Horizonte Minerals (AIM: HZM) said the exploration alliance with AngloGold Ashanti (LSE: AGG, NYSE: AU) is progressing well in the south Brazil. To date a large area of ground has been sampled which has resulted in the generation of a number of new gold anomalies.  Exploration licences have been applied for over these new targets and follow up work will commence to define drill targets.

In the first year of a potential three year exploration alliance which was announced in September 2009, Horizonte is undertaking a regional target generation programme in the prospective Campestre area of southern Brazil.  Through a combination of stream sediment sampling and rock chip analysis the company has identified nine priority gold and multi element anomalies that will be subject to further exploration work over the coming months. 

Horizonte CEO Jeremy Martin said: "AngloGold continues to recognise the significance of generating new resource targets through strategic exploration alliances such as ours, and we look forward to developing the programme and moving rapidly towards drilling in the second year."

Horizonte has submitted to the Departamento Nacional de Produção Mineral (DNPM), and has priority for licence applications for key areas defined by the sampling.

Ground applied for in Campestre totals 717 square kilometres and the total ground holding now under application in Brazil is 1,633 square kilometres.

Under the terms of the exploration alliance, AngloGold has agreed to fund, over the initial 12 months, US$900,000 for exploration expenditure.  This expenditure will include funding for prospecting in target areas and possible tenement applications.  All work will be conducted and managed by Horizonte.

AngloGold may, at its discretion, elect to provide a further US$1.4 million at the end of the initial 12 months followed by an additional US$3 million over the third year.  All expenditure will be in accordance with programmes and budgets approved by AngloGold. Any expenditure in a year in excess of these annual amounts will be deducted from the subsequent year's allocation.

On completion of the three year exploration programme each property or properties comprising a target area will be subject to a separate joint venture, with ownership interests in each target area JV apportioned 51 percent to AngloGold and 49 percent to Horizonte.  AngloGold may elect, at its discretion, to earn up to an additional 19 percent for a total of 70 percent in a target area JV by funding ongoing exploration expenditure to complete a pre-feasibility study in any target area within three years from that vesting date.

AngloGold may withdraw at any time without completing its expenditure obligations for a particular year once it has expended at least US$900,000.

Horizonte is an exploration and development company with a portfolio of gold, silver and base metal projects in producing mineral districts in Brazil and Peru.  The company is focused on generating and rapidly advancing new exploration projects to joint venture out to the major mining companies, providing mid-term cash flow which is then used to develop the business and pipeline projects.

Horizonte has four strategic partnerships: with AngloGold, Troy Resources NL (ASX, TSX: TRY), LGA Mineração e Siderugia Ltda and with Barrick Gold Corp (NYSE, TSX: ABX, TSX), through which it is developing its multi commodity portfolio and exploring further development opportunities in Brazil and Peru.

The company has two primary projects situated in the Carajas Mineral Province of northern Brazil being advanced towards a resource definition; the 22,556 hectare Lontra nickel project situated in the Araguaia mobile belt and the Tangara gold project, which the company signed a US$2.8 million option agreement to advance the project with Troy Resources in December 2007.  Horizonte is also developing in tandem with Barrick Gold, the 2,147 hectare Pararapa gold property located in the Department of Arequipa, southern Peru.

Additionally, Horizonte has a generative pipeline of early stage projects in development and has established a 50:50 joint venture company with LGA Mineração e Siderugia to finance new project development and the continued development of the Crixás, Goiás Velho, Sao Felix and the Araguari pipeline projects.

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