Horizonte Minerals (LON:HZM), the AIM quoted exploration and development company focused on Brazil, has signed a US$4.5m earn in agreement on its 100% owned Falcao gold project in the Carajas Mineral Province of northern Brazil, with major gold producer and exploration partner, £AGD.

Under the terms of the deal, AngloGold can earn into 51% of the Falcao project by spending US$4.5m on exploration and development over three years, with a first year cash commitment of US$0.9m. A fast track drill programme is now set to begin in order to test the resource potential of the project. Upon earning into 51%, the Falcao project will convert into a joint venture and AngloGold may elect to earn an additional 19% to increase its participating share to 70% by funding a pre-feasibility study.

Horizonte’s chief executive, Jeremy Martin said: “This is yet another exciting transaction for Horizonte. The Falcao project is a significant gold anomaly in the southern part of the Carajas Province defined by previous exploration work carried out on the property. There are multiple gold intersections from wide spaced historic drilling undertaken by the previous operator and this data supports the model that Falcao has the potential to host a major gold deposit. The earn-in agreement with AngloGold will allow a fast track drill programme to test the resource potential of the project.”

Mr Martin said the deal provided Horizonte with two active partnerships with the world's third largest gold producer: a Strategic Alliance signed in September 2009 focused on the discovery of new gold targets as part of a regional exploration programme; and this new earn in agreement for Falcao with a US$4.5m exploration budget.

Horizonte rejoined the AIM market earlier this month following its company's acquisition of Teck Cominco Brasil from Teck Resources. Teck Cominco Brasil owns 100% of the advanced Araguaia nickel project in the Carajás mineral district of northern Brazil. Horizonte believe the combination of Teck's Araguaia project with its own Lontra project has the potential for a 100 million tonne resource with grades comparable to other world class projects in Brazil.

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