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Geology and Mineral Resources of the Araguaia Nickel Project, Brazil NI 43‐101 Technical Report
Marc‐Antoine Audet, P.Geo., Ph.D., Consulting Geologist
James Hogg, MSc, MAIG, Consulting Geologist, Micromine Consulting Services
Owen Mihalop, MCSM, BSc, CEng, MIMMM, Technical Director, Wardell Armstrong International
Horizonte Minerals plc
15 May 2011
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Table of Contents 1 Summary ........................................................................................................................................... 8
2 Introduction .................................................................................................................................... 11
2.1 Independent Consultants ........................................................................................................ 11
2.2 Units ......................................................................................................................................... 12
3 Reliance on Other Experts .............................................................................................................. 13
4 Property Description and Location ................................................................................................. 14
4.1 Licences and Tenure ................................................................................................................ 17
4.2 Agreements and Encumbrances .............................................................................................. 22
4.3 Environmental Obligations ...................................................................................................... 22
5 Accessibility, Climate, Local Resources, Infrastructure and Physiography ..................................... 24
6 History ............................................................................................................................................ 30
6.1 Brazil Nickel History ................................................................................................................. 30
6.2 Project History ......................................................................................................................... 31
6.2.1 Teck Araguaia Licences ..................................................................................................... 31
6.2.2 Horizonte Minerals Lontra Project ................................................................................... 37
6.2.3 Horizonte Minerals Araguaia Nickel Project (Combined Teck Araguaia and HM Lontra
licences) ........................................................................................................................................ 39
7 Geological Setting ........................................................................................................................... 41
7.1 Regional geology...................................................................................................................... 41
7.2 Project Geology ....................................................................................................................... 43
8 Deposit Type ................................................................................................................................... 46
9 Mineralization ................................................................................................................................. 48
9.1 Teck Licences Targets .............................................................................................................. 48
9.1.1 Physical Criteria ................................................................................................................ 48
9.1.2 Chemical Criteria .............................................................................................................. 52
9.1.3 Facies Distribution ............................................................................................................ 55
9.1.4 Average Mineralized Profiles ............................................................................................ 60
10 Exploration.................................................................................................................................... 71
10.1 Exploration in the Teck Araguaia Licences ............................................................................ 71
10.1.1 Topographic Surveys ...................................................................................................... 71
10.1.2 Surface Exploration and Mapping .................................................................................. 72
10.1.3 Drilling ............................................................................................................................. 72
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10.2 Exploration in the Horizonte Minerals Lontra Licences ........................................................ 80
10.2.1 Topographic Surveys ...................................................................................................... 80
10.2.2 Surface Exploration and Mapping .................................................................................. 80
10.2.3 Drilling ............................................................................................................................. 81
10.3 Exploration in Horizonte Minerals Araguaia Nickel Project (Combined Teck Araguaia and
HM Lontra Licences) ......................................................................................................................... 84
10.3.1 Core Drilling .................................................................................................................... 84
11 Sampling Method and Approach .................................................................................................. 90
11.1 Teck ........................................................................................................................................ 90
11.1.1 Core Sampling ................................................................................................................. 90
11.1.2 Reverse Circulation Drill Sampling .................................................................................. 91
11.1.3 Geological Logging .......................................................................................................... 92
11.1.4 Survey ............................................................................................................................. 92
11.1.5 Bulk Density .................................................................................................................... 93
11.1.6 Auger Sampling ............................................................................................................... 93
11.1.7 Soil Sampling ................................................................................................................... 93
11.2 Horizonte Minerals (Lontra Licences) .................................................................................... 93
11.2.1 Core Sampling ................................................................................................................. 94
11.2.2 Geological Logging .......................................................................................................... 96
11.2.3 Survey ............................................................................................................................. 96
11.2.4 Bulk Density .................................................................................................................... 96
12 Sample Preparation, Assaying, Security ....................................................................................... 98
12.1 Teck Licences ......................................................................................................................... 98
12.1.1 Routine Sample Analysis ................................................................................................. 98
12.1.2 Check Sample Analysis .................................................................................................... 99
12.1.3 Magnetic Susceptibility Analysis .................................................................................. 100
12.1.4 Bulk Density Analysis .................................................................................................... 100
12.2 Horizonte Minerals Lontra Licences .................................................................................... 103
12.2.1 Routine Sample Analysis ............................................................................................... 103
12.2.2 Check Sample Analysis .................................................................................................. 104
12.2.3 Magnetic Susceptibility and Gamma Log Analysis ....................................................... 104
12.2.4 Bulk Density Analysis .................................................................................................... 104
12.3 Security and Chain of Custody ............................................................................................. 105
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12.3.1 Teck ............................................................................................................................... 105
12.3.2 Horizonte Minerals ....................................................................................................... 106
13 QA/QC ......................................................................................................................................... 108
13.1 Teck Licence Data: QA/QC ................................................................................................... 108
13.1.1 Blanks ............................................................................................................................ 108
13.1.2 Standards ...................................................................................................................... 108
13.1.3 Duplicate Assays ........................................................................................................... 112
14 Data Verification ......................................................................................................................... 116
14.1 Teck Araguaia Project Data ................................................................................................. 116
15 Adjacent properties .................................................................................................................... 118
16 Mineral Processing and Metallurgical Testing ............................................................................ 120
17 Mineral Resource and Mineral Reserve Estimates ..................................................................... 121
17.1 Araguaia Project .................................................................................................................. 121
17.1.1 Database Integrity ........................................................................................................ 121
17.1.2 Mining Factor ................................................................................................................ 121
17.1.3 Cut‐off Grades .............................................................................................................. 121
17.1.4 Metallurgical Factors .................................................................................................... 121
17.1.5 Resource Modelling ...................................................................................................... 122
17.1.6 Statistics and Geostatistics ........................................................................................... 123
17.1.7 Unwrinkling and modelling ........................................................................................... 128
17.1.8 Classification ................................................................................................................. 130
17.1.9 Mineral Resources ........................................................................................................ 130
17.1.10 Mineral Reserves ........................................................................................................ 136
18 Other Data and Information ....................................................................................................... 137
19 Interpretation and Conclusions .................................................................................................. 138
19.1 Araguaia Project .................................................................................................................. 138
19.2 Lontra Project ...................................................................................................................... 139
20 Recommendations ...................................................................................................................... 140
21 References .................................................................................................................................. 141
22 Date and Signatures ................................................................................................................... 142
23 Certificate and Consent of Co‐Authors ....................................................................................... 143
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List of Figures
Figure 1: Araguaia Nickel Project Location Map ................................................................................... 15
Figure 2: Araguaia Nickel Project in relation to significant Regional Nickel Deposits .......................... 16
Figure 3: Horizonte Minerals Araguaia Nickel Project Licences Map. .................................................. 18
Figure 4: Forested Areas within the Araguaia Nickel Project ............................................................... 23
Figure 5: Araguaia Regional Climate Chart ........................................................................................... 25
Figure 6: Araguaia Project Regional Infrastructure .............................................................................. 27
Figure 7: View of general project area looking north‐northwest ......................................................... 28
Figure 8: View to the south‐east over Pequizeiro (main zone), large ferricrete plain surrounded by
valleys (fault zones), contact to sediments to the west and east of the plain, photo taken from
elevated position (silicified zone), semi‐dense forest covering the centre zone of Pequizeiro (main).
.............................................................................................................................................................. 29
Figure 9: View over the north part of Pequizeiro (main zone), view to the west, semi dense forest at
the border of mineralized zone, showing current position of 3 drill rigs on current drilling program
(Dec 2010), end of dry season. ............................................................................................................. 29
Figure 10: Araguaia Teck Soil Geochemistry – South Sector ................................................................ 32
Figure 11: Araguaia Teck Soil Geochemistry – Pequizeiro Sector ......................................................... 33
Figure 12: Araguaia Teck Soil Geochemistry – Central Sector .............................................................. 34
Figure 13: Araguaia Teck Soil Geochemistry – North Sector ................................................................ 35
Figure 14: Teck Araguaia Target Map ................................................................................................... 36
Figure 15: Horizonte Minerals Lontra Licences Soil Geochemistry and target map ............................. 38
Figure 16: Horizonte Minerals Araguaia Niquel Combined Target Map ............................................... 40
Figure 17: Regional Geological Setting ................................................................................................. 42
Figure 18: Teck Licences Geology Map ................................................................................................. 44
Figure 19: HM Lontra Licences Geology Map ....................................................................................... 45
Figure 20: Schematic tropical laterite profile (M. Elias, 2001).............................................................. 47
Figure 21: Ternary plot of all drill‐core samples using the ‘Geofacies’ classification, Fe, MgO, SiO2
(n=9,376) ............................................................................................................................................... 54
Figure 22: North Sector: Thickness distribution of limonite (top left), transition (top right), saprolite
(lower left) and all facies (lower right) ................................................................................................. 56
Figure 23: Centre sector: Thickness distribution of limonite (top left), transition (top right), saprolite
(lower left) and all facies (lower right) .................................................................................................. 57
Figure 24: Peguizeiro sector: Thickness distribution of limonite (top left), transition (top right),
saprolite (lower left) and all facies (lower right) .................................................................................. 58
Figure 25: South sector: Thickness distribution of limonite (top left), transition (top right), saprolite
(lower left) and all facies (lower right) .................................................................................................. 59
Figure 26: Araguaia Project: Thickness of mineralised profiles at 1.0%Ni cut‐off grade per sectors ... 68
Figure 27: Araguaia Project: Ni % grade of mineralised profiles at 1.0% Ni cut‐off grades per sectors
.............................................................................................................................................................. 69
Figure 28: Araguaia Project: Ni grade x Thickness of mineralised profiles at 1.0% Ni cut‐off grades per
sectors ................................................................................................................................................... 70
Figure 29: Teck Araguaia Project Airborne Magnetics – Analytical Signal ............................................ 74
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Figure 30: Teck Araguaia Exploration Map ........................................................................................... 75
Figure 31: Teck’s core drilling at the North sector ................................................................................ 76
Figure 32: Teck’s core drilling at the Centre sector .............................................................................. 77
Figure 33: Teck’s core drilling at the Pequizeiro sector ........................................................................ 78
Figure 34: Teck’s core drilling at the South sector ................................................................................ 79
Figure 35: Horizonte Minerals Lontra Exploration Map ....................................................................... 82
Figure 36: Pequizeiro West Drilling completed in the Horizonte Minerals Araguaia Nickel Project .... 85
Figure 37: Pequizeiro Drilling completed in the Horizonte Minerals Araguaia Nickel Project ............. 86
Figure 38: Teck bulk density core sample selection. (Samples wrapped in plastic wrap) .................. 100
Figure 39: Balance ............................................................................................................................... 101
Figure 40: Bulk density sample in cradle ............................................................................................ 101
Figure 41: Teck Araguaia Sample and Data Process Flow Sheet......................................................... 105
Figure 42: Ni% variation for the Standard STD4 ................................................................................. 109
Figure 43: Ni% variation for the Standard STD5 ................................................................................. 110
Figure 44: Ni% variation for the Standard STD6 ................................................................................. 110
Figure 45: Ni% variation for the Standard STD7 ................................................................................. 111
Figure 46: Ni% variation for the Standard STD8 ................................................................................. 111
Figure 47: Araguaia Project: Accuracy on duplicates: Ni .................................................................... 113
Figure 48: Araguaia Project: Accuracy on duplicates: Co ................................................................... 113
Figure 49: Araguaia Project: Accuracy on duplicates: Fe2O3 ............................................................. 114
Figure 50: Araguaia Project: Accuracy on duplicates: MgO ................................................................ 114
Figure 51: Araguaia Project: Accuracy on duplicates: Al2O3 .............................................................. 115
Figure 52: Araguaia Project: Accuracy on duplicates: SiO2 ................................................................ 115
Figure 53: Land tenure adjacent to Horizonte minerals holding ........................................................ 119
Figure 54: Characterisation of vertical grade trend for sector North ................................................. 126
Figure 55: Characterisation of vertical grade trend for sector Center ............................................... 126
Figure 56: Characterisation of vertical grade trend for sector Pequizeiro ......................................... 127
Figure 57: Characterisation of vertical grade trend for sector South ................................................. 127
Figure 58:Pequizeiro 3D model versus drillhole data (PCA‐DD‐0291) showing correlation between the
block model estimated grades and drillhole data .............................................................................. 129
Figure 59: Baiao 3D model versus drillhole data (PCA‐DD‐0184) showing correlation between the
block model estimated grades and drillhole data .............................................................................. 129
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List of Tables
Table 1: Inferred Mineral Resource at 1.0% Ni cut‐off grade. † DBD = Dry bulk density ....................... 9
Table 2: Qualified Person; Responsibility ............................................................................................. 12
Table 3: Araguaia and Lontra Nickel Projects Tenement Summary..................................................... 19
Table 4: Araguaia and Lontra Nickel Projects Tenement Coordinates ................................................. 20
Table 5: Major Nickel Projects in Brasil (modified from Owen et al, 2010) .......................................... 30
Table 6: Geological facies descriptions and codes applied to Teck Licences ........................................ 50
Table 7: Geological description of laterite and bedrock facies ............................................................. 51
Table 8: Average composition per facies based on the Teck Diamond Drilling .................................... 52
Table 9: Chemical criteria for assigning Geofacies to samples ............................................................. 53
Table 10: Average thickness of laterite horizons at the Araguaia Project ............................................ 55
Table 11: Thickness of mineralised profiles at various Ni cut‐off grades ............................................. 60
Table 12: Sector North: Mineralised intercepts at a 1.0% Ni cut‐off grade ......................................... 61
Table 13: Sector Centre: Mineralised intersects at a 1.0% Ni cut‐off grade ......................................... 62
Table 14: Sector Pequizeiro: Mineralised intersects at a 1.0% Ni cut‐off grade .................................. 64
Table 15: Sector South: Mineralised intersects at a 1.0% Ni cut‐off grade .......................................... 66
Table 16: Teck’s exploration work at the Araguaia Project .................................................................. 71
Table 17: Exploration work completed by Horizonte Minerals from 2006 to 2009 at Lontra Project . 80
Table 18: Horizonte Minerals Lontra project; Mineral intersects at 1% Ni cut‐of‐grade ..................... 83
Table 19: Araguaia Nickel Project Infill Drilling. Mineralised Intercepts at a 1% Nickel Cut‐off ........... 87
Table 20: Dry and wet bulk densities and moisture content (October 2010), as used in the current
resource and reserve estimates .......................................................................................................... 102
Table 21: Average composition of standards inserted in sample submission series by Teck ............ 109
Table 22: Summary statistics of re‐assay precision on 668 samples submitted to SGS Laboratory ... 112
Table 23: Correlation statistics between elements for the limonite facies at the Araguaia project.
Strong and moderate correlations are highlighted in red and green, respectively ............................ 124
Table 24: Correlation statistics between elements for the transition facies at the Araguaia project.
Strong and moderate correlations are highlighted in red and green, respectively ............................ 124
Table 25: Correlation statistics between elements for the saprolite facies at the Araguaia project.
Strong and moderate correlations are highlighted in red and green, respectively ............................ 124
Table 26: Araguaia Project: Inferred Mineral Resources as of October 2010 .................................... 131
Table 27: Inferred Mineral Resources for the North Sector as of October 2010 ............................... 132
Table 28: Inferred Mineral Resources for the Center Sector as of October 2010 .............................. 133
Table 29: Inferred Mineral Resources for the Pequizeira Sector as of October 2010 ........................ 134
Table 30: Inferred Mineral Resources for the South Sector as of October 2010 ............................... 135
Table 31: Inferred Mineral Resource at 1.0% Ni cut‐off grade. † DBD = Dry bulk density ................. 138
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1 Summary
The Horizonte Minerals plc Araguaia Nickel Project is based on nickel laterite development on the
eastern margin of Para State, Brazil to the north of the town of Conceição do Araguaia. The Project
area comprises 11 Exploration Licences, 4 held by Horizonte Minerals do Brasil Ltda and 7 held by
Teckcominco Brasil S.A (now Araguaia Niquel Mineração Ltda). Both companies are now 100%
owned subsidiaries of Horizonte Minerals plc (Horizonte) after an agreement concluded in August
2010 in which Horizonte Minerals plc acquired Teck Cominco Brasil S.A., a company that owned
100% of the original Teck Araguaia project.
Nickel laterite deposits develop by chemical weathering of peridotites in tropical and sub‐tropical
climatic zones. The laterites within the project area are developed on peridotites contained within
the metasediments of the Couto Magalhães Formation. This formation forms the western part of the
Neo Proterozoic Araguaia Fold Belt, a north‐south orogenic zone along the contact of the Amazon
Craton to the west and the San Francisco Craton to the east. The mafic/ultramafic complexes within
this formation, of which the peridotites are a part, are made up of elongate bodies varying in length
from hundreds of metres to tens of kilometres and can extend up to a kilometre in width. They occur
in thrusts within the metasediments and have been interpreted to represent tectonic remnants of
ophiolites. Several significant nickel laterite deposits occur within this region of Brazil including
Xstrata’s Serra do Tapa/Vale dos Sonhos deposits that are also located within the Araguaia Fold Belt
80km to the north of the project area
Exploration by Teck in the 7 Teckcominco Brasil S.A. licences between 2006 and November 2008
included geological prospecting and stream sediment sampling, airborne geophysical surveys, soil
sampling, RC drilling and diamond drilling. This resulted it the identification and evaluation of 12
nickel laterite targets. These were tested by 489 diamond drill holes totalling over 11,400m. The
principal targets were drilled on 200m x 200m grids. Eight of these targets are of sufficient size and
have sufficient quality data collected to enable the resource estimation reported here.
Exploration by Horizonte in the 4 Horizonte Minerals do Brasil Ltda licences, collectively called the
Lontra Project, from 2007 to 2008 included stream sediment and soil sampling, ground
magnetometry, auger drilling and diamond core drilling. Three principal target areas were identified
on which 63 diamond drill holes totalling 1,300m were completed. WAI considers that the results of
the 2008 drilling programme are very encouraging and demonstrate that the near surface laterite
developments at the Northern and Raimundo zones could potentially contain a sizeable nickel
resource. The targets remain open, and extensions and subsidiary targets at both sites are as yet
untested (Owen et al, 2010).
Mineral resource estimates for the principal laterite targets within the 7 licences held by
Teckcominco Brasil S.A. were calculated under the direction of Consulting Geologist Marc‐Antoine
Audet, P.Geo., Ph.D., who served as Qualified Person responsible for preparing the sections on the
mineral resources for this Technical Report.
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Within the 7 Teckcominco Brasil S.A. licences surface limonite facies of all areas of the concessions
were mapped and reconnaissance‐drilled at a nominal spacing around 200 m. Teck applied a
comprehensive QA/QC program to validate assays results. The program included the insertion of
duplicate samples, blanks and standards at pre‐designed intervals.
Dr Audet reviewed and compiled information on logging, QA/QC, densities, sampling and assays
performed by Teck for the Araguaia project. The Araguaia project’s resource database meets
industry standards and is compatible with the JORC and CIM codes for public reporting.
The mineral resource estimate of Araguaia Nickel Project laterite deposits was based on 489 core
boreholes for a total of 11,404 meters and includes targets within the North, Centre, Pequizeiro and
South Sectors. The model integrates the concept of geological horizons (limonite, transition and
saprolite) to create a 3D block model. Estimation was conducted in unwrinkled space using Inverse
Distance at Power of 2 (ID2) using Gemcom software. Mineral resources for the project are reported
using 1.0% Ni cut‐off values. The Inferred Mineral Resources estimated are reported in Table 1.
Table 1: Inferred Mineral Resource at 1.0% Ni cut‐off grade. † DBD = Dry bulk density
DBD† Tonnage Nickel Ni Co Fe MgO SiO2 Al2O3 Cr2O3
t/m3 (,000) t tonnes % % % % % % %
Araguaia laterite deposits
Limonite 1.34 13,273 162,793 1.23 0.13 35.67 3.41 20.70 9.50 2.55
Transition 1.36 31,110 457,190 1.47 0.06 18.75 13.34 41.04 5.18 1.32
Saprolite 1.47 32,219 412,664 1.28 0.04 12.09 23.42 42.24 3.82 0.85
Total 76,604 1,032,647 1.35 0.06 18.88 15.86 38.02 5.36 1.34
Current planned and budgeted (£1.5M {C$2.3M}) work in progress on the Araguaia Nickel Project
includes:
An 8,000m diamond drilling programme designed to reduce the drill spacing on the Pequizeiro
West, Pequizeiro and Baião targets to 141m x 141m and then on the Pequizeiro and Baião
targets to 100m x 100m. To date a total of 91 holes (2,433.6m) have been completed with assay
results received on the Pequizeiro West and Pequizeiro targets. Intercepts using a 1% nickel cut‐
off for these holes are presented in Table 19. Figures 36 and 37 show the location of these holes.
A NI 43‐101 compliant mineral resource estimate on the Pequizeiro and Baião targets based on
100m x 100m diamond drilling.
Compilation of all the historical exploration data over the entire project and reconnaissance
exploration and mapping over priority targets.
Mineralogical test program on selected samples of the major mineralised facies including optical
microscopy, quantitative evaluation of materials using scanning electron microscopy (QEMSCAN)
analysis, X‐ray diffraction (XRD) analysis and electron microprobe (EMP) analysis
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It is recommended that further evaluation of the Araguaia Nickel Project potential will include:
Environmental baseline study
Preliminary metallurgical process studies to identify the optimum processing route to maximise
the economic return.
Infill drilling in the Lontra Sector suitable for a first mineral resource estimation.
Reduce drill spacing on all significant targets to 141m x 141m prior to selection of targets for
additional 100m x 100m drilling.
Infill drilling on the Pequizeiro and Baião targets if closer spacing than 100m x 100m is required
to raise the resource estimations to an Indicated Mineral Resource category.
Reconnaissance drilling on selected targets from reconnaissance exploration and mapping.
Scoping Study to determine order of magnitude economic parameters
Airborne laser topographical survey (2 metre contours)
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2 Introduction
2.1 Independent Consultants
Micromine Consulting Services (MCS), a division of Micromine Proprietary Limited, is an internationally
recognised, independent geology and mining consultancy with consulting offices in Perth where it
was established in 1986, Beijing where it has operated since 2000 and in the United Kingdom where
it has operated since 2003.
MCS, its directors, employees and associates neither has nor holds:
any rights to subscribe for shares in Horizonte Minerals Plc either now or in the future
any vested interests in any concessions held by Horizonte Minerals Plc
any rights to subscribe to any interests in any of the concessions held by Horizonte Minerals Plc, either now or in the future
any vested interests in either any concessions held by Horizonte Minerals Plc or any adjacent concessions
any right to subscribe to any interests or concessions adjacent to those held by Horizonte Minerals Plc, either now or in the future
Micromine Consulting Services’ only financial interest is the right to charge professional fees at
normal commercial rates, plus normal overhead costs, for work carried out in connection with the
investigations reported here. Payment of professional fees is not dependent either on project
success or project financing.
The mineral resource estimates for the Araguaia project were estimated by Marc‐Antoine Audet
P.Geo., PhD., Geological Consultant. M. Audet served as the Qualified Person responsible for
preparing specific section as tabulated below. In October 2010 Dr. Audet visited the project office
and the licences previously held by Teck and reviewed the data from the Teck licences used in the
resource estimation presented in this report. During the field visit, Dr Audet review and compiled
information on logging, QA/QC, densities, sampling and assays performed by Teck for the Araguaia
project. M. Audet has also reviewed the data from the drilling completed since October 2010 and
calculated the mineralized intercepts from this drilling based on a 1% nickel cut‐off.
The reporting of the exploration work undertaken by Horizonte Minerals in the Lontra Project
licences has been undertaken by Mr. Owen Mihalop during the site visit undertaken by Wardell
Armstrong International (WAI) during the period 21 – 23 January, 2010. WAI inspected exploration
activities relating to mapping, geophysical and geochemical surveys and drilling. The findings of
these reviews are documented in this report.
This report has been prepared to be filed on SEDAR in support of the Mineral Resource estimation by
Dr. Audet in compliance with NI 43‐101
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The responsibilities for the preparation of certain sections of this Technical Report are shown in
Table 2 and, notwithstanding anything else in the Technical Report, none of the authors accept any
responsibility or liability for any sections of the Technical Report that were prepared by the other
party. Where the responsibility for a section is assigned to more than one author indicates that parts
of the section where authored by different persons.
The authors have not carried out due diligence on the Brazilian Mining Code and Regulations and have not verified the commercial, environmental and legal aspects of Horizonte Minerals mineral tenure and surface rights. Horizonte Minerals provided the details on the properties, agreements, obligations and permitting given in section 4 ‘Property description and location’.
Further, the authors have relied upon information from Horizonte Minerals Inc. staff and internal
reports within areas such as previous exploration, infrastructure, environmental and legal matters in
preparing other parts of the report.
Table 2: Qualified Person; Responsibility
Qualified Person Responsibility for Sections
Marc‐Antoine Audet 1, 2, 8, 9, 10.3,12.1.4, 13, 14, 16, 17, 18, 19.1, 20, 22, 23
James Hogg 1, 2–7, 10–12, 15, 18, 19, 20, 21, 22, 23
Owen Mihalop 1, 2, 3, 5, 6, 10, 11, 18, 19.2, 20, 22, 23
2.2 Units
All units of measurement used in this report are metric unless otherwise stated. Tonnages are reported as metric tonnes (“t”), base metal values (nickel and cobalt) are reported in weight percent (“%”) or parts per million (“ppm”) precious metal values in grams per tonne (“g/t”) or parts per million (“ppm”). Other references to geochemical analysis are in parts per million (“ppm”) or parts per billion (“ppb”) as reported by the originating laboratories. Coordinate system for the Araguaia project is the Zone 22 UTM S‐America Datum 1969 (UTMSAD69).
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3 Reliance on Other Experts
The main sources of literature provided to the authors and sourced for the compilation of this report
were the following:
Competent Person’s Report on the Assets of Horizonte Minerals Plc, Brazil, July 2010; M L Owen et al; Independent Competent Persons Report by Wardell Armstrong International Ltd.
Technical Report on the Araguaia Nickel Exploration Project, Para State, Brazil, January 2010; M. Bennell; NI43‐101 report by Lara Exploration Limited
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4 Property Description and Location
The current Araguaia Nickel Project combines the Lontra and Araguaia project licences which until
August 2010 were owned and operated independently by Horizonte Minerals and Teck respectively.
The property is located in the south east of Para State, Brazil, approximately 25km northwest of the
nearest town Conceição de Araguaia and approximately 10km to the west of the roughly north‐
south trending Rio Araguaia. Para State is approximately 2,100 kilometres north of Brasilia (Figure
1).
The project area is centred about the following coordinates:
WGS 84 Latitude 07° 54' 9.0" South; UTM SAD 69 22S 9126200mN
WGS 84 Longitude 49° 26' 1.8" West; UTM SAD 69 22S 672700mE
Carajas mineral province is situated approximately 200 kilometres north of the Araguaia project.
Xstrata’s Serra do Tapa and Vale dos Sonhos nickel laterites are approximately 80 kilometres to the
north (Figure 2).
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Figure 1: Araguaia Nickel Project Location Map
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Figure 2: Araguaia Nickel Project in relation to significant Regional Nickel Deposits
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4.1 Licences and Tenure
The Araguaia Nickel Project is wholly owned by Horizonte Minerals Plc through its Brazilian
subsidiary Araguaia Niquel Mineração Ltda. The exploration licence area extends approximately
40km in a north‐south direction, and 35km in an east‐west direction and cover an approximate
surface area of 730km². The project comprises 7 exploration licences from the previous Araguaia
nickel project owned and operated by Teck and 4 exploration licences from the adjacent Lontra
project discovered, owned and operated by Horizonte Minerals.
As part of the transaction that took place in August 2010 to acquire the Teck Araguaia licences,
Horizonte Minerals Plc took control of 100% of the Lontra exploration licences, previous held in
partnership with a number of Brazilian entities.
Tenement details and location coordinates are presented in Figure 3 and Tables 3 and 4 below.
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Figure 3: Horizonte Minerals Araguaia Nickel Project Licences Map.
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Table 3: Araguaia and Lontra Nickel Projects Tenement Summary.
Procedure Request Holder Area (Ha) Phase Publication
Date Expiration
Date Project Comment
Number
851.025/2006 HM do Brasil Ltda 1,970.48 1st 14/07/2008 14/07/2011 Lontra
851.026/2006 HM do Brasil Ltda 87.99 Application Pending + 3 years Lontra
850.277/2004 HM do Brasil Ltda 10,000.00 2nd 03/02/2006 05/03/2013 Lontra
850.278/2004 HM do Brasil Ltda 10,000.00 2nd 03/02/2006 05/03/2013 Lontra
850.501/2008 TECKCOMINCO BRASIL
S/A/ 2,560.33 1st 16/09/2009 16/09/2012 Araguaia
850.514/2004 TECKCOMINCO BRASIL
S/A/ 9,861.32 2nd 17/02/2005 08/09/2012 Araguaia
850.515/2004 TECKCOMINCO BRASIL
S/A/ 9,361.30 2nd 17/02/2005 08/09/2012 Araguaia
850.516/2004 TECKCOMINCO BRASIL
S/A/ 10,000 2nd 17/02/2005 08/09/2012 Araguaia
850.517/2004 TECKCOMINCO BRASIL
S/A/ 9,656.54 2nd 17/02/2005 08/09/2012 Araguaia
850.518/2004 TECKCOMINCO BRASIL
S/A/ 9,984.71 2nd Pending + 3 years Araguaia
Exploration report published 07/10/2008
850.682/2007 TECKCOMINCO BRASIL
S/A/ 5,690.06 1st 03/09/2010 03/09/2013 Araguaia
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Table 4: Araguaia and Lontra Nickel Projects Tenement Coordinates
Project Procedure Latitude Longitude
Project Procedure
Latitude Longitude Number Number
Lontra 851.025/2006 -07°47'16''038
-49°35'54''900 Lontra 851.026/2006 07°50'41''498
-49°33'13''712
-07°47'16''029
-49°33'11''790
-07°50'41''498
-49°33'03''903
-07°47'00''584
-49°33'11''792
-07°52'16''811
-49°33'03''902
-07°47'00''583
-49°32'59''961
-07°52'16''811
-49°33'13''712
-07°49'32''662
-49°32'59''943
-07°50'41''498
-49°33'13''712
-07°49'32''669
-49°34'28''466
-07°48'56''212
-49°34'28''468
-07°48'56''214
-49°35'54''900
-07°47'16''038
-49°35'54''900
Project Procedure Latitude Longitude
Project Procedure Latitude Longitude
Number Number
Lontra 850.277/2004 -07°48'43''558
-49°27'37''506 Lontra 850.278/2004
-07°48'43''558
-49°27'37''506
-07°48'43''523
-49°33'03''908
-07°54'09''069
-49°27'37''506
-07°43'18''011
-49°33'03''838
-07°54'09''033
-49°33'03''978
-07°43'18''046
-49°27'37''506
-07°48'43''523
-49°33'03''908
-07°48'43''558
-49°27'37''506
-07°48'43''558
-49°27'37''506
Project Procedure Latitude Longitude
Project Procedure Latitude Longitude
Number Number
Araguaia 850.501/2008 -07°57'34''285
-49°30'54''123 Araguaia 850.514/2004
-07°49'52''059
-49°23'01''645
-07°59'56''623
-49°30'54''123
-07°49'52''016
-49°16'59''323
-07°59'56''615
-49°29'09''903
-07°54'54''741
-49°16'59''250
-08°00'01''516
-49°29'09''902
-07°54'54''762
-49°18'45''193
-08°00'01''516
-49°29'13''645
-07°55'23''733
-49°18'45''188
-08°01'42''102
-49°29'13''637
-07°55'23''754
-49°22'08''917
-08°01'42''102
-49°29'13''679
-07°53'18''432
-49°22'08''922
-08°00'01''511
-49°29'13''679
-07°53'18''433
-49°22'28''999
-08°00'01''498
-49°32'29''609
-07°50'22''983
-49°22'29''003
-08°01'42''124
-49°32'29''623
-07°50'22''983
-49°23'01''645
-08°01'42''124
-49°32'29''658
-07°49'52''059
-49°23'01''645
-08°01'06''546
-49°32'29''663
-08°01'06''550
-49°33'37''140
-07°59'46''476
-49°33'37''140
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Project Procedure Latitude Longitude
Project Procedure Latitude Longitude
Number Number
-07°59'46''476
-49°33'34''730 Araguaia 850.516/2004
-08°04'09''567
-49°21'26''905
-07°59'11''321
-49°33'34''743
-08°04'09''530
-49°26'53''510
-07°59'11''306
-49°32'54''579
-07°58'44''023
-49°26'53''437
-07°58'25''735
-49°32'54''596
-07°58'44''058
-49°21'26''905
-07°58'25''749
-49°33'37''140
-08°04'09''567
-49°21'26''905
-07°57'33''049
-49°33'37''140
-07°57'33''030
-49°29'09''934
-07°57'34''278
-49°29'09''934
-07°57'34''285
-49°30'54''123
Project Procedure Latitude Longitude Project Procedure Latitude Longitude Number Number
Araguaia 850.515/2004 -07°49'52''059
-49°23'01''645 Araguaia 850.682/2007
-08°02'26''221
-49°31'01''661
-07°49'17''881
-49°23'01''645
-08°02'26''217
-49°29'13''634
-07°49'17''880
-49°22'29''004
-08°00'01''516
-49°29'13''645
-07°48'12''778
-49°22'29''006
-08°00'01''499
-49°26'53''473
-07°48'12''777
-49°21'56''366
-08°04'09''823
-49°26'53''432
-07°47'40''226
-49°21'56''367
-08°04'09''813
-49°26'01''628
-07°47'40''224
-49°21'23''729
-08°04'18''559
-49°26'01''627
-07°44'21''662
-49°21'23''741
-08°04'18''564
-49°26'23''258
-07°44'21''620
-49°16'48''959
-08°05'10''739
-49°26'23''248
-07°49'52''014
-49°16'48''878
-08°05'10''740
-49°26'25''316
-07°49'52''059
-49°23'01''645
-08°05'01''091
-49°26'25''318
-08°05'01''117
-49°31'01''661
-08°02'26''221
-49°31'01''661
Project Procedure Latitude Longitude Project Procedure Latitude Longitude Number Number
Araguaia 850.517/2004 -07°53'18''467
-49°22'09''104 Araguaia 850.518/2004
-07°52'16''338
-49°33'03''716
-07°58'43''977
-49°22'09''104
-07°54'01''804
-49°33'03''716
-07°58'43''941
-49°27'35''637
-07°54'01''768
-49°27'35''450
-07°53'38''243
-49°27'35''570
-07°57'33''024
-49°27'35''403
-07°53'38''271
-49°24'31''335
-07°57'33''055
-49°34'59''793
-07°53'18''460
-49°24'31''333
-07°52'16''334
-49°34'59''768
-07°53'18''467
-49°22'09''104
-07°52'16''338
-49°33'03''716
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4.2 Agreements and Encumbrances
Agreements are in place with local farm landholders that allows access to land and conduct
exploration with the minimum of disturbance.
4.3 Environmental Obligations
The area is not subject to any environmental or native title reserves. There is a proposal to construct
a hydroelectric dam (Barragem Santa Isabel) on the Rio Araguaia. This would inundate some of the
river margins associated with the Pau d’Arco river; however, this may also provide a significant
opportunity as a local source of hydroelectric energy (Owen et al, 2010).
In terms of the Brazilian environmental regulations a permit is required for any exploration activities
that require the cutting of trees of diameter greater than 12 cm. For trees of less than 12 cm in
diameter no permit is required although a policy of minimum disturbance must be adhered to.
Figure 4 shows the forested areas with the project licences
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Figure 4: Forested Areas within the Araguaia Nickel Project
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5 Accessibility, Climate, Local Resources, Infrastructure and Physiography
The Araguaia Nickel Project area is located approximately 25kms north of the sealed road that links
the towns of Conceição de Araguaia and Redenção. This road is the main access route from the
major centres of Brasilia, São Paulo and Belo Horizonte to Carajas (Owen et al, 2010). The project
area is cut by the all weather unsealed road which links Conceição de Araguaia with Floresta
approximately 20kms to the northwest of the project.
The project can be reached by air from São Paulo via Palmas, the capital of Tocantins State situated
to the East of Rio Araguaia. From there it is a further 400km drive on mainly sealed highway to the
main Araguaia field office in Conceição de Araguaia. The project area is approximately 45 minutes
drive from the field office in Conceição de Araguaia.
Alternatively regular scheduled flights are available from the airports located at Maraba, Palmas,
Carajas, Conceição and Redenção (Owen et al, 2010).
The climate in the region is tropical and humid with two distinct seasons. Dry season extends from
June to October and the rainy season from November to May. Annual rainfall is approximately
1600mm and the average daily temperature is 25°C, but may be cooler during June and July
(Bennell, 2010).
Typical annual temperature, rainfall and daylight charts are presented in Figure 5 below (reproduced
from www.climate‐charts.com).
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Figure 5: Araguaia Regional Climate Chart
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Conceição do Araguaia is the largest population centre in the surrounding area and the city contains
a number of banks, a post office, several basic hospitals, hotels, restaurants and other local
amenities. Araguaina (175km distant) is the nearest major business centre, however most business
activities are conducted through the city of Goiania (1000km distant). Population density within the
project area is sparse and comprised solely of isolated farms.
The project is well served by rough dirt roads navigable in a 4x4 vehicle, numerous farm tracks criss‐
cross the area making access reasonably easy.
Carajas, 200km to the north is the railhead and point of loading of the iron ore to be embarked at
the deepwater port facilities of São Luis. The Araguaia River is being developed as a water transport
route with locks currently under construction at the Tucuruí dam allowing barging between Marabá
and the shipping port of Barcarena on the mouth of the Amazon. There are also plans of building a
spur line from the north‐south railway line currently under construction and linking Goiania with
Belem (Figure 6). This is due for completion in 2015 (Owen et al, 2010).
The area as a whole is well serviced with power. Electricity would be derived from a major dam and
power station at Tucuruí, which is linked into the national grid. The dam lies on the Rio Tocantins,
about 185km north of Marabá. This has 6,000MW of installed capacity and can be expanded to
12,000MW. This energy source supplies power to the region, including Vale’s iron mining complex
at Carajás (230kV lines) and to the major substation at Colinas, 100km east of the project, which
distributes power to and from eight, 500kV lines (Owen et al, 2010). High capacity power lines serve
Conceição however the level of supply is generally inconsistent with frequent drops in power and
outages especially in bad weather. Rural locations are served with a two‐phase power supply.
Mobile phone coverage is reasonable in Conceição but patchy across the project area. There are
adequate Internet links in Conceição, and Internet connection at the HM field camp within the
project area.
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Figure 6: Araguaia Project Regional Infrastructure
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The Araguaia area is marked by rolling hills and long sharp strike ridges, with elevations between 300 and 450 m (amsl). Local relief can be more than 100m in the Conceição block (Bennell, 2010). The physiography is typically characterised by valleys separating elevated level plateaus that
represent old erosion surfaces. The targets already outlined are within these plateau regions and as
such are generally level areas. The terrain across the project area as a whole is reasonably level and
gradients via which access to the plateaus is possible are moderate to low.
The original Amazon rain forest has been cleared from most of the area and the land is used for
extensive cattle ranching. Some of the plateaus are used for speciality crops such as pineapple
plantations (Bennell, 2010).
Views of typical relief, vegetation and land use are presented in the following photographs Figures 7
to 9 below.
Figure 7: View of general project area looking north‐northwest
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Figure 8: View to the south‐east over Pequizeiro (main zone), large ferricrete plain surrounded by valleys (fault zones), contact to sediments to the west and east of the plain, photo taken from elevated position (silicified zone), semi‐dense forest covering the centre zone of Pequizeiro (main).
Figure 9: View over the north part of Pequizeiro (main zone), view to the west, semi dense forest at the border of mineralized zone, showing current position of 3 drill rigs on current drilling program (Dec 2010), end of dry season.
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6 History
6.1 Brazil Nickel History
Brazil is a major producer of primary products and exporter of iron ore, niobium, manganese,
aluminium, kaolin and tin and is poised to become a major nickel and copper producer with the
development of a number of world class nickel projects (Owen et al, 2010).
The Carajas Mineral province which hosts the Horizonte Minerals Araguaia Nickel Project is a world
class mining province with major iron, nickel, copper and gold deposits. As a result, the region has
excellent infrastructure developed to service the mining activity. The region has typically been
dominated by iron and gold deposits however a major exploration drive during the last 15 years has
led to the discovery and development of a number of nickel laterite projects. As a result a number
of major companies are present including Vale, Anglo American and Xstrata, all of which have
significant nickel projects in the region that are in the advanced exploration or development stage
(Owen et al, 2010).
The Carajas Mineral Province currently plays host to three major nickel projects in the advanced
exploration or development phase (Owen et al, 2010). These major projects include Anglo
American’s Jacare deposit, Vale’s Vermelho and Onca‐Puma projects and Xstrata’s Serra de Tapa
deposit (Figure 2). The Serra de Tapa and neighbouring Vale dos Sonhos projects are located
approximately 70kms to the north of the Araguaia Lontra project (Owen et al, 2010).
A 2010 status summary of these projects is included in Table 5 which lists major Brazilian nickel
projects below (modified from Owen et al, 2010).
Table 5: Major Nickel Projects in Brasil (modified from Owen et al, 2010)
Project Company Tonnes Grade Stage Deposit Type
Barro Alto Anglo Am. 116Mt 1.50% Prod. FeNi
Jacare Anglo Am. 290Mt 1.30% Feas. FeNi
Niquelandia Votorantim 60Mt 1.40% Dev. FeNi
Onca Puma Vale 83Mt 1.70% Dev. FeNi
Serra de Tapa Xstrata 123Mt 1.30% Feas. FeNi
Santa Fe/Ipora Teck 140Mt 1.10% Scoping HPAL
Vermelho Vale 124Mt 1.20% Feas. HPAL
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6.2 Project History
The following sub‐sections summarise the history of exploration for the relevant project areas.
Details of exploration work pertaining to the development and input to mineral estimations
undertaken as part of this study are described in section 10.
6.2.1 Teck Araguaia Licences
Modern day nickel exploration across the Teck Araguaia licence areas dates back to the 1970’s.
During the period work conducted by CVRD (Docegeo) and Vale led to the discovery of a small
ultramafic intrusive hosted Ni laterite deposit at Serra do Quatipuru (DNPM 850514/2004) (Figure
2).
In the 1990’s Rio Tinto Desenvolvimento Mineral (RTDM) conducted exploration for magmatic nickel
mineralisation associated to ultramafic rocks in the region of Couto Magalhaes (DNPM
850514/2004). Results of this work are unknown.
From 2000 onwards major companies such as CVRD/VALE, Xstrata (Falconbridge) and Teck Cominco
implemented large exploration investments in the Araguaia Belt. This work resulted in the first
discovery of lateritic nickel in 2004 by Falconbridge at its Serra do Tapa project (DNPM 850514/2004;
Figure 2).
This discovery by Falconbridge highlighted the Araguaia Belt as a new prospective grass roots terrain
for nickel laterite in Brazil. Falconbridge was later taken over by Xstrata in 2006, who continued to
explore within the belt and develop the resource at Serra do Tapa to its current size of 80 million
tonnes, grading 1.6% nickel at a cut off of 1.2% nickel (DNPM 850514/2004).
The Teck exploration licences were claimed over mafic/ultramafic bodies mapped in the regional geologic maps (Owen et al, 2010). Teck explored the Araguaia project between 2006 and November 2008 taking the project to
advanced exploration status having completed over 11,400m of drilling in 489 diamond core holes.
During the 3 years managing work within the project Teck completed 5 main stages of exploration
(DNPM 850514/2004):
Geological prospecting and stream sediment sampling
Airborne geophysical surveys
Soil sampling
Reverse circulation drilling
Diamond drilling
Initial stream sediment survey work identified six +300ppm Ni targets at areas known as Oito, Poco,
Jacutinga, Lajeiro, Pequizeiro and Baião. Subsequent airborne geophysics, mapping and soil
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sampling across the permit areas focused the exploration programme on five key zones referred to
as the Baião, Pequizeiro, Jacutinga, Vila Oito and Oito areas (Figures 10 to 13).
In contrast to the Lontra targets that are long and narrow with a clear N‐S orientation, the Teck
targets, except for Pequizeiro, tend to be large equant shaped bodies. In the case of Pequizeiro, the
zone appears to show a strong structural control and has a NW trend and consists of several narrow
NW orientated bodies. Given the large size and generally equant shape of the soil targets, Teck
opted to test the targets using a 200m x 200m spaced diamond drill programme.
Figure 10: Araguaia Teck Soil Geochemistry – South Sector
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Figure 11: Araguaia Teck Soil Geochemistry – Pequizeiro Sector
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Figure 12: Araguaia Teck Soil Geochemistry – Central Sector
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Figure 13: Araguaia Teck Soil Geochemistry – North Sector
The 5 stages of exploration work resulted in the development of significant targets at Pequizeiro,
Baião, Vila Oito, Vila Oito East and Oito and secondary targets at Pequizeiro W, NW and E and
Jacutinga (Figure 14).
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In August 2010, Horizonte Minerals Plc took over control of the Araguaia nickel project from Teck.
Figure 14: Teck Araguaia Target Map
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6.2.2 Horizonte Minerals Lontra Project The following section is modified from Owen et al, 2010.
The Lontra exploration area had previously been claimed for phosphate and then iron ore
exploration, although to our knowledge no exploration was undertaken. While ultramafic bodies are
known in the Araguaia Belt the regional geologic maps indicate that the Lontra area was underlain
by packages of fine to coarse‐grained clastic sediments.
The Lontra nickel prospects represent new discoveries of deeply weathered ultramafic bodies with laterite development containing potentially economic nickel mineralisation. The Lontra deposits were discovered by Horizonte Minerals as a result of a well designed and managed sequential exploration programme, progressing through the stages of:
Stream sediment sampling and soil sampling
Ground magnetometry,
Auger drilling
Diamond core drilling. Soil geochemical data for the Lontra permits are shown in Figure 15. Through this work three principal areas of ophiolite emplacement with associated laterite development have been established, namely:
Northern target;
Raimundo; and
Southern and Morro target. Targets are shown in Figure 16 and brief descriptions of the three main targets discovered and developed by Horizonte Minerals are given below (taken from Owen et al, 2010): Northern Anomaly: The northern zone is a 3km by 1.5km area containing four anomalies, of which the main target is a 1,600m by 250m soil geochemical anomaly. The soil anomaly is over undulating terrain with dark red soils and termite mounds and is truncated to the northeast by wide flat residual lateritic plateaus. To date, 31 diamond drill holes have been completed which indicate the continuity of mineralisation along the main anomaly and the potential for mineralisation beneath the adjacent soil targets; Raimundo Anomaly: 2km to the south of the Northern anomaly the Raimundo anomaly has a core zone of 1,600m by 1,000m which has been the focus of diamond drilling. To date, 31 holes have been drilled that again indicate significant thicknesses of lateritic nickel mineralisation. As with the Northern anomaly, the average thickness of mineralisation varies from 11m to 6m depending on the minimum grade cut‐off; and Southern and Morro Anomaly: This zone gave some of the best results in a shallow auger programme despite the fact that many of the holes had to be abandoned before reaching the target depth due to the presence of silcrete or saprolite. Only one diamond hole has tested the Southern target to date. By August of 2010 no attempt has been made to close off the mineralised bodies at this stage.
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Figure 15: Horizonte Minerals Lontra Licences Soil Geochemistry and target map
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6.2.3 Horizonte Minerals Araguaia Nickel Project (Combined Teck Araguaia and HM Lontra licences)
In a transaction that took place in August 2010, Horizonte minerals took control of the Teck Araguaia licences to form a combined project merging the Teck and HM Lontra projects. Subsequent to the acquisition of the Teck Araguaia permits and combined project review by
Horizonte Minerals, 15 targets are identified within the new Araguaia Nickel Project (Figure 16).
Pequizeiro Sector
o Pequizeiro Main
o Pequizeiro North West
o Pequizeiro West
o Pequizeiro East
Baião Sector
o Baião Main
o Baião North
o Baião South
Centre Sector
o Vila Oito Main
o Vila Oito East
o Jacutinga
North Sector
o Oito Main
o Oito West
Lontra Sector
o Northern Target
o Raimundo Target
o Southern and Morro Target
Figure 16 presents exploration and resource targets for the combined HM Araguaia land holding.
Since acquisition of the Teck landholding Horizonte Minerals has advanced development of the
project with the initiation of an 8000m diamond drilling programme commencing in October 2010.
The programme, designed in two phases, will reduce the drill spacing on the Pequizeiro W,
Pequizeiro and Baião targets to 141m x 141m and then on the Pequizeiro and Baião targets to 100m
x 100m. To date 91 holes (2,433.6m) have been completed for which assay data has been received
on the Pequizeiro West and Pequizeiro targets.
This report presents resource estimations for 8 targets within the former Teck project area. The
targets are arranged along an approximate north‐south trend that extends for 27km. The largest
target, Baião, covers an area of approximately 8km2 and has a small satellite zone of mineralisation
of 1km2 in extent. Villa Oito, Oito and Pequizeiro targets cover areas between 4 and 6km2, they also
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have some 1km2 satellites. Other targets are comprised of 1‐2km2 mineralised zones or collections of
zones of this size.
Figure 16: Horizonte Minerals Araguaia Niquel Combined Target Map
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7 Geological Setting
7.1 Regional geology
The project lies within the Neo Proterozoic Araguaia Fold Belt. This belt is a large north to south
trending orogenic zone along the contact of the Amazon Craton to the west and the San Francisco
Craton to the east (Figure 17). The Belt is 1000km long and 150km wide, its evolution is believed to
be contemporary with the Brazilian thermal event at the Neo Proterozoic boundary.
Continental sediments of Palaeozoic Parnaiba Basin overlie the eastern edge of the belt; it appears
that the western half of the belt has been thrust over the eastern edge of the Amazon craton. To the
north the belt disappears under Amazonas Basin sediments while to the south Paraná Basin
sediments overly the belt. Structurally the belt is dominated by westward verging folds and thrusts
aligned along a more north to south orientation.
The belt is comprised of metamorphosed and deformed marine‐clastic sediments of the Tocantins
Group and can be split into two halves based on the degree of metamorphism present. The more
highly metamorphosed Estrondo Formation comprises the eastern half of the belt while the western
half displaying lower levels of metamorphism is termed the Couto Magalhães Formation.
The Estrondo Fm is dominated by greenschist to amphibolites facies grade metamorphosed
sediments with occasional banded iron formations, carbonates and exposures of Achaean basement.
Proterozoic granites intrude the eastern belt.
The Couto Magalhães Fm contains weakly metamorphosed, marine pelites with local carbonate,
iron‐rich, and mafic to ultramafic bodies. The mafic/ultramafic complexes are made up of elongate
bodies varying in length from hundreds of metres to tens of kilometres and can extend to a
kilometre in width. They occur in thrusts within the sediment and appear to represent the tectonic
remnants of ophiolite. They are dominated by serpentinised and metamorphosed peridotites,
dunites and pillow basalts with minor basalts, gabbros and pyroxenites (Bennell, 2010).
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Figure 17: Regional Geological Setting
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7.2 Project Geology
The local geology has largely been interpreted from airborne geophysical survey data, soil sampling
data and mapping. Various types of metasedimentary cover the vast majority of the licence area.
Large areas of mafic and ultramafic plateau, varying in size from a few hundred square metres to
several square kilometres, have been identified from magnetic data and outcrop. These are
generally capped with a hard iron rich duricrust that is occasionally silicified and are often bounded
by a siliceous breccia. Bodies of pillow lava and other volcanic material also exist. The area is cut by
numerous mafic dykes.
Magnetic surveying also revealed the presence of numerous NW‐SE to N‐S trending lineaments that
are believed to be traces of fault zones. The faults are interpreted as either thrust fronts with an east
to west transport direction or later sub‐vertical faults.
Within the former Teck licences a distinctive lateritic sequence is developed over ultramafic and
mafic rocks within the project area, the same sequence can be recognised at each of the target sites
though the thickness and extent of each facies and the complete sequence itself may vary from
location to location. The sequence can be split into 6 main facies types: soil, ferricrete, limonite,
transition, saprolite and fresh rock as well as numerous sub‐facies.
Within the Lontra area soil, ferricrete and limonite facies are developed. The transition zone is
thinner and contains less distinctive sub facies; limonitic transitions dominate. Saprolite zones are
also not as well developed, a serpentinised sub facies with a distinctive “leopard spot” texture is also
apparent. Sulphides are ubiquitous throughout the profile. Most facies are highly magnetic.
The interpreted project geology is shown in Figures 18 and 19 below.
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Figure 18: Teck Licences Geology Map
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Figure 19: HM Lontra Licences Geology Map
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8 Deposit Type
The nickel deposits of the Araguaia and Lontra Projects are typical examples of Ni‐laterites formed in
a seasonally wet tropical climate on weathered and partially serpentinised peridotite. The nickel in
such deposits is derived from altered olivine, pyroxene and serpentine that constitute the bulk of
tectonically emplaced ultramafic oceanic crust and upper mantle rocks.
Due to its location in a tropical environment these laterite deposits are termed ‘wet’ laterite as
opposed to laterites and palaeo‐laterites found in arid and temperate climates today. The ‘wet’
laterites often show particularly good properties for hydrometallurgical processing.
Laterisation of these serpentinised peridotite bodies occurred during the Tertiary period and the
residual products have been preserved as laterite profiles over plateaus/amphitheatres, elevated
terraces and ridges/spurs.
The process has started with hydration, oxidation, and hydrolysis of minerals in the oxidation zone,
where there was intense circulation of meteoric water (pH been neutral to acid and Eh been neutral
to oxidant). Silicates are in part solubilized, and the soluble substances are carried over to out of the
system, causing the surface lowering. The insoluble substances remain and pass to residually
concentrate. The continuation of this process generates the residual deposits, inside the oxidation
zone, after a long activity time.
The residual concentration process develops when the rock weathering causes leaching of several
substances that compose it and the preservation of other. Non leached substances, which remain in
the weathered rock, have their contents increased, because they concentrate as leaching wastes,
characterizing the residual concentration, which can form deposits with Ni and Co concentration
from ultramafic rocks. Besides, is also common the supergenic concentration, which consists of
nickel leaching out of limonite zone and enriched in the underlying saprolite zones.
Chemical weathering is more active in hot and humid regions, where the action with rain with CO2
and the formation of organic acids by plants and animals represent an effective contribution to rock
attack. The main reactions would be hydration by action of water, oxidation, reactions with carbonic
acid and with other acids, like sulfates, resulting from sulphide decomposition. Therefore, the
formation of lateritic soil is common in regions of tropical and subtropical climates. It consists of a
mixture of iron and aluminum oxides and hydroxides, some silica, manganese oxide and other
impurities, remaining from a process that promotes dissolution and carry over of silica and other
oxides and metal redistribution in the change profile, depending on the formation of insoluble
phases, presence of organic material and co‐precipitation with Fe, Al, and Mn oxides and hydroxides.
The metallurgical process for nickel extraction in the weathering profile varies according to its
chemical composition.
A typical laterite profile contains three distinct horizons (limonite, transition and saprolite). A
schematic tropical laterite profile is shown in Figure 20.
The authors confirm that the geological model described above is adequately addressed to form the
basis on which further investigations and an exploration program can be planned.
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Figure 20: Schematic tropical laterite profile (M. Elias, 2001)
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9 Mineralization
9.1 Teck Licences Targets
9.1.1 Physical Criteria
There follows detailed descriptions of the mineralisation within the targets originally identified and
drilled by Teck. These represent that targets for which a resource estimate is presented in this
report.
The facies of the laterite profile are described macroscopically as follows (also summarized in Tables
6 and 7):
Soil Horizon
A dark brown layer rich in humus material constitutes the uppermost soil layer. This layer comprises
occasional ironstones as well as organic material derived from the breakdown of plants and the
networks of fine plant roots. The chemical composition of this layer is characterized by low Ni and
MgO. The soil material forms a thin horizon of generally less than 1 m thickness and is absent in
many places.
Ferricrete Horizon
This facies comprises a hard, cohesive, red to yellow brown material, high in hematite/goethite and
often containing magnetite with occasional chromite. Ferricrete is present as both an
unconsolidated horizon with ubiquitous haematitic pisolites and a cemented goethite rich horizon
containing distinctive worm burrows. Ferricrete is present in virtually all locations with thickness
varying from one to ten metres; commonly two to three metre thick horizons are developed.
Limonite Horizon
The limonite layer follows immediately below the soil or the ferricrete layer, and consists of deeply
weathered material. The upper part of the limonite, sometimes called Red Limonite, is a red‐brown
or more often, chocolate‐brown clayey material with little internal structure although layering has
been observed. The material consists entirely of fine‐grained minerals of silt to clay fractions,
predominantly hydrated iron oxides.
The lower part of the limonite, sometimes called Yellow Limonite, is yellow‐brown to orange
coloured and generally has a more compact appearance than the red limonite. The yellow limonite
rarely contains coarse fragments of weathered material.
Both red and yellow limonite maybe well developed; alternatively only one sub‐type may be present
or occasionally neither.
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Transitional Horizon
Upper Transition (UT)
Upper Transition facies (UT) is a dark red to brown red, cohesive, soft, plastic, and fictile material,
with fine granulation. It is differentiated from red limonite by the presence of manganese oxide (up
to 2%), whitish gibbsite pockets (up to 5%), and incipient texture. Furthermore, UT can contain up to
15% of disseminated green serpentine, which increases the nickel content in this horizon. The
presence of manganese oxide also considerably increases the cobalt and nickel content.
Green Transition (GT)
This facies is characterized by the association of green material and brown clayish material. The
green material represents from 30 to 70% of the GT facies and the clayish material occurs as
laminations or disseminated. The nickel content is associated to the relative presence of these
materials and, usually, the greener the material the higher the content. GT is usually compact and
plastic. It can also occur in a friable form, but without losing its plastic property.
The clayish material is usually brown, but it can be orange/brown or reddish brown, depending on
the amount of associated goethite and/or hematite. Chlorite, vermiculite, manganese oxide
(asbolane), and talc can also occur disseminated (> 1%). Free silica can be present in the form of
millimetre sized veins or pockets.
Brown Transition (BT)
BT is the most common transition facies and is formed by granules of millimetre or centimetre size
of green to light green serpentine immersed in a brown to reddish brown clayey matrix.
The material is compact and granular and presents incipient texture. The clayey matrix can represent
up to 30% of material and can also occur as laminations. The serpentine granules can form cohesive
aggregates, but the hardness is usually low. Manganese oxide and chlorite can sometimes occur.
Saprolite Horizon
Rocky saprolite (SAP)
Hard saprolite is described as competent dark green to greyish rock of weathered peridotite and
with moderate saprolite alteration, occurring mostly along fractures. Primary olivine and
orthopyroxene exhibit patchy replacement by fine‐grained hydrated iron oxides and amorphous
silica. Granular textures are well preserved and the material consists of cores of angular fresh rock
(20–50%) with successive rims of more and more strongly altered material. Silica boxwork is rarely
seen in the hard saprolite but a bright green garnierite staining can often be seen on fracture planes.
Silicified Saprolite (SIS)
Silicified Saprolite (SIS) is a saprolitic material visually high in silica. The hardness and colour of the
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material vary according to the silicification intensity, but the material usually presents moderate to
high hardness and whitish brown to reddish brown colour. Sometimes, the texture is still preserved
and the presence of free silica is common.
Bedrock
Bedrock has a dark green to dark brown colour and consists of massive to fractured, varyingly
serpentinised peridotite, whose interface with the weathered profile can be highly irregular with
numerous peaks and troughs. Bedrock is commonly exposed along rivers and creeks and in major
landslides.
Table 6: Geological facies descriptions and codes applied to Teck Licences
ARAGUAIA NICKEL PROJECT LITH CODES
Main Facies Main F‐code Sub Facies Sub‐F code
Soil SOI Red Soil RSOI
Ferricrete FRC Pisolite PF
Limonitic FRC LF
Limonite LIM Red Limonite RLIM
Yellow Limonite YLIM
Transition TRANS
Upper Transition UT
Green Transition GRT
Brown Transition BT
Silicate Green Transition sGT
Saprolite SAP
Saprolite SAP
Saprolite Rock SROC
Silicified Saprolite SIS
Fresh Rock FROCK
Weathered Serpentnite wSER
Serpentinite SER
Weathered Rock WROC
Harzburgite HZB
Gabbro GAB
Dunite DUN
Ultramafic Breccia uBREC
Sediment SED Sediment SED
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Table 7: Geological description of laterite and bedrock facies
Description
Limonitic Facies
Ferricrete
Horizon rich in goethite. Red to wine‐red to chocolate‐brown solid
mass to disaggregated pisolites.
Red Limonite
Horizon rich in goethite. The horizon is usually dark‐brown showing no
visible structure or banding (texturally amorphous). The horizon can be
loose or compact (cohesive) and may be plastic (malleable).
Yellow Limonite
Horizon rich in goethite and lesser amount of hematite. The horizon is
usually yellow‐orange, sometimes ochre and orange or spotted (dark‐
brown with ochre spots). The horizon can be loose or compact
(cohesive) and may be plastic (malleable). Rare fragments with relict
granular texture. Sub‐horizontal lamination is generally observed. Mn‐
oxyhydroxides present as disseminated, irregular particles up to 0.5
mm in size.
Transitional Facies
Altered harzburgite showing few relic of initial texture, mostly former
pyroxene in a greenish to beige/reddish material that may content
garnierite. The altered material is intermixed with sub‐horizontal
barren brown homogeneous clay layers. These clay layers vary from
less than 5% to more than 60% of the facies.
Saprolitic Facies
Rocky Saprolite
A serpentinized harzburgite (some dunite?) with moderate to extensive
saprolitic alteration. Primary olivine has been replaced by serpentine,
saprolitic chlorite/vermiculite/ nontronite/amorphous silicates and Fe
oxyhydroxides. Patches of fresh orthopyroxene and olivine can be
present. Fractures are filled with Fe oxyhydroxides, talc and/or
amorphous compound.
Silicifed Sap
As above but with increase of visible fine grained silica material, giving
a slight pinkish colour. Facies generally located below an silica cap
Bedrock Bed rock can be of various nature, Harzburgite, Dunite, Pyroxenite and
occasionally Gabbro, Sediments or other rock types in barren areas.
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9.1.2 Chemical Criteria
A facies distinction by chemical composition has been devised by Consulting Geologist Marc‐Antoine
Audet, P.Geo, Ph.D. based on factor analysis of the assay data. The discrimination is made using
mainly Fe, MgO, SiO2, Al2O3; Ni is also applied (Table 8).
Typical limonite‐facies laterite at the Araguaia project contains 0.76% Ni, 0.107% Co, 2.26% Cr2O3,
less than 2% MgO, 34.5% Fe and 23.59% SiO2.
The underlying saprolite material typically has 0.95% Ni, 0.028% Co, 34.51% MgO and 6.14% Fe.
Table 8: Average composition per facies based on the Teck Diamond Drilling
Facies Nb Ni% Co% Fe% MgO% SiO2% Al2O3% Cr2O3% Weathered Peridotite
Soil
1,386 0.13 0.032 29.20 0.15 25.33 17.77 1.61
Ferricrete
81 0.31 0.080 48.17 0.22 9.16 9.20 2.10
Limonite
2,313 0.76 0.107 34.50 1.90 23.59 10.69 2.26
Transition
1,810 1.09 0.043 16.47 13.45 46.17 4.73 1.11
Saprolite
2,221 0.95 0.028 10.48 25.52 42.71 4.05 0.73
Silicified Saprolite
83 0.43 0.027 8.95 6.09 72.53 2.76 0.49
Bedrock
1,482 0.31 0.014 6.14 34.51 41.50 1.62 0.45 Other Protore
Sediment
2,826 0.04 0.013 8.82 1.57 59.16 15.38 0.15
Qtz vein
86 0.05 0.011 2.50 0.95 93.55 0.55 0.13
Cao Rich
44 0.08 0.011 4.16 17.59 19.31 1.14 0.23
DIKE AL
306 0.14 0.012 5.45 3.59 60.52 15.65 0.07
Diorite
585 0.18 0.014 11.14 4.58 49.15 17.01 0.22
The chemical criteria for assigning geofacies to samples are given in Table 9.
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Table 9: Chemical criteria for assigning Geofacies to samples
Basic Parameters Exceptions
Facies Code Rock‐code Fe MgO SiO2 Al2O3 Ni Fe/MgO
Soil RSOI, YSOI 55 15<Fe<55 MgO=<0.2 Ni<0.35Ferricrete PF, LF 70 Fe>=45 MgO > 0.1 Ni<0.5 if Al2O3>=9 and Fe>=45 and Fe/MgO>2 Ferricrete
Limonite if 15=<Fe<25 and 5=<MgO<10 and
Fe/MgO>3
Limonite
Red limonite RLIM 100 25=<Fe<45 MgO<10 Ni>0.3 if 15=<Fe<30 and MgO<5 and and SiO2
>50 and Fe/MgO>2
Limonite
Yellow Limonite YLIM 100 25=<Fe<45 MgO<10 Ni>0.3 if Al2O3>=9 and 20=<Fe<45 and
Fe/MgO>2
Limonite
if Fe>25 and Fe/MgO>2 Limonite
Transition
Upper Transition UT 200 15=<Fe<40 5=<MgO<40 if 25=<Fe<40 and MgO>=10 Transition
Green Transition GRT 200 15=<Fe<40 5=<MgO<40 if 8=<Fe<15 and SiO2>=50 and Fe/MgO<=2 Transition
Brown Transition BT 200 15=<Fe<40 5=<MgO<40 if Al2O3>=9 and 8=<Fe<30 and Fe/MgO>2 Transition
Gray Transition GYT 200 15=<Fe<40 5=<MgO<40 if Fe<8 and MgO<20 and 50<SiO2 >= 60 Transition
Rocky Saprolite
Saprolite SAP 300 not coded
Rocky Saprolite SROC 330 5=<Fe<15 15=<MgO<40
Silicified Saprolite SIS 350 Fe<8 MgO<20 SiO2=<60 Ni>0.5
Bedrock
Harzbugite 500 Fe<8 MgO>=25 30<SiO2<50
Dunite 500 Fe<8 MgO>=25 30<SiO2<50
Others
Sediment 600 Fe<15 MgO<3 Al2O3>=7Ni<0.09 if Al2O3>=9 and 8<Fe>=45 and Ni<0.03
and Fe/MgO>2
Sediment
Diorite
800 Al2O3>=9Ni<0.35 if Fe<8 and MgO<20 and SiO2 >= 60 and
Ni<0.03
Sediment
Cao rich 850 Cao >20 If Al2O3 >= 9 and Fe > 8 and Fe/MgO <=2 Diorite
Dike Al 870 Fe<20 MgO<5 Al2O3>12 <= 2
Qtz vein 900 Sio2>90
Other 950
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All geological samples from the Teck diamond drill holes are plotted in a triangular diagram (Fe, MgO
and SiO2) in Figure 21 with symbols according to their ‘Geofacies’ classification.
It implies that the chemical change in terms of these three major elements, from bedrock to
saprolite and further to Transition, is primarily an increase in Fe and simultaneous decrease in MgO
along with a moderate decrease in SiO2. The continued chemical change from Transition to Limonite
and from bottom to top of the limonite horizon is primarily a further increase in the Fe and a sharp
decrease in MgO.
Figure 21: Ternary plot of all drill‐core samples using the ‘Geofacies’ classification, Fe, MgO, SiO2 (n=9,376)
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9.1.3 Facies Distribution
The deposits at the Araguaia project are heterogeneous as far as lateritic facies distribution is
concerned (Table 10). The average thickness for the limonite facies range from 6.97m to 11.56m,
while the maximum thickness is less variable, ranging from 24m to 32m. The Saprolite horizon shows
similar average variations while the total thickness is highly variable.
Table 10: Average thickness of laterite horizons at the Araguaia Project
Sector Area Drill hole limonite (m) Transition (m) Saprolite (m)
nb max ave max ave max ave
South Baião 121 23.90 6.97 16.94 4.70 19.25 6.35
Baião South
Pequizeiro Pequizeiro 119 28.94 9.57 22.60 5.64 24.50 7.72
Pequizeiro East
Pequizeiro West
Pequizeiro NW
Center Vila Oito East 161 32.10 9.43 59.15 5.78 59.05 11.28
Vila Oito
Vila Oito West
Jacutinga
North Oito 58 31.30 11.56 25.20 6.25 37.86 9.87
Oito West
Figures 22 to 25 show the thickness distribution for each facies; limonite, transition and saprolite,
for each of the sectors.
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Figure 22: North Sector: Thickness distribution of limonite (top left), transition (top right), saprolite (lower left) and all facies (lower right)
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Figure 23: Centre sector: Thickness distribution of limonite (top left), transition (top right), saprolite (lower left) and all facies (lower right)
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Figure 24: Peguizeiro sector: Thickness distribution of limonite (top left), transition (top right), saprolite (lower left) and all facies (lower right)
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Figure 25: South sector: Thickness distribution of limonite (top left), transition (top right), saprolite (lower left) and all facies (lower right)
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9.1.4 Average Mineralized Profiles The percent of boreholes with mineralized intervals at various cut‐off grade of nickel are presented
in Table 11. The average thicknesses of mineralized intercepts calculated at 1.0% nickel cut‐off‐
grade for the four main sectors range from 5.12m to 7.55m, with maximum thicknesses varying from
13.08m to 21.30m. Tables 12 to 15 show the mineralised intercepts per borehole estimated using
1.0%Ni cut‐of‐grade for mineralised intercepts ≥2m thick with a maximum of 2.0m of internal
dilution. Figures 26 to 28 suggest that the lateral continuity for the mineralized material is high to
very high in all areas.
Table 11: Thickness of mineralised profiles at various Ni cut‐off grades
Ni cut‐off Sector Drill‐holes Thickness (m)
% Total Intersections % Mean Max.
0.5 North 61 46 75% 12.15 25.76
Centre 119 75 63% 33.20 13.47
Pequizeiro 118 82 69% 11.67 36.88
South 122 98 80% 9.77 26.50
Global 420 301 72% 11.57
0.7 North 61 44 72% 9.10 17.71
Centre 119 72 61% 10.81 25.40
Pequizeiro 118 76 64% 9.63 24.50
South 122 94 77% 7.63 22.48
Global 420 286 68% 8.77
1.0 North 61 41 67% 5.17 13.08
Centre 119 65 55% 7.55 19.18
Pequizeiro 118 70 59% 7.04 21.30
South 122 80 66% 5.12 14.75
Global 420 256 61% 6.27
1.2 North 61 33 54% 3.73 10.67
Center 119 57 48% 5.90 16.28
Pequizeiro 118 57 48% 6.34 18.74
South 122 66 54% 4.05 12.00
Global 420 213 51% 5.10
1.5 North 61 20 33% 3.83 11.27
Centre 119 39 33% 2.47 8.26
Pequizeiro 118 42 36% 4.82 15.28
South 122 41 34% 3.51 9.82
Global 420 142 34% 3.83
2.0 North 61 6 10% 1.75 3.00
Centre 119 15 13% 2.47 7.43
Pequizeiro 118 22 19% 3.58 10.00
South 122 25 20% 2.04 6.12
Global 420 68 16% 2.62
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Table 12: Sector North: Mineralised intercepts at a 1.0% Ni cut‐off grade
HOLE‐ID Length (m) Density Ni% Co% Fe% MgO% SiO2% Al2O3%
North
PCA‐DD‐0076 5.30 1.36 1.20 0.11 28.69 9.72 29.64 6.52
PCA‐DD‐0078 4.50 1.33 1.43 0.04 21.13 12.47 32.32 10.34
PCA‐DD‐0079 4.35 1.42 1.15 0.03 13.99 22.37 40.19 2.92
PCA‐DD‐0080 3.58 1.33 1.12 0.03 15.51 6.79 53.79 7.63
PCA‐DD‐0081 3.40 1.33 1.37 0.08 32.02 7.38 25.56 7.43
PCA‐DD‐0083 2.90 1.49 1.03 0.03 12.15 24.68 40.08 2.82
PCA‐DD‐0084 3.47 1.33 1.15 0.05 22.83 5.12 40.35 5.78
PCA‐DD‐0085 13.08 1.39 1.37 0.05 17.80 15.11 41.59 4.81
PCA‐DD‐0086 9.50 1.38 1.27 0.07 20.98 15.77 35.19 5.51
PCA‐DD‐0088 11.13 1.37 1.25 0.07 21.73 16.16 32.64 5.84
PCA‐DD‐0358 3.84 1.33 1.14 0.09 35.09 2.05 17.17 14.41
PCA‐DD‐0362 2.34 1.49 1.19 0.03 12.69 22.26 39.13 4.61
PCA‐DD‐0363 2.00 1.33 1.03 0.10 46.83 1.02 10.54 8.41
PCA‐DD‐0364 9.13 1.33 1.21 0.10 36.93 3.92 15.25 12.69
PCA‐DD‐0365 3.30 1.36 1.34 0.07 26.31 11.79 28.56 7.68
PCA‐DD‐0366 7.10 1.37 1.19 0.08 23.44 20.01 27.77 5.23
PCA‐DD‐0367A 13.00 1.33 1.18 0.16 43.11 1.88 13.10 9.18
PCA‐DD‐0368 2.69 1.33 1.17 0.12 42.84 3.13 12.97 9.33
PCA‐DD‐0370 8.36 1.35 1.22 0.09 29.61 14.26 22.65 6.80
PCA‐DD‐0391A 2.74 1.46 2.52 0.02 11.85 9.62 45.07 13.61
PCA‐DD‐0392 4.06 1.33 1.13 0.12 36.29 8.34 19.01 6.89
PCA‐DD‐0394 7.30 1.38 1.15 0.03 10.66 20.09 51.27 3.86
PCA‐DD‐0395 13.70 1.36 1.47 0.04 15.83 11.00 48.84 4.55
PCA‐DD‐0396 3.13 1.45 1.35 0.04 11.97 26.41 38.33 4.20
PCA‐DD‐0398 8.11 1.38 1.80 0.04 17.91 12.32 42.90 6.50
PCA‐DD‐0400 5.13 1.38 1.65 0.07 12.74 15.30 50.91 4.49
PCA‐DD‐0401 6.28 1.41 1.15 0.04 26.33 15.01 27.16 6.48
PCA‐DD‐0403 4.72 1.33 1.33 0.18 41.27 1.41 11.46 10.88
PCA‐DD‐0405 4.19 1.33 1.22 0.06 25.53 13.56 27.69 5.76
PCA‐DD‐0407 8.31 1.33 1.57 0.08 20.86 5.89 41.67 5.96
PCA‐DD‐0435 9.69 1.39 1.19 0.03 17.34 16.33 40.92 4.67
PCA‐DD‐0437 12.67 1.38 1.75 0.05 17.74 14.91 41.59 4.30
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Table 13: Sector Centre: Mineralised intersects at a 1.0% Ni cut‐off grade
HOLE‐ID Length (m) Density Ni% Co% Fe% MgO% SiO2% Al2O3%
Centre
PCA‐DD‐0057 9.90 1.41 2.33 0.08 18.30 19.64 35.94 2.44
PCA‐DD‐0093 17.28 1.44 1.17 0.04 14.35 28.18 35.04 3.26
PCA‐DD‐0094 19.50 1.47 1.33 0.03 11.12 26.70 40.83 2.79
PCA‐DD‐0096 5.94 1.41 1.17 0.05 21.26 14.32 38.38 3.87
PCA‐DD‐0097 4.88 1.35 1.28 0.06 24.81 11.28 38.04 2.64
PCA‐DD‐0098 2.66 1.49 1.49 0.02 9.09 22.43 46.10 7.89
PCA‐DD‐0102 4.98 1.36 1.10 0.04 15.20 19.37 42.19 4.24
PCA‐DD‐0103 2.95 1.33 1.00 0.04 18.74 18.23 37.44 3.46
PCA‐DD‐0104 14.97 1.34 1.38 0.05 14.70 6.96 50.70 6.89
PCA‐DD‐0105 9.30 1.44 1.33 0.05 16.05 24.95 36.32 2.99
PCA‐DD‐0108 9.45 1.39 1.34 0.05 16.31 13.48 49.77 2.06
PCA‐DD‐0122 3.00 1.33 1.18 0.06 24.87 16.17 29.83 5.02
PCA‐DD‐0129A 11.03 1.43 1.60 0.04 12.04 20.16 45.74 3.83
PCA‐DD‐0242 12.50 1.41 1.52 0.05 14.78 23.00 40.70 1.91
PCA‐DD‐0244 12.50 1.41 1.27 0.04 15.27 9.99 50.46 5.59
PCA‐DD‐0246 7.60 1.55 1.06 0.03 10.53 21.79 46.89 3.73
PCA‐DD‐0247 14.62 1.38 1.40 0.06 19.87 12.09 44.44 2.80
PCA‐DD‐0248 2.40 1.45 1.15 0.02 8.78 20.82 46.69 7.62
PCA‐DD‐0251 6.00 1.40 1.04 0.07 16.00 18.80 41.66 3.45
PCA‐DD‐0254 7.45 1.39 1.48 0.06 16.48 20.09 39.24 2.98
PCA‐DD‐0255A 12.50 1.37 1.29 0.04 18.71 18.92 38.25 3.23
PCA‐DD‐0256 7.33 1.33 2.11 0.35 26.58 4.11 38.80 4.73
PCA‐DD‐0258 8.00 1.43 1.21 0.04 16.09 24.11 36.38 3.65
PCA‐DD‐0259 12.30 1.42 1.27 0.03 11.07 21.84 48.48 3.24
PCA‐DD‐0260 12.33 1.44 2.20 0.03 14.72 19.99 43.58 3.30
PCA‐DD‐0261 6.30 1.37 1.34 0.06 22.19 16.04 34.49 4.51
PCA‐DD‐0264A 5.00 1.33 1.10 0.04 19.91 5.59 45.73 8.81
PCA‐DD‐0266 2.50 1.40 1.37 0.12 24.48 16.53 30.56 4.64
PCA‐DD‐0268 5.60 1.38 1.53 0.05 16.96 19.50 39.13 3.31
PCA‐DD‐0270 16.55 1.45 1.35 0.04 12.85 21.59 43.62 3.10
PCA‐DD‐0271 9.18 1.45 1.37 0.04 13.75 24.87 40.67 1.84
PCA‐DD‐0272 3.89 1.41 1.21 0.04 20.62 20.28 31.18 4.38
PCA‐DD‐0273 15.29 1.45 1.38 0.04 11.26 29.45 39.52 1.74
PCA‐DD‐0276 8.60 1.41 1.18 0.06 22.12 15.23 33.57 5.54
PCA‐DD‐0279 3.20 1.44 1.58 0.17 11.84 24.48 41.10 2.79
PCA‐DD‐0280 4.00 1.49 1.15 0.03 8.41 11.29 42.00 18.54
PCA‐DD‐0331 18.60 1.27 1.22 0.08 19.18 23.81 33.08 3.12
PCA‐DD‐0332 11.22 1.35 1.21 0.04 16.17 7.69 51.04 4.18
PCA‐DD‐0333 14.26 1.40 1.69 0.07 16.70 18.24 42.37 2.15
PCA‐DD‐0334 6.90 1.33 1.15 0.04 24.18 4.84 43.85 4.79
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HOLE‐ID Length (m) Density Ni% Co% Fe% MgO% SiO2% Al2O3%
Centre (cont)
PCA‐DD‐0336 14.60 1.42 1.46 0.05 13.53 21.22 42.99 2.86
PCA‐DD‐0338 2.75 1.37 1.33 0.05 15.89 19.61 41.22 3.09
PCA‐DD‐0339 6.60 1.33 1.56 0.07 22.67 5.46 49.11 2.64
PCA‐DD‐0340 5.70 1.37 1.25 0.07 21.56 13.06 33.49 8.46
PCA‐DD‐0341 7.72 1.33 1.04 0.06 23.50 4.64 42.86 5.23
PCA‐DD‐0342 6.07 1.35 1.15 0.08 26.03 9.66 36.79 3.86
PCA‐DD‐0345 3.27 1.33 1.05 0.03 18.39 6.09 51.76 3.94
PCA‐DD‐0346 3.83 1.44 1.22 0.04 15.38 23.74 37.99 2.79
PCA‐DD‐0347 16.50 1.43 1.40 0.10 13.33 12.88 50.61 5.18
PCA‐DD‐0348 4.83 1.46 1.20 0.03 13.64 23.64 40.06 3.03
PCA‐DD‐0350 5.87 1.38 1.14 0.06 21.01 11.47 34.66 8.91
PCA‐DD‐0352 9.90 1.41 1.55 0.06 19.85 13.52 37.00 5.83
PCA‐DD‐0353 6.00 1.37 1.19 0.08 23.13 12.26 34.41 5.33
PCA‐DD‐0384 9.60 1.38 1.51 0.11 28.29 14.04 26.38 5.65
PCA‐DD‐0386 20.11 1.40 1.77 0.11 20.42 18.20 34.51 3.60
PCA‐DD‐0387 10.61 1.41 1.69 0.05 21.69 18.02 35.18 2.47
PCA‐DD‐0388 4.88 1.47 1.26 0.03 11.70 28.44 38.94 2.31
PCA‐DD‐0418 7.40 1.36 1.32 0.08 16.24 9.74 46.24 4.98
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Table 14: Sector Pequizeiro: Mineralised intersects at a 1.0% Ni cut‐off grade
HOLE‐ID Length (m) Density Ni% Co% Fe% MgO% SiO2% Al2O3%
Pequizeiro
PCA‐DD‐0033 7.90 1.38 1.78 0.08 20.19 19.98 31.56 4.63
PCA‐DD‐0035 14.50 1.33 2.32 0.06 18.50 8.54 42.81 5.45
PCA‐DD‐0037 8.70 1.33 1.61 0.05 18.67 9.00 47.84 3.41
PCA‐DD‐0043 5.80 1.33 1.35 0.07 31.69 5.42 29.17 6.71
PCA‐DD‐0044 3.60 1.46 1.25 0.06 16.93 22.41 34.60 3.95
PCA‐DD‐0045 2.50 1.33 1.25 0.06 27.65 11.63 27.49 7.70
PCA‐DD‐0048 8.17 1.36 1.33 0.14 33.77 8.44 21.96 6.46
PCA‐DD‐0049 5.89 1.45 1.28 0.03 12.16 23.05 43.54 2.52
PCA‐DD‐0050 8.01 1.44 1.80 0.04 12.57 21.34 41.55 3.53
PCA‐DD‐0052 19.50 1.45 1.29 0.04 14.37 26.11 37.63 1.71
PCA‐DD‐0053 6.10 1.34 1.31 0.07 31.67 8.63 20.00 9.60
PCA‐DD‐0054 4.20 1.36 1.60 0.08 31.85 6.30 19.36 9.34
PCA‐DD‐0055 2.70 1.36 1.34 0.05 21.63 14.55 33.06 6.84
PCA‐DD‐0130 9.65 1.41 1.17 0.03 17.85 15.56 40.90 5.38
PCA‐DD‐0207 18.11 1.44 1.54 0.04 14.13 20.64 38.60 6.25
PCA‐DD‐0210 8.30 1.34 1.42 0.06 24.38 6.00 35.90 7.34
PCA‐DD‐0212 2.70 1.37 1.39 0.07 19.34 17.23 30.01 10.61
PCA‐DD‐0213 2.20 1.33 1.03 0.09 40.63 2.27 17.03 9.60
PCA‐DD‐0215 9.40 1.44 1.51 0.05 13.38 20.15 39.42 6.94
PCA‐DD‐0216 10.57 1.46 1.90 0.05 11.95 23.53 38.30 5.83
PCA‐DD‐0219 4.50 1.39 1.66 0.04 19.50 16.88 37.47 3.89
PCA‐DD‐0228 12.73 1.45 2.22 0.05 13.85 19.93 42.24 3.44
PCA‐DD‐0229 6.90 1.33 1.21 0.06 23.60 12.62 36.63 4.45
PCA‐DD‐0238 4.00 1.37 1.27 0.09 25.77 3.61 34.50 10.99
PCA‐DD‐0281 5.56 1.36 1.30 0.14 27.36 9.33 22.37 14.80
PCA‐DD‐0285 10.60 1.47 1.20 0.05 12.21 28.76 38.04 2.18
PCA‐DD‐0288 14.63 1.49 1.24 0.03 7.66 35.74 36.85 1.33
PCA‐DD‐0289 21.61 1.43 1.36 0.06 15.13 23.34 36.69 5.05
PCA‐DD‐0290 20.00 1.43 1.73 0.05 13.19 9.35 53.18 4.64
PCA‐DD‐0291 20.50 1.48 2.26 0.03 10.01 17.28 45.00 8.46
PCA‐DD‐0292 10.50 1.34 1.46 0.04 12.92 12.58 52.19 4.81
PCA‐DD‐0294 3.06 1.49 1.95 0.05 12.11 5.36 62.58 3.69
PCA‐DD‐0295 20.10 1.34 1.39 0.06 21.60 5.49 45.17 4.48
PCA‐DD‐0296 9.40 1.45 1.95 0.07 13.87 27.05 35.82 2.38
PCA‐DD‐0297 14.73 1.42 1.67 0.06 14.64 20.74 40.87 3.24
PCA‐DD‐0298 21.30 1.38 1.74 0.07 23.52 15.18 33.22 4.04
PCA‐DD‐0299 20.13 1.44 1.83 0.04 16.40 23.12 35.91 3.10
PCA‐DD‐0300 9.62 1.44 1.22 0.03 10.00 21.56 49.41 3.82
PCA‐DD‐0302 4.60 1.33 1.20 0.09 34.02 9.27 17.00 8.48
PCA‐DD‐0303 6.50 1.41 1.50 0.07 22.26 14.49 26.90 11.55
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HOLE‐ID Length (m) Density Ni% Co% Fe% MgO% SiO2% Al2O3%
Pequizeiro (cont)
PCA‐DD‐0309 6.22 1.39 1.40 0.05 17.04 17.39 30.84 12.01
PCA‐DD‐0312 9.06 1.41 2.08 0.05 17.13 17.12 40.68 3.93
PCA‐DD‐0313 3.83 1.33 1.30 0.04 16.93 8.32 52.14 3.56
PCA‐DD‐0314 9.96 1.35 1.40 0.05 22.75 9.39 37.70 4.25
PCA‐DD‐0316 15.26 1.34 1.33 0.04 20.69 6.97 43.91 4.35
PCA‐DD‐0318 2.00 1.33 1.10 0.04 11.09 12.11 56.57 3.93
PCA‐DD‐0320 9.36 1.33 1.10 0.05 18.85 6.63 48.35 5.52
PCA‐DD‐0322 7.90 1.35 2.01 0.10 17.55 10.73 45.57 4.21
PCA‐DD‐0323 2.24 1.39 1.84 0.14 10.56 17.45 48.75 1.71
PCA‐DD‐0324 3.76 1.37 1.53 0.11 18.51 9.84 45.79 3.91
PCA‐DD‐0325 4.32 1.39 1.02 0.05 15.92 18.36 34.16 9.79
PCA‐DD‐0330 4.10 1.33 1.08 0.09 40.54 3.27 15.09 8.13
PCA‐DD‐0371 3.06 1.54 1.07 0.04 18.66 19.23 31.58 6.10
PCA‐DD‐0373 2.00 1.33 1.26 0.09 33.60 8.97 19.23 7.47
PCA‐DD‐0377 5.70 1.33 1.28 0.07 29.88 7.82 25.18 7.37
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Table 15: Sector South: Mineralised intersects at a 1.0% Ni cut‐off grade
HOLE‐ID Length (m) Density Ni% Co% Fe% MgO% SiO2% Al2O3%
South
PCA‐DD‐0001 13.60 1.46 1.16 0.03 12.25 28.44 36.77 2.52
PCA‐DD‐0004 2.50 1.39 1.26 0.04 17.90 11.66 44.76 3.29
PCA‐DD‐0005 2.90 1.33 1.68 0.16 21.39 9.54 36.19 8.02
PCA‐DD‐0006 2.89 1.49 1.64 0.02 11.07 18.31 46.66 6.53
PCA‐DD‐0007 13.00 1.41 1.92 0.10 21.47 15.62 28.31 7.47
PCA‐DD‐0008A 3.33 1.33 1.97 0.12 28.85 9.18 27.16 7.77
PCA‐DD‐0011 2.28 1.33 1.77 0.05 19.14 8.78 43.38 5.96
PCA‐DD‐0012 5.70 1.33 1.63 0.11 38.02 2.39 16.46 9.38
PCA‐DD‐0013 2.00 1.33 2.10 0.06 34.79 5.95 18.60 7.70
PCA‐DD‐0014 7.70 1.42 1.18 0.03 13.72 20.28 43.07 3.35
PCA‐DD‐0015 5.99 1.36 1.18 0.04 21.72 13.30 35.52 5.23
PCA‐DD‐0016 14.21 1.44 1.26 0.04 14.59 21.99 39.26 3.91
PCA‐DD‐0019 2.45 1.33 1.19 0.07 32.85 4.49 24.43 7.60
PCA‐DD‐0020 14.25 1.42 1.81 0.10 23.81 13.63 29.68 6.50
PCA‐DD‐0023 5.90 1.36 1.07 0.04 22.25 11.45 31.70 9.55
PCA‐DD‐0024 6.24 1.49 1.58 0.02 10.50 17.97 39.61 11.06
PCA‐DD‐0026 4.05 1.33 1.42 0.02 20.33 2.92 31.65 19.30
PCA‐DD‐0028 2.90 1.33 1.06 0.09 38.72 0.51 13.72 13.93
PCA‐DD‐0040 4.17 1.33 1.22 0.06 26.25 11.42 25.90 9.23
PCA‐DD‐0135 2.03 1.33 1.04 0.06 25.15 17.87 25.86 5.81
PCA‐DD‐0144 3.87 1.33 1.53 0.14 39.44 2.27 12.66 9.51
PCA‐DD‐0145 4.20 1.33 1.10 0.11 36.85 4.20 17.66 10.17
PCA‐DD‐0147 2.93 1.33 1.84 0.08 35.94 3.98 18.16 8.98
PCA‐DD‐0149 2.31 1.33 1.13 0.07 38.66 2.99 17.70 9.70
PCA‐DD‐0150 3.73 1.33 1.11 0.06 33.01 3.43 21.97 10.27
PCA‐DD‐0151 6.45 1.35 1.70 0.10 32.31 8.22 18.86 8.40
PCA‐DD‐0152 4.50 1.36 1.74 0.07 31.12 6.75 24.92 7.60
PCA‐DD‐0153 3.61 1.33 1.15 0.09 34.92 7.41 19.22 8.63
PCA‐DD‐0154 4.83 1.49 1.18 0.02 10.23 28.59 37.16 5.64
PCA‐DD‐0156 3.07 1.33 1.25 0.07 32.08 10.20 19.25 8.17
PCA‐DD‐0158 3.45 1.33 1.31 0.10 39.23 1.50 15.64 7.86
PCA‐DD‐0159 2.32 1.36 1.02 0.11 27.45 15.11 22.49 8.54
PCA‐DD‐0160 2.20 1.33 1.17 0.04 20.15 17.17 38.93 3.74
PCA‐DD‐0161 5.63 1.40 1.48 0.12 17.42 19.27 27.95 12.68
PCA‐DD‐0162 19.16 1.35 1.15 0.11 18.04 13.50 45.26 3.76
PCA‐DD‐0167 2.80 1.33 1.12 0.06 31.35 7.68 21.83 10.08
PCA‐DD‐0168 7.19 1.36 1.59 0.07 16.69 10.78 48.47 4.02
PCA‐DD‐0171 3.40 1.33 1.14 0.09 33.75 5.04 21.38 10.02
PCA‐DD‐0172 15.50 1.41 1.36 0.06 14.48 15.70 42.61 7.33
PCA‐DD‐0173 6.00 1.41 1.26 0.03 14.81 22.70 41.10 2.97
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HOLE‐ID Length (m) Density Ni% Co% Fe% MgO% SiO2% Al2O3%
South (cont)
PCA‐DD‐0174 12.10 1.46 1.35 0.06 21.75 16.03 33.94 5.00
PCA‐DD‐0175 15.50 1.39 1.67 0.13 21.26 15.63 33.78 4.76
PCA‐DD‐0176 10.75 1.40 1.58 0.07 19.59 14.78 38.19 4.25
PCA‐DD‐0177 14.98 1.39 1.33 0.06 16.00 15.67 43.72 4.97
PCA‐DD‐0178 4.00 1.37 1.53 0.03 13.48 15.20 44.76 3.45
PCA‐DD‐0179 7.30 1.40 1.59 0.04 14.34 17.93 40.81 4.10
PCA‐DD‐0181 4.50 1.38 1.40 0.09 26.17 15.43 24.31 7.77
PCA‐DD‐0182 5.50 1.41 1.62 0.05 15.38 20.55 38.35 4.10
PCA‐DD‐0183 6.20 1.33 1.46 0.22 42.75 1.71 9.96 9.48
PCA‐DD‐0184 7.86 1.36 1.49 0.07 23.11 14.75 34.60 4.48
PCA‐DD‐0185 5.06 1.49 1.27 0.04 10.63 26.21 43.76 2.16
PCA‐DD‐0186 3.57 1.36 1.12 0.03 17.14 13.82 44.45 4.56
PCA‐DD‐0187 5.69 1.37 1.56 0.07 21.28 8.47 40.39 6.07
PCA‐DD‐0188 3.25 1.33 1.26 0.21 42.79 0.96 10.42 8.54
PCA‐DD‐0189 8.00 1.37 1.77 0.07 20.11 16.06 32.93 6.46
PCA‐DD‐0195 12.00 1.45 1.38 0.05 20.31 16.78 34.08 5.72
PCA‐DD‐0196 7.60 1.41 1.22 0.06 25.29 19.43 26.45 4.90
PCA‐DD‐0198 6.88 1.36 1.53 0.07 29.52 11.01 25.17 5.96
PCA‐DD‐0202 4.00 1.33 1.26 0.03 15.78 9.53 41.35 10.02
PCA‐DD‐0221 9.36 1.47 2.44 0.04 13.33 21.55 38.13 5.76
PCA‐DD‐0223 3.36 1.33 1.15 0.09 34.66 4.43 18.34 10.19
PCA‐DD‐0458 6.00 1.58 1.09 0.06 19.82 19.49 31.91 5.86
PCA‐DD‐0470 14.10 1.35 1.47 0.05 19.31 18.39 30.55 7.23
PCA‐DD‐0480 9.00 1.44 1.19 0.03 12.46 26.39 40.50 2.78
PCA‐DD‐0482 8.86 1.34 2.01 0.05 18.84 12.79 41.21 3.85
PCA‐DD‐0487 4.50 1.33 1.21 0.03 20.40 13.39 33.27 9.01
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Figure 26: Araguaia Project: Thickness of mineralised profiles at 1.0%Ni cut‐off grade per sectors
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Figure 27: Araguaia Project: Ni % grade of mineralised profiles at 1.0% Ni cut‐off grades per sectors
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Figure 28: Araguaia Project: Ni grade x Thickness of mineralised profiles at 1.0% Ni cut‐off grades per sectors
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10 Exploration
The following sections briefly describe the exploration undertaken by Teck and data as used for
input to mineral estimations undertaken as part of this study. Descriptions are also provided on
exploration data collected by Horizonte Minerals not yet included in mineral resource estimation for
completeness and future reporting purposes.
The exploration history is not repeated here, however data collection is presented in chronological
order where possible.
10.1 Exploration in the Teck Araguaia Licences
Teck commenced exploration on the Araguaia project in 2006. Due to the global financial crises and
resulting focus upon core assets, after a three‐year exploration programme in November 2008 Teck
ceased all works on their Araguaia project.
A summary of the data collection work completed by Teck and as used in the resource estimations
reported as part of this study are presented in Table 16 below.
Table 16: Teck’s exploration work at the Araguaia Project
Teck Summary of Exploration 2006 – 2008 (taken from HM database)
Type of Work Number Total (m) Comments
Stream sediment, soil and rock sampling 3572
Auger drill holes 46 627.9 Baião, Oito
RC drill holes 69 1,990.4
Irregularly spaced; Baião, Jacutinga, Lajeiro, Pequizeiro, Poço
Diamond drill holes 489 11,404.45
400m x 80m, 200m x 200m, 100m x 100m spacing
10.1.1 Topographic Surveys
Teck acquired 10m topographical contour data from commissioned ground surveys undertaken by
Prospectors Aerolevantamentos Esistemas Ltda.
This topographical data is used to constrain any mineralisation at the surface, and as an initial
control for planned drillhole elevations.
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10.1.2 Surface Exploration and Mapping
The following is modified from Teck DNPM report DNPM 850.514/2004.
During 2006 and 2007 Teck conducted surface exploration sampling that included in the collection of
78 stream sediment samples and 56 surface rock chip samples across the permit areas. This work
resulted in the identification of 6 stream sediment nickel anomalous target areas namely the Oito
target; the Poco target; Jacutinga target; Lajeiro target (Vila Oito West); Pequizeiro target and the
Baião target.
Following stream sediment target identification, airborne magnetic and radiometric geophysical
surveys were flown across the Araguaia permit areas, comprising of 126, 300m spaced flight lines
and 12 control lines for a total of 2374km’s.
The modelling of this high‐resolution airborne geophysical data delineated several geophysical
anomalies later tested by regular spaced soil geochemical survey. Teck collected a total of 3572 soil
samples (inc. blanks, standards and duplicates) at 400m x 50m centres over 371km of traverses.
From this work 5 nickel in soils anomalous areas were identified at the Baião target; Pequizeiro
target; Jacutinga target; Vila Oito target (Vila Oito West, Vila Oito and Vila Oito East) and Oito target
areas (Oito West and Oito).
The Analytical Signal calculated from airborne magnetic geophysical survey and soil geochemical
grids for the Araguaia project are presented in Figures 29 and 30 below.
10.1.3 Drilling
10.1.3.1 Auger Drilling
Teck completed 46 shallow auger drill holes. Locations of Teck auger drill holes are shown on Figure
30.
10.1.3.2 RC Drilling
1st pass irregular spaced exploratory reverse circulation drilling was undertaken by Teck between
September and November 2006 to test the Ni in soil geochemical and airborne magnetic and
radiometric geophysical anomalies and identified target areas.
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69 RC holes were drilled for a total of 1996 metres testing 5 target areas at Baião, Pequizeiro,
Jacutinga, Vila Oito West and Vila Oito (DNPM 850.514/2004). Positive drill results were returned for
each target tested.
The locations of Teck RC drill holes are shown on Figure 30.
10.1.3.3 Core Drilling
Following positive results from the RC drill programs, 1st phase 400m x 400m spaced diamond drilling
took place at the Baião, Pequizeiro, Jacutinga, Vila Oito West and Vila Oito targets sometime
between April and November 2007.
Where preliminary results from drill core were positive, 2nd phase 200m x 200m spaced diamond
drilling was undertaken.
In November 2008, having completed the 2nd phase 200m x 200m spaced drilling over selected
targets, taking the project to an advanced exploration stage Teck ceased exploration on the project.
Location of Teck diamond drill holes are shown on Figures 31 to 34 and table of significant intercepts
from this work presented in Tables 17 to 20.
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Figure 29: Teck Araguaia Project Airborne Magnetics – Analytical Signal
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Figure 30: Teck Araguaia Exploration Map
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Figure 31: Teck’s core drilling at the North sector
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Figure 32: Teck’s core drilling at the Centre sector
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Figure 33: Teck’s core drilling at the Pequizeiro sector
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Figure 34: Teck’s core drilling at the South sector
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10.2 Exploration in the Horizonte Minerals Lontra Licences
Horizonte Minerals commenced exploration on the Lontra project late in 2006.
A summary of the data collection work completed by Horizonte Minerals from 2006 to 2009 is
presented in Table 17 below.
Table 17: Exploration work completed by Horizonte Minerals from 2006 to 2009 at Lontra Project
Horizonte Minerals Summary of Exploration 2006 – 2009
Type of Work Number Total (m) Comments
Stream sediment, soil and rock sampling 2,024 ‐
Auger drill holes 124 921
RC drill holes 0 0
Diamond drill holes 63 1,299.5
400m x 80m, 200m x 200m, 100m x 100m spacing
The following sections 10.2.1 to 10.2.3 are modified from Owen et al, 2010.
10.2.1 Topographic Surveys
The only topographic surveys carried out was a Total Station differential GPS survey on the
completion of the diamond drilling programs on the Northern and Raimundo targets to tie in the
collars of the drillholes. For all other activities a grid using data from the NASA SRTM program was
used and contoured at 10m, 2m and 1m contour intervals depending on the detail of the maps being
generated. The SRTM data is satellite radar data collected by NASA and prepared and made available
on a 90m grid for use in South America.
10.2.2 Surface Exploration and Mapping
Exploration was initiated by HM in late 2006 with a regional low threshold, multi‐element, fine
fraction stream sediment survey. This led to the definition of seven anomalous zones of which three
were considered priority nickel targets. Initial field reconnaissance indicated the presence of
previously unmapped ultramafic lithologies and produced a rock sample, from a laterite gravel pit
being used to obtain road base, with visible garnierite indicating the potential for lateritic nickel.
In 2007, after formalising the JV on the Lontra Project, the stream sediment targets were followed
up by regional (400m x 80m grid) multi‐element soil sampling programmes. HM soil geochemical
survey grids for the Lontra project are shown in Figure 35 below.
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10.2.3 Drilling
10.2.3.1 Auger Drilling
In late 2007, a 124 hole auger drilling programme was initiated to evaluate the principal soil anomalies at Raimundo, Northern Zone and Southern Zone. Exploration success continued in 2007 with a number of mineralised nickel intervals being intersected in the auger drilling. However, the rising water table associated with the on‐set of the rainy season and the limited ability of the auger to penetrate to the saprock zone meant that many holes had to be abandoned above or within the mineralised interval. Figure 35 below shows HM auger drill hole coverage for the Lontra project.
10.2.3.2 RC Drilling
Horizonte Minerals have not conducted any work using reverse circulation drilling methods on the
project.
10.2.3.3 10.2.3.3 Diamond Drilling
In 2008 HM initiated the first of two phases of a diamond drilling programme. In total 63 diamond drill holes were completed totalling 1,299.5m to test the Northern and Raimundo Zone target anomalies. The programme consisted of:
31 holes completed on the Northern anomaly;
31 holes completed on the Raimundo anomaly; and
1 exploratory hole on the Southern anomaly. Within the programme vertical holes were drilled to 15‐25m in depth, ensuring that the saprock‐fresh rock interface was intersected. Drill hole spacing was as follows:
On 400m spaced lines with 80m hole centres (for geological sections and interpretation);
On 200m x 200m centres (for resource potential identification); and
On 100m x 100m centres (in the Raimundo high grade zone for definition of grade variation).
The diamond drilling programme was carried out with the objective of demonstrating the existence of lateritic nickel mineralisation over a significant area, and with the aim of demonstrating the potential of the area to contain a 30Mt lateritic Ni resource with a grade of >1.00 percent Ni. The first phase holes were drilled by drill contractor, Pacheco e Filhos Ltda of Rio Grande do Sul, using a Sullivan diamond drill with conventional drilling techniques. The second phase was drilled by Mariana Drilling, Inc. of Goiania, Goias using a BBS‐10 drill. The holes were drilled with HWT rods resulting in HQ core. High core recoveries were crucial to the reliability of the geochemistry and these were closely monitored, with less than 90 percent recovery being questioned and less than 80 percent not being accepted by HM.
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Holes were drilled through the lateritic profile to fresh rock where, in general, the hole was stopped after 3‐5m of highly competent massive fresh rock in the first phase and at the contact in the second phase. Holes were typically between 15‐25m long, but did reach over 30m in depth.
Diamond drill hole locations are presented in Figure 35 below.
Significant +1% Ni results returned from the 63 hole Horizonte Minerals Lontra project diamond
drilling programmes are summarised in Table 18 below.
Figure 35: Horizonte Minerals Lontra Exploration Map
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Table 18: Horizonte Minerals Lontra project; Mineral intersects at 1% Ni cut‐of‐grade
Horizonte Minerals Lontra Significant Drill Intercepts*
HOLE ID. EAST NORTH RL FROM TO WIDTH Ni ZONE
SECTION m m m %
LON_DDH001 664759 9143999 188.85 9.00 16.00 7.00 1.06 NORTHERN
LON_DDH002 664759 9143999 188.98 11.20 17.30 6.10 1.30 NORTHERN
LON_DDH003 664800 9144000 183.49 6.10 11.10 5.00 1.35 NORTHERN
LON_DDH004 664600 9143600 180.91 6.00 15.70 9.70 1.30 NORTHERN
LON_DDH006 664760 9143600 183.82 4.60 11.55 6.95 1.33 NORTHERN
LON_DDH007 664580 9143200 169.86 6.00 16.50 10.50 1.65 NORTHERN
LON_DDH008 664660 9143200 165.54 3.10 11.00 7.90 1.55 NORTHERN
LON_DDH010 664800 9143200 160.14 2.97 9.00 6.03 1.31 NORTHERN
LON_DDH012 664820 9144400 173.63 4.00 15.04 11.04 1.31 NORTHERN
LON_DDH013 665290 9144800 190.04 5.70 10.70 5.00 1.40 NORTHERN
LON_DDH014 665360 9144800 202.73 20.70 25.90 5.20 1.32 NORTHERN
LON_DDH015 665440 9144800 195.73 21.55 27.30 5.75 1.37 NORTHERN
LON_DDH018 665760 9144400 160.89 13.00 19.00 6.00 1.23 NORTHERN
LON_DDH020 664240 9139900 160.44 8.00 10.00 2.00 1.18 RAIMUNDO
LON_DDH021 664320 9139900 159.63 4.70 7.85 3.15 1.10 RAIMUNDO
LON_DDH022 664400 9139900 158.28 5.00 8.00 3.00 1.17 RAIMUNDO
LON_DDH026 664636 9139900 155.28 6.10 13.77 7.67 1.60 RAIMUNDO
LON_DDH027 665107 9139900 155.32 13.75 20.65 6.90 1.32 RAIMUNDO
LON_DDH028 664255 9140300 168.50 14.00 19.40 5.40 1.03 RAIMUNDO
LON_DDH028 664255 9140300 168.50 18.20 19.40 1.20 1.03 RAIMUNDO
LON_DDH029 664350 9140292 166.58 8.50 18.32 9.82 1.24 RAIMUNDO
LON_DDH032 664443 9139487 168.61 13.00 17.70 4.70 1.15 RAIMUNDO
LON_DDH033 665020 9139500 203.50 18.20 27.06 8.86 1.31 RAIMUNDO
LON_DDH034 665000 9139700 193.01 25.09 27.05 1.96 1.26 RAIMUNDO
LON_DDH039 665066 9139625 179.11 3.83 8.62 4.79 1.47 RAIMUNDO
LON_DDH040 665080 9139800 161.02 7.70 15.73 8.03 1.28 RAIMUNDO
LON_DDH041 664969 9139805 160.37 5.35 19.18 13.83 1.40 RAIMUNDO
LON_DDH042 665070 9140000 150.14 3.87 13.52 9.65 1.35 RAIMUNDO
LON_DDH043 664300 9139544 175.24 10.92 13.78 2.86 1.19 RAIMUNDO
LON_DDH044 664540 9139510 166.06 11.43 16.26 4.83 1.45 RAIMUNDO
LON_DDH045 664400 9139700 179.90 18.00 26.22 8.22 1.53 RAIMUNDO
LON_DDH049 664260 9140100 158.00 10.30 13.34 3.04 1.07 RAIMUNDO
LON_DDH050 664783 9143406 194.08 16.50 20.00 3.50 1.54 NORTHERN
LON_DDH051 664600 9143400 170.91 8.84 17.00 8.16 1.28 NORTHERN
LON_DDH052 664727 9143800 199.27 17.50 22.00 4.50 1.24 NORTHERN
LON_DDH053 664800 9144200 185.16 5.30 9.40 4.10 1.06 NORTHERN
LON_DDH055 665600 9144600 161.33 13.60 21.41 7.81 1.42 NORTHERN
LON_DDH058 664300 9144800 169.97 6.90 13.27 6.37 1.32 NORTHERN
LON_DDH059 664100 9144800 174.62 13.00 22.51 9.51 1.28 NORTHERN
LON_DDH061 664520 9146000 180.17 5.50 11.56 6.06 1.15 NORTHERN
*Significant drill intercepts calculated using a 1% Ni cut off, minimum 2m width and maximum 2m internal dilution
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10.3 Exploration in Horizonte Minerals Araguaia Nickel Project (Combined Teck Araguaia and HM Lontra Licences)
Horizonte Minerals commenced exploration in the Horizonte Minerals Araguaia Nickel Project in
October 2010. The work to date has principally comprised core drilling to infill the previous drilling
completed by Teck on the Pequizeiro West and Pequizeiro targets. An exploration office was
established in Conceição do Araguaia in September 2010 to supervise this work.
10.3.1 Core Drilling
A 8000m drilling programme was designed to infill the previous drilling completed by Teck (200x
200m) on the Pequizeiro West, Pequizeiro and Baião targets. A drilling contract was arranged with
Geosonda Sondagens Geológicas Ltda. The contract is to drill HQ3 core in the infill drilling
programme that is designed to first reduce the drill spacing to 141m x 141m and then further reduce
the drill spacing on the Pequizeiro and Baião targets to 100m x 100m.
To May 2011 91 holes totalling 2433.6m have been completed with reported assay results. Half split
core samples were crushed and pulverised at SGS laboratory in Goiania and the resultant pulps
analysed at SGS laboratory in Belo Horizonte using tetraborate fusion X‐Ray Fluorescence. Full
QA/QC procedures were implemented, including the insertion of standards, duplicates and blanks.
The drilling at Pequizeiro West comprised 17 holes totalling 462.1m in 141m x 141m infill of the
original Teck holes. Figure 36 presents the location of the holes. The mineralised intercepts at a 1%
nickel cut‐off are included in Table 19.
The drilling at Pequizeiro comprises to date 74 holes totalling 1971.5m. This drilling represents the
completed 141m x 141m infill drilling and the start of the 100m x 100m infill drilling. Figure 37
presents the location of the holes. The mineralised intercepts at a 1% nickel cut‐off are included in
Table 19.
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Figure 36: Pequizeiro West Drilling completed in the Horizonte Minerals Araguaia Nickel Project
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Figure 37: Pequizeiro Drilling completed in the Horizonte Minerals Araguaia Nickel Project
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Table 19: Araguaia Nickel Project Infill Drilling. Mineralised Intercepts at a 1% Nickel Cut‐off
ARAGUAIA NIQUEL PROJECT ‐INFILL DRILLING COMPLETED WITH ASSAY RESULTS SINCE OCTOBER 2010 TABLE OF INTERCEPTS ‐ 1% NICKEL CUT‐OFF*
HOLE‐ID EASTINGS NORTHINGS FROM (m) TO (m)
WIDTH (m)
Ni (%)
Co (%) TARGET^
PCA‐DD‐0493 672301 9117101 10.33 26.27 15.94 1.55 18.27 PQW
PCA‐DD‐0494 672100 9117100 10.40 14.76 4.36 1.05 16.52 PQW
PCA‐DD‐0495 671900 9117100 NSI PQW
PCA‐DD‐0496 672300 9116900 NSI PQW
PCA‐DD‐0497 672500 9116901 6.29 13.21 6.92 2.07 15.17 PQW
PCA‐DD‐0498 671900 9117300 NSI PQW
PCA‐DD‐0499 672104 9117291 12.61 16.97 4.36 1.24 9.81 PQW
PCA‐DD‐0500 672103 9116904 9.23 14.03 4.80 1.15 13.94 PQW
PCA‐DD‐0501 672500 9117100 9.84 18.11 8.27 1.38 21.43 PQW
PCA‐DD‐0502 672301 9116700 8.76 19.02 10.26 1.29 22.15 PQW
& 22.44 24.62 2.18 1.07 20.43 PQW
PCA‐DD‐0503 671900 9117500 NSI PQW
PCA‐DD‐0504 672500 9116700 5.86 11.59 5.73 1.07 24.06 PQW
PCA‐DD‐0505 672700 9116700 1.49 3.89 2.40 1.10 24.80 PQW
PCA‐DD‐0506 672300 9117300 21.32 26.05 4.73 1.10 23.31 PQW
PCA‐DD‐0507 672800 9116600 NSI PQW
PCA‐DD‐0508 672689 9116909 NSI PQW
PCA‐DD‐0509 672399 9116601 NSI PQW
PCA‐DD‐0510 674120 9116306 NSI PQ
PCA‐DD‐0511 674300 9116300 NSI PQ
PCA‐DD‐0512 674500 9116300 NSI PQ
PCA‐DD‐0513 674700 9116300 NSI PQ
PCA‐DD‐0514 674300 9116101 2.87 18.64 15.77 1.28 17.52 PQ
PCA‐DD‐0516 674507 9116089 8.33 31.37 23.04 1.77 15.10 PQ
PCA‐DD‐0517 674700 9116100 13.12 33.10 19.98 1.50 12.83 PQ
PCA‐DD‐0518 674300 9115700 4.43 9.15 4.72 1.08 33.09 PQ
PCA‐DD‐0519 674101 9115893 NSI PQ
PCA‐DD‐0520 674300 9115900 3.55 6.51 2.96 1.38 29.46 PQ
PCA‐DD‐0521 674500 9115900 3.35 15.13 11.78 1.67 17.69 PQ
PCA‐DD‐0522 674499 9115695 NSI PQ
PCA‐DD‐0523 674700 9115700 5.09 14.91 9.82 1.13 18.53 PQ
PCA‐DD‐0524 674902 9115705 7.00 17.54 10.54 1.68 12.15 PQ
PCA‐DD‐0525 674700 9115900 9.20 20.22 11.02 1.95 19.96 PQ
PCA‐DD‐0526 674900 9116100 20.90 31.61 10.71 1.54 15.19 PQ
PCA‐DD‐0527 675100 9115700 9.54 20.02 10.48 1.53 19.17 PQ
PCA‐DD‐0528 674900 9115900 13.09 23.45 10.36 2.06 13.02 PQ
PCA‐DD‐0529 675100 9115900 14.96 29.26 14.30 1.93 13.73 PQ
& 32.05 42.94 10.89 1.21 15.75 PQ
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HOLE‐ID EASTINGS NORTHINGS FROM (m) TO (m)
WIDTH (m)
Ni (%)
Co (%) TARGET^
PCA‐DD‐0530 675300 9115900 7.58 11.23 3.65 1.09 13.06 PQ
& 13.77 22.97 9.20 1.18 16.59 PQ
PCA‐DD‐0531 675500 9115300 NSI PQ
PCA‐DD‐0532 675300 9115700 4.67 21.06 16.39 1.55 15.19 PQ
PCA‐DD‐0533 675305 9115497 2.96 6.52 3.56 1.05 32.86 PQ
PCA‐DD‐0534 675300 9115300 NSI PQ
PCA‐DD‐0535 675504 9115498 1.93 10.92 8.99 1.94 18.75 PQ
PCA‐DD‐0536 675105 9115497 6.05 15.20 9.15 1.39 11.45 PQ
PCA‐DD‐0537 675099 9115300 1.52 22.71 21.19 1.46 13.01 PQ
PCA‐DD‐0538 674700 9115500 NSI PQ
PCA‐DD‐0539 674901 9115500 NSI PQ
PCA‐DD‐0540 674504 9115500 NSI PQ
PCA‐DD‐0541 675700 9115297 NSI PQ
PCA‐DD‐0542 675700 9115500 2.79 18.81 16.02 1.88 15.36 PQ
PCA‐DD‐0543 675500 9115700 3.35 11.02 7.67 1.89 20.20 PQ
PCA‐DD‐0544 675700 9115698 7.49 10.77 3.28 1.37 15.10 PQ
PCA‐DD‐0545 675900 9115300 1.01 6.67 5.66 1.20 15.29 PQ
PCA‐DD‐0546 676097 9115097 NSI PQ
PCA‐DD‐0547 675900 9115500 5.00 27.27 22.27 1.74 11.21 PQ
PCA‐DD‐0548 676100 9115300 11.45 23.29 11.84 1.87 15.97 PQ
PCA‐DD‐0549 675898 9115089 NSI PQ
PCA‐DD‐0550 676100 9115500 NSI PQ
PCA‐DD‐0551 676300 9115300 18.79 25.82 7.03 1.50 32.66 PQ
& 34.55 38.34 3.79 1.27 29.15 PQ
PCA‐DD‐0552 676300 9115100 17.05 26.46 9.41 1.36 12.62 PQ
PCA‐DD‐0553 676500 9115100 12.69 31.67 18.98 1.39 24.48 PQ
PCA‐DD‐0554 676500 9115300 17.87 28.44 10.57 1.88 17.40 PQ
PCA‐DD‐0555 676700 9115100 10.47 23.00 12.53 1.49 11.57 PQ
PCA‐DD‐0556 676700 9114901 NSI PQ
PCA‐DD‐0557 676900 9114900 6.75 10.66 3.91 1.00 15.84 PQ
PCA‐DD‐0558 676701 9115300 11.62 14.32 2.70 1.91 18.09 PQ
& 19.15 21.49 2.34 1.26 16.46 PQ
PCA‐DD‐0559 676900 9115100 2.76 15.01 12.25 1.58 21.36 PQ
& 18.26 21.54 3.28 1.22 10.34 PQ
PCA‐DD‐0560 677100 9114900 5.04 9.51 4.47 1.29 26.37 PQ
PCA‐DD‐0561 677400 9115000 7.97 10.06 2.09 1.09 30.19 PQ
PCA‐DD‐0562 677100 9115100 NSI PQ
PCA‐DD‐0563 676900 9115299 NSI PQ
PCA‐DD‐0564 677498 9114711 NSI PQ
PCA‐DD‐0565 677200 9115000 NSI PQ
PCA‐DD‐0566 677201 9115191 NSI PQ
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HOLE‐ID EASTINGS NORTHINGS FROM (m) TO (m)
WIDTH (m)
Ni (%)
Co (%) TARGET^
PCA‐DD‐0567 677104 9115009 2.03 4.70 2.67 1.12 36.06 PQ
PCA‐DD‐0568 677700 9114700 NSI PQ
PCA‐DD‐0569 676900 9115000 NSI PQ
PCA‐DD‐0570 677000 9115100 4.33 10.77 6.44 1.91 35.07 PQ
PCA‐DD‐0571 677200 9114800 NSI PQ
PCA‐DD‐0572 676800 9115100 9.45 21.45 12.00 1.55 11.48 PQ
PCA‐DD‐0573 676700 9115000 5.71 7.72 2.01 1.68 22.65 PQ
PCA‐DD‐0574 676900 9115200 6.37 9.95 3.58 1.93 10.20 PQ
PCA‐DD‐0575 677300 9114700 NSI PQ
PCA‐DD‐0576 676800 9115300 7.64 17.27 9.63 1.75 19.60 PQ
PCA‐DD‐0577 676700 9115200 14.56 21.93 7.37 1.24 11.10 PQ
PCA‐DD‐0578 676600 9115300 16.00 29.32 13.32 1.72 13.91 PQ
PCA‐DD‐0580 676600 9115100 14.13 28.47 14.34 1.73 16.80 PQ
PCA‐DD‐0581 677300 9114900 NSI PQ
PCA‐DD‐0582 676500 9115200 14.15 26.27 12.12 1.73 13.18 PQ
PCA‐DD‐0583 676402 9115103 10.28 24.87 14.59 1.14 11.60 PQ
PCA‐DD‐0584 676400 9115300 22.31 33.42 11.11 1.69 21.09 PQ
PCA‐DD‐0585 676300 9115200 RESULTS AWAITED PQ
PCA‐DD‐0586 676200 9115300 10.41 29.03 18.62 2.40 18.31 PQ
* Intercepts were calculated using a 1% nickel cut‐off, 2 metre minimum width and 2 metre maximum internal waste.
Weighted averages were calculated using double weighting i.e. individual samples were weighted against both length and bulk density ^ PQW = Pequizeiro West; PQ = Pequizeiro.
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11 Sampling Method and Approach
Sampling method and approach is reported for Teck exploration data including that which has been
used as inputs to the current resource estimation. Details are also provided for the Horizonte
Minerals exploration data for completeness and in preparation for future resource update studies.
The described sampling methods and procedures used by Teck and by Horizonte Mineral at the
Lontra project were not reviewed by Dr Audet. However, it is Dr Audet’s opinion and as stipulated in
section “Data Verification”, that the Araguaia project’s resource database builds using Teck’s data
meets industry standards and is compatible with the JORC and CIM codes for public reporting.
11.1 Teck
Sample method and approach employed for the Teck Araguaia historical data are taken from
reported techniques employed by Teck whilst exploring the adjacent Lara project during the same
period and cross checked by current Teck personnel and former members of the Araguaia project
exploration team. Information is also sourced from generic Teck nickel exploration PowerPoint
presentations for the period, again cross‐checked by Teck personnel.
11.1.1 Core Sampling
Teck drill core handling and processing involved the following steps:
Core retrieved placed in clearly marked 3m core boxes
Core is secured and transported to camp
Core is photographed
Geological logging
Geotechnical logging
Bulk density measurements taken
Core marked and sampled
Retained core stored in on‐site core storage facility
Teck diamond drilling was HQ size using triple tube methodology. Drill core was retrieved in
maximum 3 metre runs, typically between 20 centimetres and 2 metres depending upon ground
conditions.
At the drill site Teck technicians were responsible for the control of the drilling, stopping of holes,
upkeep of core run records, logging of core recovery, marking of drill core and core boxes and
selection and preservation of bulk density samples (Houle, 2010). Core boxes were built to contain
up to 3 metres of core.
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At the end of each shift drill core was covered with a wooden board, secured with nails and carefully
transported to the core processing facility at base camp within the project for logging and sampling.
Drillcore was photographed and geologically logged and marked by the geologist prior to sampling.
Evidence of only dry core photography exists.
Standard and accepted industry practice was employed for the sampling of drill core. Softer core
sections are halved with a sharp spatula or knife, with harder sections of drill core being cut by an
electric core saw. Sample intervals ranged from less than 1m to a maximum of 1.5m, typically less
than 1m in keeping with geological logging. The wider sample interval lengths were taken within the
same or similar wider lithological units and to compensate for any variations in core recoveries
between runs.
Teck geologists and core handlers marked a reference line on drill core prior to sampling to ensure
sampling consistency and sampling perpendicular to structures and observed fabrics.
Half drill core samples were placed in tagged plastic bags with sample ticket inserted, and sample
number written in permanent marker pen. Bags were secured with cable ties.
Half drill core was retained and stored in the core box for future reference with sample intervals
marked on the core box with the use of metal tags (Bennell, 2010; Houle, 2010).
In total, some 18,712 individual samples were taken and sent for preparation and analysis from the
Teck diamond drill holes comprising of 15,841 from DDH’s and 470 from RC drill holes (figures
include quality control standards and blanks). The remaining 2,401 samples are believed to be from
surface sampling.
11.1.2 Reverse Circulation Drill Sampling
Teck RC sample handling and processing involved the following steps:
1 metre bulk samples collected from cyclone
Samples chipped for geological logging
1 metre bulk samples weighed, sealed and transported to RC receiving area
1 metre samples air dried
1 metre samples riffle spit
Split sample sent for preparation and analysis
Bulk sample stored at Teck on‐site and off‐site storage facilities
One metre bulk RC samples were collected in marked plastic bags from the cyclone and transported
to a RC receiving area on site (Houle, 2010).
Bulk samples were chipped, with chipped 1 metre intervals being stored in compartmentalised RC
wood boxes similar to core boxes for logging and future reference.
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At the RC receiving area 1m samples were laid out on plastic sheets to sun‐dry. Once dry samples
were sent through a Jones riffle splitter where 50 % of bulk 1 meter sample was spilt for dispatch to
the laboratory for preparation and analysis.
The remainder of the 1 meter bulk sample was stored at the RC receiving facility on site or other
Teck storage facility elsewhere. At present part of the Teck RC drill bulk samples are stored in the
HM facility at Conceição do Araguaia, with those held by Teck are in the process of being shipped to
the HM storage facility at Conceição do Araguaia.
11.1.3 Geological Logging
Drill core was photographed and logged prior to sampling. Evidence suggests core was dry
photographed only.
Drill core and RC geological logging intervals were determined by lithology rather than set intervals
and logging recorded using standard practice hardcopy graphical logging sheets to capture pertinent
geological information for each deposit including lithology, facies, and texture.
Geological information recorded as hand written sheets is then transferred to excel
spreadsheets/direct to an AcQuire database.
For geotechnical logging Teck recorded core recovery, RQD and expansion.
Drill core were routinely measured for magnetic susceptibility, using a Terraplus Inc. KT‐9 digital
magnetic susceptibility meter hand held measuring device. Magnetic susceptibility was measured
for all core at 20cm intervals. This information was stored in the database for use in geological
logging and further deposit analysis and interpretation.
11.1.4 Survey
In 2006 Teck commissioned Prospectors Aerolevantamentos Esistemas Ltda to undertake
geophysical surveys across the Araguaia project area and as part of this survey digital 10m
topographical coverage of the project area was acquired. A twin engine Piper Navajo/Chieftain
PA31‐350. Data for the surveys were recorded using an RMS DGR 33A data acquisition system, a
Magnavox/Leica MX 9212 twelve channel GPS receiver (Miranda, 2006)
Teck Drillholes were positioned with handheld GPS and surveyed using DGPS.
No downhole surveys were taken due to the short, vertical nature of the drill holes.
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11.1.5 Bulk Density
Ten to fifteen cm long bulk density samples were taken from all Teck drill core at intervals of
approximately 1.5 metres. In total, 6,257 bulk density determinations were measured for the Teck
diamond drilling (ref: Section 12).
11.1.6 Auger Sampling
The Teck procedure for sampling the mechanical auger drill involved the mixing of each individual 1
meter down hole sample on a plastic sheet on the ground. The mixed sample was then quartered
and the quarter sample collected for bagging and dispatch to the laboratory for preparation and
analysis.
Bottom of hole auger samples were typically less than 1 meter due to limitations with auger
penetration at depth therefore end of hole samples were often less than a full meter interval.
(Bennell, 2010).
11.1.7 Soil Sampling
Teck soil survey grid density varied from 1st pass new target testing on 100m sites along 400m wide
traverses to 50m spaced sample sites along 200m spaced traverses for detailed follow up.
Where present, Teck sampled the B horizon soil layer typically located approximately 15‐20cms
below the surface or just under the organic rich layer.
Approximately 2kg of whole soil sample was collected at each site.
Duplicate samples were inserted into the sample stream every 20th sample, with the duplicate
collected 1‐2 metres away from the primary sample for that site (DNPM 850.514/850).
11.2 Horizonte Minerals (Lontra Licences)
Sample methodology and approach employed for the Horizonte Minerals exploration data is taken
from procedure summary documents for the Lontra project and site visit process methodology
review and verification by the independent consultant (Wardell Armstrong International).
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11.2.1 Core Sampling
Horizonte Minerals drill core handling and processing involved the following steps:
Core retrieved placed in clearly marked 3m core boxes and recovery calculated
Core box is tagged, secured and transported to camp
Core is photographed
Geological logging
Bulk density measurements taken
Core marked and sampled
Retained core stored in on‐site core storage facility, now in Conceição de Araguaia
Horizonte Minerals diamond drilling at Lontra obtained HQ diameter core using HWT rods and
conventional drilling operation
On site the HM drill hole core samples were recovered by the drilling contractor from the core
barrel. Core was retrieved in maximum 2 metre runs, typically between 20cm and 1.5 metres
depending upon ground conditions. The core was wrapped in plastic sheet, placed in wooden boxes
and the core recovery calculated. The end of each core run is marked by a wooden block was placed
and nailed into the core box separating one run from the next. Onto this block a punched metal tag
was nailed with the following information;
Depth
Advance
Recovery Core boxes can accommodate up to 3 metres of core. On filling each core box with core a metal plate was attached to the front with the following information punched into the plate.
Drilling Contractor
Project,
Location
Hole ID
Box No.
From
To
The core box is then nailed closed and stored at a safe location within the drilling cordon, until the
end of the shift. During the course of drilling random checks were made on the recorded drill depth
with the actual drill depth. Core boxes were collected and transported to the HM do Brasil field
camp, located centrally within the area, at the end of each day.
At the field camp the external description plates were verified and the core boxes ordered. The core
was then photographed. The boxes were then put on logging benches and the core recovery was
verified.
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The core was then logged by the project geologist and bulk density sample intervals identified.
Bulk density samples mostly consisted of 10 to 15 cm lengths of the whole core. The rest of the core
was sampled taking half core for analysis. On completion of density measurements, bulk density
samples were returned to the core box for inclusion in routine sampling.
The HM project geologist defines the intervals for geochemical sampling noting the insertion of
QA/QC samples. The sample numbers were then marked on the core boxes using aluminium tape
embossed with the sample number. This tag is placed on the wood divide at the beginning of each
sample.
On completion of marking the core was sampled using the following procedures / guidelines:
The nominal sample length was 1 metre.
Samples breaks were also made at geological contacts defined by the geologist.
Half splits of the core were taken for analysis. The soft material was split using a paint scraper and hard core was cut by HM do Brasil personnel, with a diamond saw.
Samples were sealed in plastic sample bags.
The unique sample number assigned to each sample was written on the sample bag with a permanent marker and a sample number tag placed within the sample bag.
After collection of all the samples the sample bags were ordered and appropriate QA/QC samples inserted in the sequence.
The samples were then double bagged and packaged in lots of approximately 40kg for transportation to the sample preparation facility.
The remaining half core was maintained in the wooden core boxes which were nailed closed and stored in the HM do Brasil core storage area within the project.
The core boxes have since been removed and are now stored in the core storage and logging facility in Conceição de Araguaia. This core is being re‐logged to ensure consistency across the Araguaia Project.
Sample intervals were defined within laterite facies, not across facies boundaries. A nominal sample
length of 1m was used. Relic fragments of unweathered bedrock of less than 10 cm in length within
the saprolite facies were sampled together with the facies in which it occurred. If exceeding 10 cm
the fragment was sampled separately.
Soft sections of core were split lengthwise using a sharp plastic spatula and a standard electric
diamond rock saw for harder sections of core.
The samples were placed in heavy‐duty plastic bags with a number tag, permanent marker pen ID
and sample ticket. Bags sealed and weighed and weights recorded before shipment to the
laboratory. Standards, duplicates and blanks were inserted in the consecutive sample numbering
system.
Split core was then photographed wet for reference.
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11.2.2 Geological Logging
The drill hole cores were logged by HM do Brasil geologists. Sample intervals, recovery, laterite code,
lithology, colour, texture, plasticity, the presence of key minerals, structures, magnetic susceptibility
and amount, type and size of poorly weathered fragments were recorded on a logging sheet, and
accordingly intervals were assigned to the appropriate facies.
During the initial stages of the drilling program, lateritic nickel specialist, Roger Billington was
contracted to consult on the drilling and logging procedures adopted. Following his
recommendations a simple nomenclature system was developed for the laterite facies (Zones). Core
logged up to this point was re‐logged and the simplified nomenclature procedure adopted. In
general, good core recoveries in the mineralised zones were achieved and the samples are
considered representative of the Lontra Project laterite facies.
Drill hole lithological logging was done manually and converted to a digital representation using
Microsoft Excel and then transferred to the company’s Access database by the HM Database
Administrator.
Horizonte Minerals did not undertake geotechnical logging beyond the measure of core recovery.
11.2.3 Survey
Horizonte Minerals contracted qualified surveyors using differential GPS and total station theodolite
for the picking up of diamond drillhole collars. Measurements are recorded to the millimetre with
centimetric accuracy.
Garmin handheld GPS devices are used for field mapping, traverses, planned holes, trenches pits and
surface sampling points. Handheld GPS reports to an approximate 3 ‐ 5 metre accuracy.
Downhole survey measurements were not taken due to the short vertical nature of the drillholes.
11.2.4 Bulk Density
Samples for bulk density determination were selected from all relevant facies types. The samples
were marked with drill‐hole name, interval and laterite facies or rock type.
The selected drillholes are fairly evenly distributed over the sector. For LO‐DDH‐033 onwards,
individual samples of 10 to 15cm in length were selected immediately after the geological logging of
the hole. Samples were picked from intact and coherent core taking care to select ‘representative’
pieces of core from each facies type. Bulk density measurements were done in the field office by
HM do Brazil’s geo‐technician following a standard procedure defined by Roger Billington and
described in section 12.2.4 below.
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On holes drilled prior to LO‐DDH‐033, 28 half‐core samples were selected for density
determinations. These core samples had their wet and dry density measurements calculated using a
simplified version of the procedure described in section 12.2.4, in which plastic wrap rather than
paraffin wax was used to make the core sample impermeable.
Density core samples were weighed and the volume was determined using a water displacement
method.
In total, to date 90 bulk density determinations have been measured from 34 drillholes for the HM
Lontra drilling.
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12 Sample Preparation, Assaying, Security
12.1 Teck Licences
Teck Sample preparation, assaying and security is taken from reports on exploration conducted at
the adjacent Lara project during the same period, Teck procedure PowerPoint presentations and
discussion with Teck site personnel.
The described sample preparation procedures used by Teck were not reviewed by Dr Audet.
However, it is Dr Audet’s opinion and as stipulated in section “Data Verification”, that the Araguaia
project’s resource database builds using Teck’s data meets industry standards and is compatible with
the JORC and CIM codes for public reporting.
12.1.1 Routine Sample Analysis
Two sample preparation and analytical procedures are referred to in available documents, wholly
using SGS‐GEOSOL (Teck procedure .ppt) and using in‐house preparation and SGS GEOSOL analytical
facilities (Lara report).
The majority of core samples for routine analysis were shipped to the Teck Santa Fe Project
preparation facility. Teck employed a local trucking company to ship the samples from their project
office in CdA to the Santa Fe facility.
On arrival at the Santa Fe preparation facility 1st pass portable XRF analysis was performed by Teck
personnel to screen samples for chemical analysis using an INNOV‐X portable device.
Samples were dried for 12 hours at 105 degrees Celsius then crushed to achieve 95% passing
through ‐2mm. Every 20th sample was screened to ensure quality. Crushed samples were re‐dried
at 105 degrees Celsius and pulverised to 95% passing 150mm using a ring and puck mill. Again every
20th sample was screened to ensure quality.
Pulps were sent from the Santa Fe preparation facility, via the SGS prep facility at Goiania to SGS
laboratory in Belo Horizonte where they underwent XRF analysis (see analytical package below).
Most of the course rejects and pulps were stored at the Santa Fe facility with a small number
returning to the project office at Araguaia.
Where both preparation and analysis was done off‐site by SGS this was undertaken at the SGS
Goiania pulverizing facility and SGS GEOSOL laboratory in Belo Horizonte.
Sample chain of custody was transferred to SGS at the drying stage. Each sample was dried for 12
hours at 105 degrees Celsius then crushed to achieve 95% passing through ‐2mm. Every 20th sample
was screened to ensure quality.
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An approximate 300 gram crushed sample was then sent to SGS Goiania facility for pulverisation.
At the SGS Goiania facility, crushed samples were re‐dried at 105 degrees Celcius and pulverised to
95% passing 150mm using a ring and puck mill. Again every 20th sample was screened to ensure
quality. Due to issues arising from vermiculite content size requirements were reduced to 90%
passing through 150mm mesh.
On completion of pulverisation a 30 gram pulp sample was sent to SGS, Belo Horizonte for analysis.
Pulp rejects were returned to the Teck laboratory in Santa Fe (Houle, pers. comms 2011).
Pulp samples underwent analysis by “MXR‐Laterite” package with Borate Fusion and XRF
determinations for NiO, Cu, Co, loss‐on‐ignition (LOI) and major oxides (SiO2, Al2O3, Fe2O3, MgO, CaO,
P2O5, MnO, TiO2 and Cr2O3).
The Borate Fusion method entails the preparation of a homogenous glass disk by the fusion by
calcination at 1000°C of 0.2 to 0.5 g of rock pulp with 7 g of lithium tetraborate/lithium metaborate
(50/50). The loss‐on‐ignition (LOI) at 1000°C was determined separately gravimetrically and was
included in the matrix‐correction calculations, which were performed by the XRF instrument
software. The disk specimen was analyzed by wave‐length dispersive XRF spectrometry. The results
were exported via computer, and data fed to the Laboratory Information Management System with
a secure audit trail. Corrections for dilution and summation with the LOI were made prior to
reporting.
Early stream sediment and surface rock ship samples were sent to SGS‐GEOSOL in Belo Horizonte
minus 200 mesh sample by ICP for 35 elements and Fire Assay for Au (DNPM 850.514/850).
Routine 2kg soil samples collected by Teck within the property were sent to SGS Goiania facility for
drying at 105°, crushing to 95% minus 200 mesh where 350g was taken for pulverisation to 95%
passing through minus 150 mesh.
100g pulp samples were sent to SGS GEOSOL laboratory in Belo Horizonte for lithium tetraborate
digest and XRF analysis for major elements Ni and Co, iron as Fe203, Na2O, K2O and V2O5 (DNPM
850.514/850).
12.1.2 Check Sample Analysis
Where primary analysis had been undertaken at the Teck in‐house facilities, check assays were
conducted on selected samples at SGS GEOSOL in Belo Horizonte (Bennell, 2010).
SGS GEOSOL quality management systems have been certified as complying with international
standards ISO 9001 and ISO 17025.
SGS Geosol quality management systems have been certified as complying with international
standards ISO 9001 and ISO 14001.
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Where primary analysis was undertaken at SGS GEOSOL check analysis was done at the same
laboratory or at the GDL facility.
12.1.3 Magnetic Susceptibility Analysis
Magnetic susceptibility analysis was performed using a Terraplus Inc. KT‐9 digital magnetic
susceptibility meter hand held measuring device.
Magnetic susceptibility using a Magnetic susceptibility was measured for all core at 20cm intervals.
Readings were taken on average every 20 centimetres on drill core only.
12.1.4 Bulk Density Analysis
Teck bulk density measurements were determined using a water displacement method. Standard
wet weight in air and in water, and dry weight method. Core was wrapped in cling film to prevent
water penetration (Figures 38 to 40). Density was calculated using Archimedes principle.
Figure 38: Teck bulk density core sample selection. (Samples wrapped in plastic wrap)
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Figure 39: Balance
Figure 40: Bulk density sample in cradle
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For the purposes of the resource estimation the following screening was undertaken by Dr. Audet on
the Teck bulk density data:
A Geofacies was assigned to each sample based on the geochemical correlation matrix as presented
in Table 9. Bulk density value (wet and dry) and moisture content were then assigned based on
Geofacies (Table 20).
Using the assigned facies, the entire density DB was sorted on facies and global SG dry and SG wet
defined for each facies (see table below). Out of 6,257 specimens only 840 were not used nor had a
facies allocated.
Few modifications were applied to the density DB:
Limonite facies: only specimens showing moisture content greater than 20% were retained
Ferricrete facies: only specimens showing moisture content below 20% were retained
Bedrock facies: only specimens showing moisture content lower than 10% were retained
Rocky Saprolite: only specimens showing moisture content lower than 30% were retained Using the above parameters, the proposed SG dry and SG wet were found acceptable and can be used for Mineral Resource estimations. The project team will continue collecting density measurements from the upcoming drilling program. Table 20: Dry and wet bulk densities and moisture content (October 2010), as used in the current resource and reserve estimates
Facies Nb samples SG dry SG wet Ni% Co% MgO% Fe% SiO2% AL2O3% CR203%
Soil 510 1.71 2.06 0.13 0.04 0.13 27.83 27.56 18.16 1.40
Ferricrete 16 1.95 2.31 0.35 0.10 0.22 48.94 6.99 10.46 2.26
Limonite
684 1.33 1.81 0.91 0.11 2.36 34.38 24.31 9.96 2.14
Transition
1,011 1.33 1.70 1.11 0.04 13.41 16.57 46.09 4.65 1.11
Rocky Saprolite
922 1.49 1.82 0.99 0.03 24.26 10.65 43.34 4.44 0.73
Silicified Sap 27 1.50 1.89 0.53 0.03 5.34 9.35 71.91 3.36 0.53
Bedrock
266 2.32 2.41 0.27 0.01 35.85 5.72 39.93 1.29 0.43
Diorite
305 1.55 1.91 0.21 0.02 3.72 11.60 48.83 17.49 0.25
Sediment
1,490 1.62 1.96 0.04 0.01 1.46 8.59 59.04 16.27 0.13
Cao Rich 14 2.87 2.92 0.06 0.01 17.64 3.53 15.57 0.60 0.20
Dike Al
162 1.73 2.00 0.13 0.01 3.48 5.45 61.15 15.78 0.07
QTZ vein 10 2.18 2.32 0.03 0.01 0.47 1.82 94.26 1.03 0.08
Not allocated
840
Total
6,257
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12.2 Horizonte Minerals Lontra Licences
12.2.1 Routine Sample Analysis
Horizonte Minerals drill core sample preparation was carried out in Goiania by SGS Geosol
Laboratories. Analyses were carried out by SGS Geosol Laboratories in Belo Horizonte.
The 62 drillholes from the Northern Zone and Raimundo Zone, (LO‐DDH‐001 to LO‐DDH‐062) were
prepared at the SGS Geosol Laboratory sample preparation facility in Goiania using the methodology
denominated as “PREPINT”. The following procedure was used for sample preparation of the half
core samples submitted:
The samples were dried for 12 hours at 60˚C and checked visually for dryness.
The entire sample was crushed to 90% passing 2 mm.
The entire sample was homogenised.
A 1000 g (1kg) sample was riffle split from the crushed sample.
The crusher rejects were returned to the original sample bag, sealed and stored at SGS Geosol
The 1000 g split sample was pulverised to 95% passing 100μm (150#) using a Labtech LM 2000 with 2 rings and puck.
The pulverised sample was split into two parts one used for the preparation of a fused disc for analysis and one packaged for storage.
Pulps were stored at SGS Lakefield.
Following completion of the program, both the crusher reject and pulp samples have been obtained from SGS Geosol and are stored in HM do Brazil’s sample storage facility in Goiania.
Pulp samples for fusion were prepared for all samples from holes LO_DDH‐001 to LO‐DDH062 and
were despatched by courier from the SGS Geosol Laboratory preparation facility in Goiania to their
analytical facility in Belo Horizonte. The method used was the “MXR‐Laterite” package with Borate
Fusion and XRF determinations for NiO, Cu, Co, loss‐on‐ignition (LOI) and major oxides (SiO2, Al2O3,
Fe2O3, MgO, CaO, P2O5, MnO, TiO2 and Cr2O3).
The Borate Fusion method entails the preparation of a homogenous glass disk by the fusion by
calcinations at 1000°C of 0.2 to 0.5 g of rock pulp with 7 g of lithium tetraborate/lithium metaborate
(50/50). The loss‐on‐ignition (LOI) at 1000°C was determined separately gravimetrically and was
included in the matrix‐correction calculations, which were performed by the XRF instrument
software. The disk specimen was analyzed by wave‐length dispersive XRF spectrometry. The results
were exported via computer, and data fed to the Laboratory Information Management System with
a secure audit trail. Corrections for dilution and summation with the LOI were made prior to
reporting.
This method has been fully validated by SGS for the range of samples typically analyzed. Internal
validation by SGS includes the use of certified reference materials, replicates and blanks to calculate
accuracy, precision, linearity, range, and limit of detection, limit of quantification, specificity and
measurement uncertainty.
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Horizonte Minerals do Brasil introduced additional blanks, duplicates and field standard reference
material.
SGS GEOSOL quality management systems have been certified as complying with international
standards ISO 9001 and ISO 14001.
12.2.2 Check Sample Analysis
Check assays were conducted on selected samples at ALS Chemex laboratory, Vancouver, Canada
using the same method as used by SGS GEOSOL with measurements for Ni, Co, Cu loss‐on‐ignition
(LOI) and major oxides. In addition to the above Pb and Zn were also included in the ALS Chemex
package.
ALS Chemex quality management systems have been certified as complying with international
standards ISO 9001 and ISO 17025.
12.2.3 Magnetic Susceptibility and Gamma Log Analysis
Horizonte Minerals did not perform magnetic susceptibility or gamma log analysis on drill core.
12.2.4 Bulk Density Analysis
Bulk densities factors (BDF) were determined by Horizonte Minerals do Brasil in their facilities in the
Lontra Project camp. 90 representative samples of 10 ‐15 cm lengths of core from each of the major
laterite facies were determined. The samples were selected from 34 drillholes that are well
distributed over the extent of the laterite development in the Northern and Raimundo sectors.
Density was measured using a standard procedure described below:
The wet sample weight was measured in air.
Sample was coated with paraffin and weighed again in air.
The coated sample was placed on a platform suspended from the scale in a bath of water and weighed under water.
The volume of the core sample was calculated.
The wet bulk density was calculated by dividing the weight of the wet sample in grams by its volume in cubic centimetres.
The paraffin was removed and sample was weighed in air.
The sample was dried for 12 hours at ~ 100°C.
The dry sample was weighed in air.
The free moisture content was calculated using the weight of contained water divided by the weight of the wet sample expressed as a percent
The dry bulk density was calculated using the wet bulk density and the free moisture content.
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12.3 Security and Chain of Custody
12.3.1 Teck
Samples and data collection was handled by Teck personnel on site. Core was covered and RC
samples bagged and tied at the drill site ensuring every care was taken to eliminate contamination
and security breaches in the transfer of core and RC samples from drill site to processing facility.
Transport of samples collected by Teck from site to SGS preparation facilities was always by secure
carrier. Teck hired a local trucking company to transport samples from CdA to Santa Fe. Custody of
samples was handed over the SGS on arrival at the Santa Fe or Goiania preparation labs. Dispatch
sheets were used and signed to confirm dispatch and receipt of sample batches.
Data security was ensured by immediate transfer of hardcopy logs and records to Excel at the
Araguaia site warehouse, and imported through an AcQuire database management system to an
SQL/ORACLE database where data validation and subsequent export to exploration modelling
packages took place.
Hardcopy logs and sample record sheets are retained for reference.
The Teck sample and data process is summarised in the flow chart Figure 41 below.
Figure 41: Teck Araguaia Sample and Data Process Flow Sheet
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12.3.2 Horizonte Minerals
On site sampling and data collection was handled by Horizonte Minerals personnel. Core boxes
were nailed closed at the drill site ensuring every care was taken to eliminate contamination and
security breaches during the transfer of core from drill site to the field logging / sampling facility. On
receipt, data on the core box labels was verified and the core photographed as a record, prior to any
manipulation of the core boxes.
After collection of the samples, these were accommodated in heavy duty 5 litre plastic bags which
were labelled with a permanent marker on the outside with the sample number and before being
sealed the sample card tag was placed in the bag. All samples were double bagged i.e. placed within
a second heavy duty sample bag, sealed and then accommodated in lots of around 40kg in heavy
duty 100l sacks. These were sown closed and the bags labelled with the company name, batch
number, sack number and sample interval.
Horizonte Minerals personnel were responsible for transport of samples from the field camp to
Xinguara where they were placed with a transporter to Goiania. Samples were collected from the
transporter in Goiania by Horizonte Minerals personnel. Prior to leaving the transporter sample bags
were verified for damage and / or violation. After verification approval, the samples were delivered
directly to the SGS preparation laboratory by Horizonte Minerals personnel. Custody of samples was
handed over the SGS on arrival at the Goiania preparation labs.
The following procedures were in place to ensure sample security:
Daily auditing (advances, drill depth, protocols) of the drilling procedures and
placement of drillhole core into the core trays at the drill site was conducted by
Horizonte Minerals do Brasil personnel.
Core boxes were nailed closed on site and transported to the Horizonte Minerals do
Brasil camp facilities for logging and sampling.
Sampling was conducted by HM do Brasil geologists/geotechnicians.
Samples were packaged in heavy duty sealed plastic bags assigned with unique
samples numbers.
The samples were double bagged and accommodated in groups weighing around
40kg within sealed sacks.
The samples were transported to the Horizonte Minerals do Brasil Goiania office
using a separate baggage compartment within a daily coach service from Xinguara
to Goiania.
Horizonte Minerals do Brasil personnel collected and inspected the transported
samples from the transporter, verifying for any violation of the sacks.
The samples were transported by Horizonte Minerals do Brasil personnel to the SGS
Geosol preparation facility in Goiania.
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Crusher rejects and duplicate pulps were returned from the SGS Geosol laboratory
to the HM do Brasil storage facility in Goiania where they are stored.
Samples for analysis at SGS Geosol laboratory in Belo Horizonte and the ALS Chemex
laboratory in Vancouver were delivered by recognised courier service contracted by
the laboratory.
All half core is stored in the secure Horizonte Minerals do Brasil core warehouse /
logging facility in Conceição de Araguaia.
Horizonte drill hole logging and sample data collection was performed at the Horizonte field camp by
HM personnel. Data is captured by hardcopy and transferred to Excel at the earliest opportunity.
Data was stored and handled in Excel.
Analytical results are received from SGS in digital format via email, using a pre‐defined Excel file
format.
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13 QA/QC
13.1 Teck Licence Data: QA/QC
The Teck Araguaia QA/QC program included three control sample types used as Quality Assurance
(QA) controls. The different types of control sample were inserted along the sequential numbers of
the routine samples at pre‐designed intervals.
Control sample types are as follows:
Blanks
Standards
Duplicate assays
13.1.1 Blanks
Five different blank samples type were used as blank material, inserted at an approximate interval of
1 for approximately 15 samples and submitted to SGS Laboratory Belo Horizonte, Brazil. A total of
730 blanks were used by Teck in their exploration program in 2007‐2008, comprising 5% of the total
samples submitted for analysis. Out of the 730 blank samples, 98% returned below detection limit,
2% of them returned 0.02%Ni values and only 1 sample gave 0.09%Ni.
The assay results from blanks are considered to be satisfactory.
13.1.2 Standards
From early 2007, Teck has inserted five different standard materials with various values of Ni into
the assay sample submission series providing blind standard assays in addition to the standards
inserted by SGS Laboratory. Table 21 shows the composition of standards submitted by Teck, and
Figures 42 to 46 show plots of Ni relative to the average values and ±5% and ±10% variation limits.
These standards were inserted at an approximate interval the basis of 1 for approximately 20
samples, frequently on a closer interval, and submitted to SGS Laboratory in Belo Horizonte, Brazil.
All analyses for standard SDT4 and SDT 5 are within ±5% variation relative to the average. Standards
SDT 6, SDT 7 and SDT 8 returned few analyses exceeding ±5% variation but without exceeding ±10%
variation, except one.
Standard analyses are considered to be satisfactory for assay accuracy.
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Table 21: Average composition of standards inserted in sample submission series by Teck
Standard n Ni%
STD4 111 2.573
STD5 107 1.741
STD6 127 0.295
STD7 228 2.017
STD8 141 1.188
Figure 42: Ni% variation for the Standard STD4
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Figure 43: Ni% variation for the Standard STD5
Figure 44: Ni% variation for the Standard STD6
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Figure 45: Ni% variation for the Standard STD7
Figure 46: Ni% variation for the Standard STD8
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13.1.3 Duplicate Assays
Teck selected 619 samples as duplicate. The re‐assay vs. original data were evaluated graphically by
plotting pairs of first vs. second assays for Ni, Co, Fe2O3, MgO, SiO2 and Al2O3 in correlation plots. The
correlation plots (Figures 47 to 52) show assay pairs along with lines for ±10% variation (solid blue).
In this type of comparison, Al2O3 shows trends similar to Fe2O3, SiO2 and MgO. These comparisons
are less useful for Ni and Co, as Ni, and more specifically Co, has reported values that have a high
proportion of very low values at, or near the detection limit.
The quality assurance criterion for check analyses is that more than 90% of samples assayed by the
check laboratory show less than 10% difference relative to the original assay values.
The comparison between original and repeat assays gives the results for Ni, Co, Fe2O3, MgO, SiO2 and
Al2O3 listed in Table 22.
With the exception of Co, all elements show satisfactory re‐assay precision statistics for the whole
range of data values with assay pairs showing less than 10% absolute difference between first and
second assays. Despite having a very high proportion of low value, Co returned a total of 88% of
samples assayed by the check laboratory with less than 10% difference relative to the original assay
values.
In summary, the duplicate assays are considered to demonstrate that the assays are reproducible
with satisfactory precision.
Table 22: Summary statistics of re‐assay precision on 668 samples submitted to SGS Laboratory
Ni Co Fe2O3 MgO SiO2 Al203
n % n % n % n % n % n %
0–10% Abs. diff. 613 92 53 80 646 97 587 88 661 99 627 9410–15% Abs. diff. 35 5 65 10 13 2 34 5 4 1 25 4
15–20% Abs. diff. 8 1 33 5 5 1 21 3 2 0 7 1
20–100% Abs. diff. 12 2 37 6 3 0 26 4 1 0 9 1
Total 668 66 668 668 668 668
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Figure 47: Araguaia Project: Accuracy on duplicates: Ni
Figure 48: Araguaia Project: Accuracy on duplicates: Co
‐0.50
0.00
0.50
1.00
1.50
2.00
2.50
3.00
0.00 0.50 1.00 1.50 2.00 2.50 3.00
%Ni Duplicate
Ni
Linéaire (10)
Linéaire (‐10)
0.00
0.02
0.04
0.06
0.08
0.10
0.12
0.14
0.16
0.18
0.20
0.00 0.05 0.10 0.15 0.20
%Co Duplicate
Co
Linéaire (10)
Linéaire (‐10)
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Figure 49: Araguaia Project: Accuracy on duplicates: Fe2O3
Figure 50: Araguaia Project: Accuracy on duplicates: MgO
0.00
10.00
20.00
30.00
40.00
50.00
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70.00
80.00
0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00
%Fe2O3 Duplicate
Fe2O3
Linéaire (10)
Linéaire (‐10)
0.00
5.00
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15.00
20.00
25.00
30.00
35.00
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45.00
50.00
0.00 10.00 20.00 30.00 40.00 50.00
%MgO Duplicate
MgO
Linéaire (10)
Linéaire (‐10)
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Figure 51: Araguaia Project: Accuracy on duplicates: Al2O3
Figure 52: Araguaia Project: Accuracy on duplicates: SiO2
0.00
5.00
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20.00
25.00
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35.00
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45.00
50.00
0.00 10.00 20.00 30.00 40.00 50.00
%Al2O3 Duplicate
Al2O3
Linéaire (10)
Linéaire (‐10)
0.00
5.00
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20.00
25.00
30.00
35.00
40.00
45.00
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%SiO2 Duplicate
SiO2
Linéaire (10)
Linéaire (‐10)
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14 Data Verification
14.1 Teck Araguaia Project Data
Consulting geologist Marc‐Antoine Audet, P.Geo, Ph.D. was contracted by Horizonte Minerals Inc in
2010 to conduct a general review of the historical Teck data in the Araguaia project’s exploration
database. The review was performed during the month of October 2010 and was concomitant to a
site visit and with preliminary mineral resource estimations.
The due‐diligence method used by Dr. Audet was based on a standard list of verifications and
validations. The investigative work was intended to, 1) verify the results obtained and judgments
made on the project to date and 2) identify any problems related to data acquisition and to
proposed mitigation measures.
Data verification work included:
Topography versus collar locations
Geological logging
QA/QC procedures and results
Densities
Data entry procedures
Integrity of historical data
Ancillary work included:
Production of sections and plans showing thickness and grade‐thickness of ore
Intercepts at 1.0% nickel cut‐off grade, depth to base of profile for risk areas
Dr Audet reviewed and compiled information on QA/QC performed by Teck and found the data
acceptable (section 13). Data supplied by Teck on densities measurements were also reviewed and
compiled (section 12‐1‐4) by Dr Audet and was found acceptable.
Logging procedures and nomenclatures used by Teck was reviewed. Approximately 3,500m of core
material were relogged by Horizonte’s staff under the writer supervision. Despite some
discrepancies with Teck’s nomenclatures, it was found that the relogging fits well with the assigned
facies defined by the chemical correlation matrix.
Discrepancies were noted at the time of the field visit with survey coordinates for several boreholes,
mainly related to elevations. Since then Horizonte Mineral resurveyed all holes showing
discrepancies and integrated the new finding in a revised database together with a complete audit
trail. Modifications were minor and have no impact on accuracy on the reported Inferred Mineral
Resource.
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Conclusion
The Araguaia project’s resource database meets industry standards and is compatible with the JORC
and CIM codes for public reporting.
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15 Adjacent properties
There appears to be significant interest in the region of the current Horizonte Minerals Araguaia
Project demonstrated by the coverage of claims and number of exploration companies active within
the area. Figure 53 shows the landholding in the immediate vicinity of the Horizonte Minerals
Araguaia project licences.
Horizonte Minerals are currently in negotiation with Pan Brazilian Mineracao Ltda with a view to
entering into joint venture on licence 850.421/2004. Situated immediately to the west of HM
Araguaia permits 850.514/2004 and 850.515/2004, this tenement was part of the old Lara project
previously explored by Lara Exploration Limited.
The licences host part of the Vila Oito nickel prospect which extends across from the Horizonte
Minerals licences. Surface geological mapping and drilling shows that the aerial extension of the Vila
Oito saprolite mineralization (within the Lara license) to be approximately 1,500 m (north‐south) by
500 to 800m (eastwest). At a 0.9% Ni cut‐off, the mineralization is interpreted to occur in two
separate zones, separated by a zone of sub‐grade mineralization and is as follows (Bennell, 2010):
Main Zone: a lobate area trending north‐south that includes the ridge trend and the laterite covered zone south and east of the ridge, where the mineralization is dominantly associated with the green MgO‐rich saprolite zone. Mineralization varies in thickness from a few meters to as much as 23 m in thickness. Locally in the vicinity of the ridge, there is evidence for multiple stacked zones of mineralization down to almost 40 m depth.
North East Zone: a smaller zone in the northeast, located below the extensive laterite ferricrete hard cap surface and where mineralization is approximately 7 to 10 m thick and where the upper parts of the mineralized zones are dominated by yellow‐ochre limonite bands with low MgO contents (<3%). The basal parts of the intervals are green saprolite as in the main zone.
The authors have been unable to verify the information stated in section 15. The information is not necessarily indicative of the mineralisation on the property that is the subject of the technical report. The authors are unaware of significant developments within other immediately adjacent properties.
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Figure 53: Land tenure adjacent to Horizonte minerals holding
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16 Mineral Processing and Metallurgical Testing
Not applicable.
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17 Mineral Resource and Mineral Reserve Estimates
17.1 Araguaia Project The Mineral Resource estimates for the Araguaia project were conducted under the direction of
consulting geologist Marc‐Antoine Audet, P.Geo., Ph.D during the months of November and
December 2010.
Mineral resource estimates were derived using available historical data supplied by Horizonte
Minerals. Mineral resource estimates were based on a total of 489 drill‐holes comprising a total of
11,404 analyses and conducted in unwrinkled space using Inverse distance at Power of 2 (ID2)
interpolation process from a 3D computer block models.
Resource models were based on accurately surveyed drill‐hole data applied to a detailed digital
topographic map and integrates the mineralized horizons (limonite, transition and saprolite) from
drill data with the terrain data in the creation of 3D block models.
Procedures and results are reported in this document. The resources have been estimated and
classified according to the CIM definitions as referred to by National Instrument 43‐101 in Canada.
17.1.1 Database Integrity The resource modelling was carried out using Gemcom software (GEMS) and data stored in a GEMS
database. GEMS uses the Microsoft (MS) Jet database engine.
Drilling, surveying and assay data were managed in a comprehensive AcQuire and then using
Microsoft Access database which provides a number of built‐in data validation features. Assay
results from SGS Laboratory in Belo Horizonte were delivered electronically in a pre‐defined
Microsoft Excel format and imported directly into the AcQuire database and automatically linked
with the appropriate sample drill‐holes and sample intervals. Upon verification, the drill‐hole,
survey and assay data were extracted and merged into the GEMS database. The structure and
content of the original Teck’s database was reviewed and adapted in October 2010 by Dr. Audet.
17.1.2 Mining Factor No mining factor was applied to block models for the Mineral Resource estimation.
17.1.3 Cutoff Grades The Araguaia resource estimates have been reported using 1.0% nickel cut‐off grade.
17.1.4 Metallurgical Factors No metallurgical factor was used in the resource estimates.
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17.1.5 Resource Modelling
Mineral Resources were estimated using block estimation with Inverse Distance at the power of 2
(ID2) methodologies on 25 × 25 × 2 m blocks. A geochemical correlation matrix was defined in order
to assign a ‘GeoFacies’ to each individual sample in the database (Table 9). Bulk density values (wet
and dry) and moisture content were assigned based on facies (ref: Chap 12).
Three‐dimensional models for all sectors of the Araguaia Project were created using available
surveyed historical holes. All models integrate the concept of geological horizons (limonite,
transition and saprolite) to create a 3D block model. For each deposit, a surface geological
constraining envelop was generated using borehole data as well as information from geological
mapping.
17.1.5.1 Horizons A ‘horizon code’ system has been introduced to interpret geological succession of laterite facies,
with all lithologies categorised into five major groups (below).
• 100 – Limonite • 200 – Transition
300 ‐ Saprolite • 500 – Bedrock
600‐ Waste
These horizons represent consecutive sub‐horizontal layers.
17.1.5.2 Compositing The distribution characteristics of sample intervals were analysed, and a nominal compositing
interval of 1.0 m was found to be appropriate for all facies. The nominal sampling interval was 1.0m
with some occasions where sampling was performed on smaller interval.
A total of 31 % of all samples has a length shorter than 1 m. The compositing length was set at a
nominal 1.0 m but was adjusted to make all intervals down drill‐holes of equal length.
17.1.5.3 Block Coding The rock type block model was constructed by filling blocks of 25 × 25 × 2 m dimension between the
surface topography and horizon surfaces on a priority basis, leading to the unique assignment of
each model block with primary horizon codes. The 50% ‘in‐out’ coding rule was applied such that a
minimum volume of 50% was required to assign a horizon code to the block model prototype.
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17.1.6 Statistics and Geostatistics
17.1.6.1 Chemical Correlations Basic statistical correlation parameters were derived for several elements for the three main facies; Limonite, Transition and Saprolite (Tables 23 to 25). Strong and moderate correlations are highlighted in red and green, respectively.
17.1.6.1.1 Limonite horizon: Ni shows no strong correlations, but moderate correlations with Mg and Al
Co is strongly correlated with Mn and moderately correlated with Fe and Si
Fe is strongly correlated with Si while been moderately to weakly correlated with Mg, Cr, Ca,
K and Mn
Mg is weakly to moderately correlated with Si, Al and P
Al is strongly correlated with Ti, and moderately correlated with K and P.
17.1.6.1.2 Transition horizon: Ni is moderately correlated with Co, Fe, Si
Co has a moderate correlations with Cr, Ca, Mn, Fe and Si
Fe is moderately correlated with Si, Cr, Mg, Ca and Mn
Mg is weakly to moderately correlated with Si, Al, Ca, Mn, Ti and P
Al is moderately correlated with Ti, and weakly to moderately correlated with K and P
17.1.6.1.3 Saprolite horizon: Ni shows weak correlations with almost all elements, there are moderate correlations with
Fe and Co.
Co has a moderate correlations with Fe,Cr, Ca and Mn
Fe is moderately correlated with Mg, Cr, Ca and Mn
Mg is moderately correlated with Si, Al and Ti, while it is weakly correlated with Ca, K, P and
Mn
Al is strongly correlated with Ti, and moderately correlated with Cr.
There is a very strong correlation between P and Na
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Table 23: Correlation statistics between elements for the limonite facies at the Araguaia project. Strong and moderate correlations are highlighted in red and green, respectively
Limonite
Element Ni Co Fe Mg Si Al Cr Ca Na K P Mn Ti
Ni 1.00 0.22 0.03 0.48 ‐0.04 ‐0.42 0.16 0.05 ‐0.07 ‐0.23 ‐0.29 0.05 ‐0.27
Co 0.22 1.00 0.41 ‐0.15 ‐0.39 0.02 0.15 0.72 ‐0.03 ‐0.14 ‐0.16 0.72 ‐0.12
Fe 0.03 0.41 1.00 ‐0.34 ‐0.90 0.09 0.50 0.31 0.01 ‐0.24 0.02 0.31 ‐0.18
Mg 0.48 ‐0.15 ‐0.34 1.00 0.25 ‐0.39 ‐0.13 ‐0.19 ‐0.05 ‐0.11 ‐0.25 ‐0.19 ‐0.19
Si ‐0.04 ‐0.39 ‐0.90 0.25 1.00 ‐0.41 ‐0.59 ‐0.33 ‐0.01 0.17 ‐0.09 ‐0.33 ‐0.09
Al ‐0.42 0.02 0.09 ‐0.39 ‐0.41 1.00 0.11 0.07 0.05 0.24 0.26 0.07 0.70
Cr 0.16 0.15 0.50 ‐0.13 ‐0.59 0.11 1.00 0.06 0.01 ‐0.21 0.12 0.06 ‐0.08
Ca 0.05 0.72 0.31 ‐0.19 ‐0.33 0.07 0.06 1.00 ‐0.02 ‐0.07 ‐0.03 1.00 ‐0.06
Na ‐0.07 ‐0.03 0.01 ‐0.05 ‐0.01 0.05 0.01 ‐0.02 1.00 0.00 0.06 ‐0.02 0.08
K ‐0.23 ‐0.14 ‐0.24 ‐0.11 0.17 0.24 ‐0.21 ‐0.07 0.00 1.00 0.12 ‐0.07 0.13
P ‐0.16 ‐0.16 0.02 ‐0.25 ‐0.09 0.26 0.12 ‐0.03 0.06 0.12 1.00 ‐0.03 0.21
Mn 0.05 0.72 0.31 ‐0.19 ‐0.33 0.07 0.06 1.00 ‐0.02 ‐0.07 ‐0.03 1.00 ‐0.06
Ti ‐0.27 ‐0.12 ‐0.18 ‐0.19 ‐0.09 0.70 ‐0.08 ‐0.06 0.08 0.13 0.21 ‐0.06 1.00
Table 24: Correlation statistics between elements for the transition facies at the Araguaia project. Strong and moderate correlations are highlighted in red and green, respectively
Transition
Element Ni Co Fe Mg Si Al Cr Ca Na K P Mn Ti
Ni 1.00 0.45 0.39 ‐0.17 ‐0.41 0.05 0.28 0.10 ‐0.05 ‐0.12 ‐0.21 0.10 0.05
Co 0.45 1.00 0.47 ‐0.14 ‐0.39 0.06 0.28 0.50 ‐0.06 ‐0.07 ‐0.06 0.50 ‐0.09
Fe 0.39 0.47 1.00 ‐0.31 ‐0.68 0.08 0.54 0.27 ‐0.06 ‐0.10 0.07 0.27 ‐0.04
Mg ‐0.17 ‐0.14 ‐0.31 1.00 ‐0.26 ‐0.37 ‐0.14 ‐0.23 ‐0.02 ‐0.18 ‐0.20 ‐0.23 ‐0.21
Si ‐0.41 ‐0.39 ‐0.68 ‐0.26 1.00 ‐0.30 ‐0.38 ‐0.15 0.05 0.02 0.02 ‐0.15 ‐0.18
Al 0.05 0.06 0.08 ‐0.37 ‐0.30 1.00 ‐0.09 0.08 0.05 0.43 0.27 0.08 0.68
Cr 0.28 0.28 0.54 ‐0.14 ‐0.38 ‐0.09 1.00 0.09 ‐0.06 ‐0.11 ‐0.05 0.09 ‐0.26
Ca 0.10 0.50 0.27 ‐0.23 ‐0.15 0.08 0.09 1.00 ‐0.02 0.05 0.20 0.01
Na ‐0.05 ‐0.06 ‐0.06 ‐0.02 0.05 0.05 ‐0.06 ‐0.02 1.00 0.05 0.04 ‐0.02 0.08
K ‐0.12 ‐0.07 ‐0.10 ‐0.18 0.02 0.43 ‐0.11 0.05 0.05 1.00 0.20 0.05 0.23
P ‐0.06 ‐0.06 0.07 ‐0.20 0.02 0.27 ‐0.05 0.20 0.04 0.20 1.00 0.20 0.17
Mn 0.10 0.50 0.27 ‐0.23 ‐0.15 0.08 0.09 ‐0.02 0.05 0.20 1.00 0.01
Ti 0.05 ‐0.09 ‐0.04 ‐0.21 ‐0.18 0.68 ‐0.26 0.01 0.08 0.23 0.17 0.01 1.00
Table 25: Correlation statistics between elements for the saprolite facies at the Araguaia project. Strong and moderate correlations are highlighted in red and green, respectively
Saprolitde
Element Ni Co Fe Mg Si Al Cr Ca Na K P Mn Ti
Ni 1.00 0.43 0.25 ‐0.12 ‐0.18 0.08 0.22 0.08 ‐0.03 ‐0.11 ‐0.10 0.08 ‐0.02
Co 0.43 1.00 0.41 ‐0.15 ‐0.04 ‐0.07 0.37 0.38 ‐0.05 ‐0.07 ‐0.06 0.38 ‐0.14
Fe 0.25 0.41 1.00 ‐0.38 ‐0.14 0.04 0.49 0.24 ‐0.01 ‐0.07 0.03 0.24 0.06
Mg ‐0.12 ‐0.15 ‐0.38 1.00 ‐0.58 ‐0.58 0.01 ‐0.29 ‐0.14 ‐0.25 ‐0.28 ‐0.29 ‐0.47
Si ‐0.18 ‐0.04 ‐0.14 ‐0.58 1.00 ‐0.11 ‐0.07 0.04 0.03 0.12 0.07 0.04 ‐0.10
Al 0.08 ‐0.07 0.04 ‐0.58 ‐0.11 1.00 ‐0.34 0.19 0.14 0.29 0.28 0.19 0.79
Cr 0.22 0.37 0.49 0.01 ‐0.07 ‐0.34 1.00 0.05 ‐0.12 ‐0.17 ‐0.19 0.05 ‐0.40
Ca 0.08 0.38 0.24 ‐0.29 0.04 0.19 0.05 1.00 0.00 ‐0.02 0.06 0.99 0.13
Na ‐0.03 ‐0.05 ‐0.01 ‐0.14 0.03 0.14 ‐0.12 0.00 1.00 0.15 0.89 0.00 0.36
K ‐0.11 ‐0.07 ‐0.07 ‐0.25 0.12 0.29 ‐0.17 ‐0.02 0.15 1.00 0.19 ‐0.02 0.18
P ‐0.06 ‐0.06 0.03 ‐0.28 0.07 0.28 ‐0.19 0.06 0.89 0.19 1.00 0.06 0.52
Mn 0.08 0.38 0.24 ‐0.29 0.04 0.19 0.05 0.99 0.00 ‐0.02 0.06 1.00 0.13
Ti ‐0.02 ‐0.14 0.06 ‐0.47 ‐0.10 0.79 ‐0.40 0.13 0.36 0.18 0.52 0.13 1.00
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17.1.6.2 Characterisation Mineralisation and Grade Trends No meaningful grade trends were identified in the horizontal directions. The down‐hole directions,
however, provide evidence for important trends in some chemical components. The chemical
characterisation was made using data from drill‐holes with complete assay suites only. Figures 54 to
57 show the average composition with to depth for limonite, transition, saprolite and bedrock for
the four main sectors at the Araguaia project.
Data is presented in such a way that each horizon is consecutive and starts at a given depth, i.e., for
the sector North; limonite at 0 m, Transition at 15m, saprolite at 20m and bedrock at 45 m. Thus, the
thicknesses are artificial and refer for each horizon at the respective starting depth going down. This
method allows generalization of the chemical trend of the entire population although it must be
stressed as deeper levels (wider sections) are reached fewer sample contribute as there are fewer
samples with such lengths in the database.
17.1.6.2.1 Limonite horizon Ni Increases smoothly from 0.10% to 0.20% near surface to about 0.95% at 10 m depth,
remains constant for few meters and then declines below 0.50% at depth. It is only at the sector Pequizeiro that the Ni continue to increase down to the interface with the transition.
Fe is around 30% near surface, increase slightly few meter below surface for then gradually declines below30% at the bottom of the limonite horizon
MgO is below 3% for the entire limonite horizon. Al2O3 shows a steady decline from 17% to 18% at surface to less than 10.0% at the base of the
limonite interval. SiO2 gradually increases from 17% at surface to up to 32% at the bottom of the limonite horizon Cr2O3 behave differently for each sector, but generally remain below 3%.
17.1.6.2.2 Saprolite horizon Ni shows a clear trend with grades decreasing with depth, from 1.25% near the top of the
saprolite to below 0.7% at depth Fe decreases from around 20% at the top of the horizon to 9% at depth MgO is significantly higher than in limonite and ranges from 15% to around 30%. Behaviour is
slightly erratic but generally shows a gradual increase with depth. Al2O3 ranges from around 2.0% to around 5% SiO2 increases from 37% to 42% with depth Cr2O3 decrease gradually with depth, from around 1.3% to around 0.7% at depth
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Figure 54: Characterisation of vertical grade trend for sector North
Figure 55: Characterisation of vertical grade trend for sector Center
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Figure 56: Characterisation of vertical grade trend for sector Pequizeiro
Figure 57: Characterisation of vertical grade trend for sector South
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17.1.7 Unwrinkling and modelling It was decided that unwrinkling of the Araguaia laterite deposits was an appropriate method to improve grade connectivity and interpolation during the estimation process. Unwrinkling is a Gemcom™ term to describe a method of unfolding whereby only the Z‐coordinate of spatially located data is moved, to effect a flattening of a geological horizon. In the case of the Araguaia project, the transformation was applied to composites.
The inputs required for unwrinkling of points are: a pair of bounding surfaces defining each horizon,
a constant thickness parameter for each horizon and a mid‐level elevation to define the new
transform. After grade estimation in unwrinkled space, the estimates were back transformed to
normal coordinated space (‘rewrinkling’).
Horizon surfaces were generated in GEMS using the bottom of each horizon from each drill‐hole.
These surfaces became the basis for the triangulation of horizon surfaces used for controlling the
unwrinkling of composites.
A new block model in unwrinkled space was created using the same dimensions than the block
model in normal space, with the difference that the thickness for each horizon (limonite: code 100
series, Transition: code 200 series and saprolite: code 300 series) are constant and equivalent to the
maximal thickness encountered in normal space.
Each block of the unwrinkled block model was then independently interpolated using the Inverse
Distance at the power of 2 (ID2) methodologies in transformed space using Gemcom software. An
ellipsoid sample search parameters of 1,000 × 1,000 × 20 m was used in unwrinkled space using a
minimum of 2 samples to maximum of 12 with limitation of only one sample per hole.
Grade estimates for each block in transformed space were then exported as a single point
representing the centroid of the block. Those informed points were then back transformed to
normal space.
Blocks of the normal space 3D model were assigned the value of the nearest back‐transformed
centroid using a search ellipsoid of the size of the block in normal space (i.e., 25 × 25 × 2 m). As a
real space block may have several back‐transformed centroids, part of the information is not used.
Significant visual comparisons have been made between estimated block grades and insitu drillhole
data. All shows reasonable comparison. Despite the large drill spacing, these 3D models are
considered as good representation of the insitu data. Figures 58 and 59 show good correlation
between block model estimated grades and drillhole data.
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Figure 58:Pequizeiro 3D model versus drillhole data (PCA‐DD‐0291) showing correlation between the block model estimated grades and drillhole data
Figure 59: Baiao 3D model versus drillhole data (PCA‐DD‐0184) showing correlation between the block model estimated grades and drillhole data
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17.1.8 Classification
Dr Audet reviewed the historical data and found the historical data to be of industry standards (Ref:
Section 9). Horizonte’s geologists have, under Dr Audet supervision, re‐logged approximately 20% of
all Teck’s boreholes and despite some discrepancies with Teck’s nomenclatures, found that the
relogging fits well with the assigned facies defined by the correlation.
It is the opinion of Dr Audet that mineral resource estimated using Teck’s data qualify for been
classified as inferred under either the JORC or the NI43‐101 regulations for selected deposits.
Mineral Resource estimates for the Oito West, Vila Oito West, Pequizeiro East and Baião South areas
were not reported due to the poor drilling coverage.
17.1.9 Mineral Resources
The mineral resources for the Araguaia project are classified as Inferred Resources due to the large
drill spacing of the historical holes as well as for the intrinsic variability in thickness of facies. The
resources are shown by total and per facies (limonite, transition and saprolite) using 1.0% Ni cut‐offs
grade in Tables 26 to 30.
To the best of our knowledge the reported Araguaia mineral resources are not affected by any
known environmental, permitting, legal, title, taxation and/or socio‐economic considerations.
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Table 26: Araguaia Project: Inferred Mineral Resources as of October 2010
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Table 27: Inferred Mineral Resources for the North Sector as of October 2010
Sector Area Horizons volume Density Tonnes % Ni Metal Ni Co Fe MgO SiO2 Al2O3 Cr2O3
(,000) m3 (,000) t t % % % % % % %
North Oito Limonite 1,791 1.34 2,404 30% 27,405 1.14 0.122 37.62 2.76 18.16 10.44 2.36 Transition 2,404 1.34 3,231 41% 45,454 1.41 0.051 19.34 13.79 40.40 5.07 1.24
Saprolite 1,544 1.46 2,257 29% 27,019 1.20 0.032 12.23 21.95 42.64 4.89 0.75 5,739 1.38 7,892 99,878 1.27 0.067 22.88 12.77 34.26 6.65 1.44
Oito West Not estimated Total 7,892 99,878 1.27 0.067 22.88 12.77 34.26 6.65 1.44
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Table 28: Inferred Mineral Resources for the Center Sector as of October 2010
Sector Area Horizons volume Density Tonnes % Ni Metal Ni Co Fe MgO SiO2 Al2O3 Cr2O3
(,000) m3 (,000) t t % % % % % % %
Center Vila Oito E. Limonite 475 1.33 630 7% 7,689 1.22 0.128 29.23 3.10 36.09 6.22 1.53
Transition 2,970 1.35 3,997 44% 54,124 1.35 0.063 18.93 11.23 44.22 4.48 1.38
Saprolite 3,112 1.45 4,517 49% 54,927 1.22 0.040 11.87 23.60 43.34 3.00 0.78
Sub-total 6,557 1.39 9,144 116,739 1.28 0.056 16.15 16.78 43.22 3.87 1.09
Vila Oito Limonite 876 1.37 1,196 9% 15,102 1.26 0.159 33.95 4.15 26.08 7.33 1.99
Transition 2,539 1.36 3,463 25% 44,025 1.27 0.055 19.33 13.44 41.15 4.99 1.11
Saprolite 6,191 1.46 9,066 66% 110,082 1.21 0.035 12.49 24.54 40.87 3.64 0.77
Sub-total 9,606 1.43 13,725 169,209 1.23 0.051 16.09 19.96 39.65 4.30 0.96
Vila Oito W. Limonite Not estimated
Transition
Saprolite
Sub-total
Jacutinga Limonite 565 1.34 755 19% 8,594 1.14 0.174 36.16 2.52 25.21 7.51 2.26
Transition 520 1.35 702 18% 13,932 1.98 0.107 23.22 14.99 33.54 3.84 1.73
Saprolite 1,614 1.52 2,452 63% 34,249 1.40 0.049 12.00 21.82 46.31 2.49 0.89
Sub-total 2,699 1.45 3,909 56,775 1.45 0.084 18.68 16.87 39.94 3.70 1.31
Total 18,862 1.38 26,778 342,724 1.28 0.057 16.49 18.43 40.91 4.07 1.06
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Table 29: Inferred Mineral Resources for the Pequizeiro Sector as of October 2010
Sector Area Horizons volume Density Tonnes % Ni Metal Ni Co Fe MgO SiO2 Al2O3 Cr2O3
(,000) m3 (,000) t t % % % % % % %
Pequizeiro Piquizeiro Limonite 727 1.35 980 5% 11,658 1.19 0.143 38.02 3.94 16.50 10.15 2.68 Transition 5,709 1.37 7,797 43% 131,054 1.68 0.064 18.25 14.26 39.53 5.53 1.27
Saprolite 6,336 1.48 9,378 52% 131,540 1.40 0.036 11.87 22.90 42.05 4.42 0.94 Sub-total 12,772 1.42 18,155 274,252 1.51 0.053 16.02 18.17 39.59 5.21 1.18
Piquizeiro E Limonite not estimated
Transition
Saprolite
Sub-total
Piquizeiro W Limonite 421 1.35 568 14% 7,028 1.24 0.067 27.95 4.47 33.36 7.09 1.83
Transition 2,160 1.35 2,918 73% 40,200 1.38 0.054 17.45 10.72 46.96 4.52 1.22
Saprolite 349 1.47 514 13% 6,573 1.28 0.053 10.73 22.00 45.22 3.23 0.77 Sub-total 2,930 1.36 4,000 53,801 1.35 0.056 18.08 11.29 44.81 4.72 1.25
Piquizeiro NW Limonite 572 1.35 770 46% 8,843 1.15 0.082 35.04 5.40 18.78 9.61 2.43
Transition 504 1.34 677 40% 9,032 1.33 0.050 21.12 14.00 33.57 7.01 1.57
Saprolite 159 1.55 245 14% 2,742 1.12 0.036 14.18 23.25 39.15 3.43 1.07 Sub-total 1,235 1.37 1,692 20,618 1.22 0.062 26.45 11.42 27.65 7.67 1.89
Total
16,937 23,847 348,671 1.46 0.054 17.10 16.53 39.62 5.30 1.24
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Table 30: Inferred Mineral Resources for the South Sector as of October 2010
Sector Area Horizons volume Density Tonnes % Ni Metal Ni Co Fe MgO SiO2 Al2O3 Cr2O3
(,000) m3 (,000) t t % % % % % % %
South Baiao Limonite 4,456 1.34 5,970 33% 76,475 1.28 0.124 36.28 3.22 18.18 10.26 2.95 Transition 6,063 1.37 8,325 46% 119,369 1.43 0.055 18.54 14.01 40.31 5.52 1.42
Saprolite 2,563 1.48 3,790 21% 45,532 1.20 0.029 11.93 23.88 41.59 4.09 0.96 13,082 1.38 18,085 241,375 1.33 0.072 23.01 12.52 33.27 6.79 1.83
Baiao South Not estimated
Total 13,082 18,085 241,375 1.33 0.072 23.01 12.52 33.27 6.79 1.83
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17.1.10 Mineral Reserves
Not applicable
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18 Other Data and Information There is no further information deemed necessary to make this report understandable and not
misleading.
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19 Interpretation and Conclusions
19.1 Araguaia Project
The Teck’s field investigations undertaken between 2006 and 2008 gave a good geological
understanding of the investigated areas. The resulting geological knowledge together with quality
data obtained from Teck’s drill program in 2008 are the basis for the Araguaia Nickel Project
preliminary mineral resources estimates as reported in this technical report.
Teck previous geological mapping conducted along with the drilling campaigns has been focused on
determining the limits of laterite developments. Using this input the 3D modelling of limonite,
transition and saprolite horizons are considered to provide a fair and reasonable representation of
the geology of the deposits.
Core re‐logging has shown good correspondence with previous Teck descriptions as well as the
chemical discrimination for the vast majority of drill‐cores, with uncertainty confined in some cases
to the distinction of transition and saprolite. This is not unexpected and is considered fully
acceptable. The density of data has been found to be adequate for designation of the Araguaia’s
Inferred Mineral Resources.
The mineral resource estimate of Araguaia Nickel Project laterite deposits was based on 489 core
boreholes for a total of 11,404 meters and includes targets within the North, Centre, Pequizeiro and
South Sectors. The model integrates the concept of geological horizons (limonite, transition and
saprolite) to create a 3D block model. Estimation was conducted in unwrinkled space using Inverse
Distance at Power of 2 (ID2) using Gemcom software. Mineral resources for the project are reported
using 1.0% Ni cut‐off values. The Inferred Mineral Resources estimated are reported in Table 31.
Table 31: Inferred Mineral Resource at 1.0% Ni cut‐off grade. † DBD = Dry bulk density
DBD† Tonnage Nickel Ni Co Fe MgO SiO2 Al2O3 Cr2O3
t/m3 (,000) t tonnes % % % % % % %
Araguaia laterite deposits
Limonite 1.34 13,273 162,793 1.23 0.13 35.67 3.41 20.70 9.50 2.55
Transition 1.36 31,110 457,190 1.47 0.06 18.75 13.34 41.04 5.18 1.32
Saprolite 1.47 32,219 412,664 1.28 0.04 12.09 23.42 42.24 3.82 0.85
Total 76,604 1,032,647 1.35 0.06 18.88 15.86 38.02 5.36 1.34
The qualified person, consulting geologist Marc‐Antoine Audet, P.Geo., Ph.D. concludes that the
procedures followed during exploration drilling, sampling, assaying, bulk density determination and
QA/QC, as well as data management and modelling to determining the mineral resources of the
deposits have been satisfactory and are not misleading. Horizonte Mineral’s Araguaia Nickel Project
resource database meets industry standards and is compatible with the JORC and CIM codes for
public reporting.
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19.2 Lontra Project
The Lontra licences contain a substantial area of ultramafic rocks; which are the principal lithology
from which the nickel mineralisation is derived. Several of these target areas have the potential to
hold significant resources of nickel, but WAI considers that considerable exploration effort and
budget will be required before the magnitude of such resources can be quantified (Owen et al,
2010).
WAI considers that the results of the 2008 drilling programme are very encouraging and
demonstrate that the near surface laterite developments at the Northern and Raimundo zones could
potentially contain a sizeable nickel resource. The targets remain open, and extensions and
subsidiary targets at both sites are as yet untested (Owen et al, 2010).
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20 Recommendations
Further evaluation is recommended to complete a preliminary assessment of the Araguaia Nickel
Project.
Current planned and budgeted (£1.5M {C$2.3M}) work in progress on the Araguaia Nickel Project
includes:
An 8000m diamond drilling programme designed to reduce the drill spacing on the Pequizeiro
West, Pequizeiro and Baião targets to 141m x 141m and then on the Pequizeiro and Baião
targets to 100m x 100m.
A NI 43‐101 compliant mineral resource estimate on the Pequizeiro and Baião targets based on
100m x 100m diamond drilling.
Compilation of all the historical exploration data over the entire project and reconnaissance
exploration and mapping over priority targets.
Mineralogical test program on selected samples of the major mineralised facies including optical
microscopy, quantitative evaluation of materials using scanning electron microscopy (QEMSCAN)
analysis, X‐ray diffraction (XRD) analysis and electron microprobe (EMP) analysis
It is recommended that further evaluation of the Araguaia Nickel Project potential will include:
Environmental baseline study
Preliminary metallurgical process studies to identify the optimum processing route to maximise
the economic return.
Infill drilling in the Lontra Sector suitable for first mineral resource estimation.
Reduce drill spacing on all significant targets to 141m x 141m prior to selection of targets for
additional 100m x 100m drilling.
Infill drilling on the Pequizeiro and Baião targets if closer spacing than 100m x 100m is required
to raise the resource estimations to an Indicated Mineral Resource category.
Reconnaissance drilling on selected targets from reconnaissance exploration and mapping.
Scoping Study to determine order of magnitude economic parameters
Airborne laser topographical survey (2m contours)
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21 References M. Bennell; January 2010; Technical Report on the Araguaia Nickel Exploration Project, Para State, Brazil, NI43‐101 report by Lara Exploration Limited R. Bisneto et al; December 2006; Relatorio Anual De Pesquisa, Projeto 128500 Araguaia/PA, Exploration report by Teck Cominco Limited M L Owen et al; July 2010; Competent Person’s Report on the Assets of Horizonte Minerals Plc, Brazil, Independent Competent Persons Report by Wardell Armstrong International Ltd.
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22 Date and Signatures
The effective date of this Technical Report, entitled “Geology and Mineral Resources of the Araguaia
Nickel Project, Brazil, NI 43‐101 Technical Report” is 15 May, 2011.
15 May, 2011 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ James Hogg, MSc, MAIG Date.
15 May, 2011 ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ Owen Milalop, MCSM, BSc, CEng, MIMMM Date.
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23 Certificate and Consent of CoAuthors
Marc‐Antoine Audet, P. Geo. Ph.D.
Geological Consultant
787 Powell
Town of Mont‐Royal
PQ
Canada
Tel: (514) 344‐1056
Fax: (514) 344‐1056
marc‐[email protected]
CERTIFICATE OF AUTHOR
I, Marc‐Antoine Audet, P. Geo., of 787 Powell, Town of Mont‐Royal, Quebec, Canada hereby certify that:
I am currently self‐employed as a geological consultant.
I graduated with a degree in Geology from the University Laval of Quebec City in 1986. In addition, I
have obtained a Master of Science in Geology, 1995 from the Witwatersrand University,
Johannesburg, RSA and a Ph.D in 2008 from Université du Québec à Montréal (UQAM) and from
Université de la Nouvelle‐Calédonie (UNC).
I am a member of the Association of Professional Geoscientists of Ontario (APGO), member 612 and
l’Ordre des Géoloques du Québec (OGQ), member 1341.
1. I have worked as a geologist for a total of 24 years since my graduation from university.
2. I have read the definition of “qualified person” set out in National Instrument 43‐101 (“NI 43‐101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43‐101) and past relevant work experience, I fulfill with requirements to be a “qualified person” for the purposes of NI 43‐101.
3. I am responsible for the preparation of sections 1, 2, 8, 9, 10.3, 12.1.4, 13, 14, 16, 17, 18, 19.1, 20, 22 and 23 of the technical report relating to the 3D modelling and mineral resource estimations of the report titled :
Geology and Mineral Resources of the Araguaia Nickel Project, Brazil, NI 43‐101 Technical Report. Dated May 15, 2011.
4. I had no prior involvement with the property that is the subject of the Technical Report.
5. I visited the properties that are the subject of the Technical Report for the first time between the 13th and the 20th October 2010.
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6. I am independent of Horizonte Minerals Inc. applying all of the tests in section 1.4 of NI 43‐101.
7. I have read the Instrument and Form 43‐101F1, and the Technical Report has been prepared in compliance with that instrument and form.
8. As of the date of hereof, to the best of the my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.
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James Nicholas Hogg, M.Sc, MAIG
Consulting Geologist ‐ Micromine Consulting Services
Unit 104, 27‐31 Clerkenwell Workshops, London, EC1R 0AT
Tel: +44 (0) 203 176 0081
Fax: +44 (0) 203 176 0082
CERTIFICATE OF AUTHOR
I, James Nicholas Hogg, M.Sc, MAIG, of 104 Clerkenwell Close, London, EC1R 0AT hereby certify that:
I am currently employed as a Micromine Consulting Services geological consultant with Micromine
Limited.
I graduated with a degree in Geology from Kingston University, London in 1993. In addition, I have
obtained a Master of Science in Mineral Exploration (merit), in 1996 from the University of Leicester,
Leicester, United Kingdom.
I am a member of the Australian Institute of Geoscientists, Australia.
1. I have worked as a geologist for a total of 15 years since my graduation from university.
2. I have read the definition of “qualified person” set out in National Instrument 43‐101 (“NI 43‐101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43‐101) and past relevant work experience, I fulfill with requirements to be a “qualified person” for the purposes of NI 43‐101.
3. I am responsible via desk study report research and process verification for the preparation of sections 1, 2‐7, 10‐12 15, 18, 19, 20, 21, 22 and 23 of the technical report titled:
Geology and Mineral Resources of the Araguaia Nickel Project, Brazil, NI 43‐101 Technical Report. Dated May 15, 2011.
4. I had no prior involvement with the property that is the subject of the Technical Report.
5. I have not visited the properties that are the subject of the Technical Report.
6. I am independent of Horizonte Minerals Inc. applying all of the tests in section 1.4 of NI 43‐101.
7. I have read the Instrument and Form 43‐101F1, and the Technical Report has been prepared in compliance with that instrument and form.
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8. As of the date of hereof, to the best of the my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.
Dated this 15 day of May, 2011.
James Nicholas Hogg, M.Sc, MAIG.
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Owen Daniel Mihalop, CEng, MIMMM
Technical Director – Wardell Armstrong International
Wheal Jane, Baldhu, Truro, TR3 6EH
Tel: +44 (0) 1872 560 738
Fax: +44 (0) 1872 561 079
omihalop@wardell‐armstrong.com
CERTIFICATE OF AUTHOR
I, Owen Daniel Mihalop, CEng, MIMMM, of Wheal Jane, Baldhu, Truro, TR3 6EH hereby certify that:
I am currently employed as Technical Director of Mining with Wardell Armstrong International
Limited.
I graduated with a degree in Mining and Exploration Geology from the University of Wales, Cardiff in
1995. In addition, I have obtained a Master of Science in Mining Engineering, in 2001 from the
University of Exeter, Camborne School of Mines, United Kingdom.
I am a professional member of the Institute of Materials, Minerals and Mining and a registered
Chartered Engineer of the Engineering Council, UK.
1. I have worked as a geologist and mining engineer for a total of 15 years since my graduation from university.
2. I have read the definition of “qualified person” set out in National Instrument 43‐101 (“NI 43‐101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43‐101) and past relevant work experience, I fulfil with requirements to be a “qualified person” for the purposes of NI 43‐101.
3. I am jointly responsible via previous reports that I have written for the preparation of sections 1,2,3,5,6, 10,11, 18, 19.2, 20, 22 and 23 of the technical report entitled:
Geology and Mineral Resources of the Araguaia Nickel Project, Brazil, NI 43‐101 Technical Report. Dated May 15, 2011.
4. Prior to this Technical Report I was a co‐author of a CPR concerning these properties for a re‐admission document to the Alternative Investment Market of the LSE.
5. I visited the properties that are the subject of the Technical Report between 20th and 25th of January 2010.
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6. I am independent of Horizonte Minerals Inc. applying all of the tests in section 1.4 of NI 43‐101.
7. I have read the Instrument and Form 43‐101F1, and the Technical Report has been prepared in compliance with that instrument and form.
8. As of the date of hereof, to the best of the my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the technical report not misleading.
Dated this 15th day of May, 2011.
Owen Daniel Mihalop, CEng, MIMMM