, both of which are also in Brazil.

Horizonte chief executive Jeremy Martin said: "I am delighted to welcome Owen to the Horizonte Board.  His vast experience and knowledge of the South American mining industry, primarily through his exposure at a senior level within Anglo American and WMC, will substantially increase our team's strength further as we advance the Araguaia nickel project through to the feasibility stage.”

The Araguaia nickel project in Brazil was recently upgraded to a resource of more than 100 million tonnes and is Horizonte’s key development.

Horizonte upgraded the resources estimate at Araguaia, in Brazil, by over 30% to more than 100 million tonnes, which included a 39% increase in indicated reserves.

Araguaia accounts for over 80% of the 30.6p per share value attributed by finnCap to the company.

The remainder consists of the two gold prospects Falcao and Strategic that are also in Brazil and where Anglogold Ashanti is Horizonte’s partner.

The house broker says while Araguaia still only has a resource statement, a “first pass” scoping study is in progress, which should contain estimates of the principal capital and operating costs in addition to mining and processing parameters.

It assumes construction starts in 2014 and that production starts in 2016, building to full capacity in 2017.

FinnCap added it sees further upside with the progressive reduction in the risk discount rate of its valuation as all three projects progress towards a development decision.

The broker added that all of the company’s operations are all in Brazil, a country with no recent history of expropriation and a positive attitude to mining development.

Horizonte chief executive Jeremy Martin today said: "We believe that the updated resource places Araguaia in the upper quartile of developing global nickel assets in terms of size and grade.“ 

“Further drilling is planned to convert additional material into the measured and indicated resource categories once the company has completed the PEA, its next milestone, which will give a range of project economics”.

The 43-101/ JORC compliant indicated resources are now estimated at 39.3 million tonnes grading 1.39% nickel using 0.95% Ni cut-off, while inferred resources are 60.9 million tonnes averaging 1.22% Ni using 0.95% Ni cut-off.

High grades in the indicated category at a 1.20% Ni cut-off grade totalled 24.2 million tonnes averaging 1.6% Ni.

Describing the upgrade as “excellent news” chief executive Jeremy Martin said the group had converted 39% of the resource to the indicated category and had demonstrated the existence of higher grade zones which are vital for early mine life economics.

"We believe that the updated resource places Araguaia in the upper quartile of developing global nickel assets in terms of size and grade.  Further drilling is planned to convert additional material into the measured and indicated resource categories once the company has completed the PEA, its next milestone, which will give a range of project economics,” he added.

The group added that work on the Preliminary Economic Assessment (PEA) is on schedule for the middle of this half of 2012 while initial metallurgical test work results to determine ore characteristics are due this quarter.

The new resource estimates was based on 1,087 boreholes for a total of 25,773 metres and included targets within the North, Centre, Pequizeiro, Baião and Lontra sectors of the greater Araguaia project.

The previous resource estimates at Araguaia was 76.6 million tonnes.

Reporting its interim results for the six months to the end of June 2011, Horizonte chairman David Hall said the firm had made exceptional progress in terms of developing its portfolio of assets in the world-class Carajas mining province in northern Brazil during the period. “We believe Horizonte’s investment case is currently stronger than ever,” he said. “The current value of Horizonte at time of writing... values our nickel resource at some US$0.02 per pound ignoring our gold projects. Our peers still trade in the range of US$0.06 to US$0.10 per pound. This positions Horizonte at a significant discount to the current market peer group.”

Horizonte said it delivered a number of significant milestones during its first half. At its flagship Araguaia nickel project it defined a maiden resource of 76.6 million tonnes grading at 1.35 per cent nickel. It also consolidated its position within the Araguaia region through the acquisition of the Vila Oito and Floresta nickel projects.

At its Falaco gold joint venture with AngloGold Ashanti it began a 3,000-metre drilling programme. And it also strengthened its balance sheet by raising £8.25 million, while also successfully listing on the Toronto Stock Exchange in June 2011 – a move that was part of management’s overall growth strategy to see Horizonte gain enhanced market exposure in North American capital markets.

Horizonte made a pre-tax loss of £676,533 during H1 2011, compared with a loss of £687,058 in H1 2010.

The firm said that the best intersection found at the project, which is located at Para Sate in north central Brazil, had 2.25 percent nickel over 17.3 metres. Other high-grade intersections include: 15.6 metres grading at 1.97 per cent, 13.8 metres grading at 1.96 percent and 19.6 metres grading at 1.84 percent.

Horizonte has now completed 327 drill holes, totalling 8,364 metres, in its 20,000 metre drilling programme at the deposit.

Meanwhile, the firm said its resource drilling programme is on target to deliver a resource update in the fourth quarter of this year.

“These ongoing results are excellent. We have numerous high grade intersections which will add greatly to the upcoming revised mineral resource estimate due in Q4 2011,” said Horizonte’s chief executive officer Jeremy Martin.

“Wardell-Armstrong International has been appointed to undertake the ‘preliminary economic assessment’ of the project and all elements, additional drill rigs, metallurgical test-work, environment and community relations which are required for this study are in place.

The Araguaia asset is undervalued relative to its peers and we hope with these ongoing developments that its true worth becomes realised by the market.”

Horizonte owns 100 per cent of the Araguaia nickel project, and the firm believes it has the potential to deliver a resource with size and grades comparable to other world-class projects in northern Brazil.

The company said today it had entered a definitive agreement to buy the projects south of the Carajás mineral district from certain affiliates of the Canadian-listed firm Lara Exploration Ltd (CVE: LRA).

Horizonte will pay for the projects a total of 8.5 million new shares. Based on the 20 day average price as at 18 January 2011 - the day of signing the agreement with Lara - this equates to around C$2 million, it said.

The two projects will form part of the ongoing 20,000 metre resource drilling programme at Araguaia giving the company the potential to add to the overall project resource target.

Horizonte's chief executive Jeremy Martin said: "We are pleased to have finalised this acquisition which further consolidates our position around our flagship Araguaia project.

"The Vila Oito target represents the western extension of one of the principal target areas on the Araguaia Project, from which we see immediate resource targets to follow up.

"The Floresta project has a well-defined geochemical anomaly that also requires follow up work.  As part of the ongoing 20,000m drill programme these new areas will be evaluated with the aim of adding additional resources on the project."

The Vila Oito project has a non-compliant NI 43-101 potential resource at a 1 percent nickel ('Ni') cut-off of between 10 to 11 million tonnes grading 1.3 to 1.4 percent Ni.

Meanwhile, the Floresta project is a well defined target where shallow auger drilling results included 6.7metres  grading 1.28 percent Ni.

Horizonte also said that application will be made to the London Stock Exchange for 8,500,000 new ordinary shares in the firm to be admitted to trading on AIM and to the Toronto Stock Exchange.

Paul Nagerl is a geologist with 24 years’ experience in the mineral resource industry.

Horizonte stressed his extensive Brazilian mining experience, which includes establishing Falconbridge Brazil and successfully implementing nickel and platinum group element programmes in Brazil that resulted in the discovery of the Serra de Tapas nickel laterite project in Araguaia.

Commenting on Nagerl’s appointment, Horizonte chairman David Hall said: "The ability of Horizonte to attract a person of Paul’s calibre speaks highly of the company’s growing reputation and the quality of our Araguaia nickel project in Brazil, which has a maiden resource of 76.6 million tons at 1.35 percent nickel and 0.06 percent cobalt.”

Horizonte is working towards delineating a resource in excess of 100 million tons of nickel laterite at its Araguaia and Lontra projects in Brazil. Together these nickel projects comprise 11 licences and licence applications across 73,000 hectares with eight significant mineralised zones.

Yesterday, Horizonte reported that it had reduced its first quarter loss before tax to £190,358 from £386,464 in Q1 2010.

Today, Horizonte’s shares were up 3.5 percent at 14.75 pence each.

Nickel and gold miner Horizonte Minerals (LON: HZM, TSX: HZM) has successfully completed the process required for its shares to be admitted to the Toronto Stock Exchange. Its shares will begin trading on the exchange tomorrow.

The firm’s management believes that the Toronto listing will help the company to attract further investors in North America as well as make it more attractive to UK retail investors who will now be able to put shares in Horizonte into a tax-free Individual Savings Account. (AIM-quoted shares qualify for ISA membership if they are also quoted on a ‘recognised stock exchange’ elsewhere in the world.)

Horizonte’s key projects include the Araguaia nickel laterite project in Brazil where work is focused on the delivery of a 100 million ton resource. The firm also has gold interests in the country.

“The completion of the TSX listing represents another milestone in the company's development since completing the transformational deal with Teck Resources acquiring the Araguaia nickel project in northern Brazil,” Horizonte’s chief executive officer, Jeremy Martin, “The board believes that the addition of the TSX listing is an appropriate platform from which to gain enhanced market exposure, and is confident that it will open up the North American capital markets to attract a wider institutional and retail following and in turn provide the company with greater share liquidity.”

Martin added: “The company is entering an exciting period as it moves closer to upgrading its inferred mineral resource at Araguaia of 76.6 million tons at 1.35 percent nickel towards a plus 100 million tons resource and then taking the project forwards to pre-feasibility stage.   In addition, there is an active gold portfolio in conjunction with our strategic alliance partner AngloGold Ashanti, and I believe Horizonte is in a solid position to hit its key milestones in 2011 and generate value for shareholders.”

Horizonte Minerals (LON:HZM) shares advanced around 6 percent in early deals after the latest high grade nickel results from the Araguaia in Brazil.

The junior exploration group said it is on target to delineate a resource target of 100 million tonnes by the end of the fourth quarter of 2011. It now plans to expand the drill campaign at the project.

These latest results come from an ongoing 8,000 metre programme that started back in October 2010. So far 54 drill holes have been complete for a total of 4,380 metres.

This morning the company unveiled the results from 28 drill holes, about 809 metres. The highlights included 18.6 metres grading 2.42 percent nickel, as well as 12.1 metres at 1/76 percent nickel, 13.3 metres at 1.74 percent nickel and 14.3 metres grading 1.72 percent.

"These high grade drill results have the potential to enhance the economic potential of our 100 percent owned Araguaia project,” chief executive Jeremy Martin

“With this in mind, we have increased the drill capacity on the project to fast-track the infill drilling programme.”  

It is expanding the programme up to a total of 20,000 metres, and it will include the original Lontra project targets that are next to Araguaia.

Horizonte has hired a second drill contractor who will add another two rigs to the programme in mid-May. Then there will be seven drill rigs working on the property.

Martin added: “(The drilling) will focus on upgrading a significant part of the initial resource of 76.6 million tonnes at 1.35 percent from the Inferred to Indicated category, and will look to define the extent of the high grade nickel zones.  

“We are also finalising contracts for the Preliminary Economic Assessment and Pre-Feasibility study and look forward to updating on this development in due course."

Horizonte Minerals this morning revealed that inflill drilling at Pequizeiro and Baião on the company’s Araguaia Project in northern Brazil had returned some encouraging nickel grades.It also said it is working to appoint a lead consulting group to oversee scoping and pre-feasibility work in April.

The group recently raised £8.25 million for fast-tracking exploration there, and has defined an initial resource of 76.6 tonnes at 1.35 per cent nickel.

The company expects to begin a preliminary economic assessment of Araguaia in the fourth quarter of this year. Also in train are plans to list Horizonte on the Toronto stock exchange, with the aim of opening the investor base up to a wider audience.

The update was contained in the company’s full-year results statement, which revealed the group made a pre-tax profit of £630,438 compared with a loss of £866,357 12 months earlier. It had cash and equivalents of £3.8 million at the year end, although the firm’s position has been strengthened by the recent placing.

However the period was notable for the progress made at Araguaia and Falcao, where it sealed a £4.5 million three-year deal to develop the project also in the Carjas region of Brazil. It is one of two gold alliances the company has with industry heavyweight AngloGold.

The pair recently completed the soil sampling programme on Falcão as well as an aerial geophysical survey.  

The initial results uncovered what is believed to be a “significant gold anomaly” of approximately three kilometres in length and between 300 and 600 metres in width with consistent gold values above 50 parts per billion.  There are also a number of samples with over one gram of gold per tonne.  

Chairman David Hall said: “We believe Horizonte's investment case is clearly evident: the newly enlarged Horizonte is now a leading nickel and gold focused exploration and development company in Brazil, with a world class nickel laterite project and an exciting portfolio of gold exploration assets with significant near term value.  

“This is in tandem with supportive mining majors and a strong treasury, both of which substantially de-risk Horizonte's financial exposure in the future, places us in a fantastic position to generate value for our shareholders during another exciting year for the growth of your company.”

Horizonte Minerals (LON:HZM) this morning said that one soil sample at its Falcao project in northern Brazil contained 13.5 grams of gold per tonne.

The company said this was an “isolated result” but revealed there were nine further samples where the gold content was in excess of 1 gram per tonne.

The soil sampling work at Falcao has enabled Horizonte to define a 3 kilometre long by 300 metre to 600 metre wide gold anomaly.

It is currently compiling the data to define its targets for a 3,000 metre diamond drill programme due to get underway in the second quarter.

Falcao is located in the southern Carajas District of Brazil and is a being developed as part of a joint venture with AngloGold Ashanti.

Geological mapping has been carried out over a 20 square kilometre area, which will play a critical role in defining the drill targets.

The same goes for data collated from an aeromagnetic survey, which is currently being enhanced by AngloGold's geophysical specialist group.

Separately, the company’s exploration licence for Falcao has been extended by a further three years by the mines department.

Horizonte’s chief executive Jeremy Martin said: "Since signing the JV deal with AngloGold in September last year we have completed a rapid first phase work programme on the project to define drill targets.  

“A detailed soil sampling and mapping programme has returned a significant gold anomaly, approximately 3 km in length and between 300 and 600 meters in width, with consistent gold values above 50 parts per billion.  

“There are also a number of samples with over 1 g/t gold - to obtain these levels in a soil sample is encouraging.

“Additionally, in January 2011 an airborne magnetic and radiometric survey was flown over the project area by Fugro which will assist in determining the main regional structural controls on this large alteration system and will further assist with defining drill targets.  

“All of the new data is now being integrated.  The aim is to initiate a 3,000 metre diamond drill programme in the second quarter of 2011 to test this large gold anomaly in partnership with AngloGold."