MM: For investors new to the Horizonte Minerals story can you summarise the background to the company?

JM: Back in 2006, when we launched Horizonte on AiM, it was apparent that there was a shortage of good late stage projects positioned for the major miners to acquire in order to replenish their resources and reserves. Another mismatch in the industry was that even mining giants had more early stage projects than their skilled-manpower and cashflow could handle. We had no doubt that this presented a prospective opportunity in the market for a strong and knowledgeable management team. So we set about forming one to work in a part of the world we knew well, Brazil. We also have excellent relations with two committed major mining partners, namely Teck Resources and Anglo Gold Ashanti, who are key to what we are building.

MM: What are the company’s key strategic objectives?

JM: The company is focussed on creating value by advancing our exploration projects in tandem with joint ventures with major mining companies, providing mid-term cash flow.

Nickel

MM: Can you summarise why you consider Brazil to be a good environment for exploration and development and why nickel is a viable in-demand sector?

JM: Brazil is a country with huge under-explored areas, even though its annual mineral production now totals US$35 billion. Conditions there are very favourable for foreign miners, with a government which is pro foreign direct investment and there is an established and highly supportive mining code. Operating on the ground is easy, with established infrastructure.

Nickel attracted us as demand is robust and is expected to continue to be so as it is used mainly in the stainless steel industry. Asia is overwhelmingly the major consumer with Chinese demand forecast to rise by 12 percent a year for the next few years.

MM: You recently updated your nickel resource at the Araguaia nickel project to 100.2 million tonnes inferred and indicated. Can you tell us why this resource update was important in terms of tonnage achieved and underlying nickel grade?

JM: There are two key factors here, by increasing the overall tonnes to 100Mt that puts the project in the upper quartile of global assets in terms of size and grade and it then sits in a small peer group of assets that are not owned or being developed by Major mining companies.

MM: How well equipped, from a knowledge and finance perspective, is Horizonte Minerals, to follow a ‘pathway to value’ for Araguaia?

JM: With a strong cash position of £5 million we are well placed to meet our commitments in 2012 and as we work towards completing our prefeasibility study at Araguaia in 2013. We are also looking to further consolidate our land position around Araguaia with the aim of increasing our resource potential and maximising our exposure in a country with significant nickel production, as demonstrated by Vale and Anglo American’s new nickel mines in the region.

MM: What investment in social and environmental programmes has the company committed to, to ensure the protection of the local community and sharing of project benefits?

JM: We believe that it is critical to undertake all our exploration activities in a manner that minimises or eliminates negative environmental impacts. Horizonte recognises that there is a vital social dimension to all exploration activity and we are fortunate to maintain excellent relationships with communities and landholders located close to, or on, our projects. Horizonte adheres to a good neighbour policy of open community consultation and to sourcing, where possible, materials and labour services from local communities. All of our environmental and social work is undertaken to IFC standards.

MM: Can you tell us the strategic significance of the recently acquired Vila Oito and Floresta nickel laterite projects and how these will be integrated into the wider Araguaia project plans?

JM: Both offer highly prospective additional ground augmenting the value of Araguaia. We bought 100% of the Vila Oito and Floresta nickel laterite projects from Lara Exploration for 8.5 million new Horizonte shares, which equated to around CA$2m at the time. The Vila Oito target is the western extension of one of the principal target areas on the Araguaia Project, from which we see immediate resource targets to follow up. The Floresta project is separate and lies just to the north of Vila Oito and has a well-defined geochemical anomaly that also requires follow up work.

Gold

MM: Can you summarise the range of gold exploration activities and working partnerships you have and how you anticipate these will move forward during 2012?

JM: Our gold activities are being advanced principally through the Falcao JV whereby AngloGold can earn in to 51% of our Falcao gold project just north of Araguaia by expending US$4.5 million over three years, with the right to earn a further 19% by taking the project to the Pre-feasibility Study stage. An initial drilling campaign at the Falcoa project generated encouraging results and a second phase is being planned – 2012’s budget is US$1.6million.

MM: Recognising the growing significance of nickel at Araguaia how will the company ensure that the gold operations receive a sufficient allocation of finance and management time, and ensure the value created is properly recognised by the Market?

JM: The fact that the exploration cost for our gold operations are covered by our joint venture partner means that we have support and finance in place and can add further value with minimal capital risk exposure and a reasonable application of management time. As and when further management resources are required for the gold activities, we will recruit externally as required.

ENDS

Disclaimer: MiningMaven Principles hold shares in Horizonte Minerals