Horizonte Minerals (LON:HZM) , the AIM quoted mineral exploration and development company operating in Brazil, reported this morning that a 7,350 metre Phase 1 drilling programme was underway at its 100% owned Araguaia Nickel Project in the Carajas Mineral District. Thirty diamond drill holes have been completed to date and work has already been completed on the Pequizeiro West target. Three drill rigs are currently on site and a fourth is due to be operational in January 2011.

Horizonte said it planned to accelerate the rate of drilling and intended to contract an additional drill company to get further drill rigs on site by the first quarter of 2011. An initial NI 43-101 compliant resource estimate is still expected at Araguaia in the same timeframe. The company said a regional exploration programme was also underway to define additional drill targets that display the potential to increase the overall project resource inventory

Drilling at Araguaia follows a deal in August this year that saw Horizonte buy the project from Canadian mining group Teck Resources in return for 50% of its shares. The idea behind the plan was to combine the Araguaia project with Horizonte's Lontra project in an effort to create a 100m tonne resource with grades comparable to other world class projects in Brazil. Click here to read a Stockopedia interview with Horizonte’s chief executive, Jeremy Martin.

Commenting on today’s update, Mr Martin said: “Exploration is progressing at pace at Araguaia with drilling completed at the Pequizeiro West target. Drilling to date includes intercepts of up to 40m in the laterite profile and we look forward to receiving the assay results of these in the next few weeks. A full review of the historic and new project data by external consultant Dr Marc-Antoine Audet will enable us to produce the maiden NI 43-101-compliant resource early next year. In addition metallurgical test work will commence in January to establish the most suitable process route for the project.”

Araguaia comprises nine licences in the Araguaia mobile belt approximately 200km southeast of the Carajas mineral province and 80km to the south of the Xstrata Plc (LON:XTA) operated Serra do Tapa nickel laterite deposit (60Mt grading 1.63% nickel). The Phase 1 drilling programme, which is currently underway and comprises…

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