Horizonte Minerals (LON:HZM) said pilot production using ore from its Araguaia nickel project in Brazil produced high-grade ferronickel.
Feeding a rotary kiln electric furnace, 160 wet tonnes were processed over a continuous 11-day period.
Nickel recovery was 93% and crucially the end product was commercial. In fact the “ore performance exceeded our original expectations”, said chief executive Jeremy Martin.
Horizonte said there were no critical flaws in the process.
The full feasibility study that includes the furnace design is due next year.
CEO Martin said he was “delighted” with the results of the study, adding: “The pilot facility operated by our metallurgical consultants IGEO is one of the most comprehensive facilities globally, being able to offer the complete integrated RKEF flow sheet which simulates full commercial production.”
Horizonte’s Araguaia project contains 72mln tonnes of ore in the indicated category, grading 1.33% nickel.
However in September it unveiled plans to more than double the size of its holding in Brazil by acquiring struggling mining major Glencore’s neighbouring project, which weighs in at 105mln tonnes.