Horizonte Minerals (LSE:HZM) chief executive Jeremy Martin believes that the company is poised for strong growth moving into 2011.
The recently enlarged group is supported by two major international mining groups - Teck Resources (TSX:TCK, NYSE:TCK) and AngloGold Ashanti (JNB:ANG, NYSE:AU).
In August the company completed the transformational deal to acquire Teck’s Araguaia nickel project in northern Brazil. The deal saw Teck take a significant stake in the company. Concurrently, Horizonte combined the Araguaia with its Lontra project - giving the enlarged project a potential 100 million tonne resource with ’world-class’ grades - and raised £5.1m through a placing.
“It is our intention to rapidly develop our project portfolio,” Martin added.
“Defining a 100 million tonne resource at the Araguaia Nickel Project remains central to our objective as well as developing new gold targets through the strategic alliances with AngloGold.”
In today’s interim results for the six months ended 30 June 2010, chairman David J.Hall also emphasised that “the 'new' Horizonte is poised for growth”.
“We have a potential world class project that supports a £25 million valuation”, Hall commented.
“The upside on Araguaia with the resource definition, additional untested targets, and added value along the project development curve will, I believe, significantly increase Horizonte's standing in the market."
In the six month period, the exploration and mine development company reported a £687,058 loss (H12009: £415,690 loss), as it continued to invest in its key projects.