Horizonte Minerals (LON:HZM), the AIM quoted exploration and development company working in Brazil, has begun drilling work on its 100% owned Araguaia Nickel Project, which lies to the south of the Carajas Mineral District in northern Brazil. In an effort to produce a maiden Inferred Resource by the first half of 2011, the company has signed an 8,000m drill contract which will initially see three new Sonda Drill SD-4 diamond drill rigs brought to the site with an additional drill rig due to arrive by the end of October 2010. An evaluation is also underway to define further high grade nickel targets.

Drilling at Araguaia follows a deal in August that saw Horizonte buy the project from Canadian mining group Teck Resources in a move that saw Teck secure a 50% stake in Horizonte. The idea behind the plan is to combine the Araguaia project with Horizonte's Lontra project in a move that the two sides believe has the potential for a 100m tonne resource with grades comparable to other world class projects in Brazil.

Horizonte’s chief executive, Jeremy Martin, said: “This is a very exciting time for the company, as we commence the resource drilling programme on the Araguaia Project. We have an excellent team on the ground to handle the four drill rig programme and this initial 8,000m will allow us to deliver a maiden Inferred Resource in H1 2011. In tandem with the drilling, we will have other teams exploring the untested targets in the extensive land holding that makes up the Araguaia Project, with the aim of adding additional higher grade tonnes to the project.”

The Araguaia poject comprises 11 licences in the Araguaia mobile belt approximately 200km southeast of the Carajas mineral province and 80km to the south of the Serra do Tapa nickel laterite deposit, which is run by Xstrata Plc (LON:XTA) . The current drill programme assumes that to achieve the requirements for an Inferred Resource, a reduction in the drill spacing from the current 200m spacing will be required. The Phase 1 programme, comprising an estimated 8,000m, will reduce the drill spacing over the key targets to include Pequizerio and Baião from the current 200m grids to 141m grids. The programme is designed to meet…

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