Horizonte Minerals plc / Index: AIM / Epic: HMZ / Sector: Mining

 

30 April 2007

Horizonte Minerals plc (‘Horizonte’ or ‘the Company’)

Preliminary Results

 

Horizonte Minerals plc, the AIM listed exploration and development company focused on Brazil and Peru, is pleased to announce its results for the year ended 31 December 2006.

 

Overview

 

·        Admitted to AIM in May 2006, raising £2.3 million to focus on the discovery and development of world-class precious and base metal projects in South America.

 

·        Multiple new gold targets defined in Brazil.

 

·        Proven model of identifying quality early stage projects before securing a partner to assume high financial exposure of development and production.

 

·        Defined large scale mineralised gold system at the Tangara project in the Carajas Mineral District, Brazil - drilling returned:

36.25 metres averaging 2.54 g/t Au from 36.25 metres downhole, including

6.75 metres grading 9.8 g/t Au and a second interval of 2 metres grading 6.0 g/t Au

 

·        Defined high grade vein and replacement style mineralisation at the El Aguila silver-lead-zinc project in the Cerro de Pasco District Peru – the 11 holes drilled returned economic intersections and further targets have been defined.

 

·        Acquired 4,660 hectare Crixas nickel project on the tightly held Archean aged Crixas greenstone belt - multiple nickel-copper anomalies defined.

 

·        Acquired 25,556 hectare land package located 80 km south of a major nickel deposit owned by Xstrata - nickel targets defined for follow-up.

 

·        Pipeline of projects being developed by highly experienced operational team.

 

 

Chairman’s Statement

 

It gives me great pleasure to address you in what is Horizonte’s maiden annual report to shareholders. The Company, which listed in May 2006, has progressed significantly in a short time and has achieved its key objectives as set out in the AIM listing document.

 

Importantly, we completed the successful critical first pass drilling at the flagship Tangara and El Aguila projects, which contributed considerably to our understanding of the mineral systems and increased their value as the drilling revealed economic grades and demonstrated size potential of the systems.

 

New targets have also been defined within the Tangara project area, notably at Pampeana, where detailed work around the Gerson Zone indicated the potential for continuity of the mineralisation defined in the discovery drill hole 4, which returned 36.25 metres averaging 2.54 g/t Au. At Pampeana, located 10 kilometres south-east of the Malvinas target, we also identified high-grade quartz veins gold mineralisation e.g. 35.62 g/t Au. Horizonte is developing these projects to a point whereby, in line with the Company’s strategy, it will aim to sign a partner keen to be involved in early stage quality projects with the potential for major gold +/- copper deposits. An example of this was our joint venture with Troy Resources on the Goias Velho project.

 

At El Aguila in Peru, we intersected excellent grades and widths in the Pacos Zone in the first pass drilling e.g. HM-DDH-3 11.08 m grading 5.53 oz/t Ag, 3.06% Pb and 2.78% Zn from 28.97m down hole. Subsequent mapping, sampling and ground geophysics have identified further potential for silver-zinc-lead mineralisation away from the Pacos Hill zone. The results from the Zona Sur are tantalising, with strong coincidence of mineralisation, high grade geochemistry and ground geophysics. The average grade of seven channel samples taken along 230 metres extent of the Veta Marlene returned 0.24g/t Au, 10.24 oz/t Ag, 4% Pb and 5.6% Zn. The early results have attracted considerable attention from mining groups, especially given El Aguila’s strategic location in one of the world’s premier poly-metallic mineral belts. I am sure it will be only a matter of time before Horizonte will have a significant partner on this project.

 

Horizonte has been quick to add to its original portfolio after listing – Crixas and Lontra are two such projects. The Lontra project is an example of the ability of your Company to acquire ground in emerging mineral belts. The presence of economic grades in samples e.g. 1.59% Ni attests to the potential of this ground holding.

 

Your Company is continually reviewing many submittals that our local manager, Antonio Valerio, is able to source. In addition, Horizonte’s in-house generative programme is looking at a number of new areas with a view to gaining a significant early-entry competitive advantage.

 

I cannot stress enough, especially after visits to the Vancouver Round-Up conference and the PDAC in Toronto, the critical need for new projects and more especially new generative projects within the exploration and mining sector. A considerable amount of funds raised recently have been put into “dusted off” projects, new to the investor but not to the mining industry. The concept of adding value to such projects is finite, as few go on to become productive mining projects.

 

The only way to add real value in the exploration and development (‘E&D’) sector is by the discovery of new mineralisation, which has the potential in terms of scale, grade, mineability, political risk and environmental risk, etc to be a new mine. This is the principle aim of Horizonte.

 

At each point in an E&D programme the management and board must assess the ongoing results with this in mind. It is crucial that investors understand the difference between measured, indicated and inferred resources and appreciate that these may not have any economic value in certain circumstances. The desperation of some companies to show value by publishing inferred resource 43-101 or JORC compliant is unacceptable. Inferred resources are barely proven resources in the ground – the lowest level of certainty and confidence. Yet we see companies undertaking “scoping studies” on inferred resources, which really in terms of value are worthless.

 

Mining is however not only about projects but also people. The availability and retention of quality experienced personnel is a major issue in the exploration and mining industry. I believe Horizonte is blessed with professional, experienced management who are incentivised through their equity holding in the Company. The technical team supported by the board is well placed for success and I believe has already shown the ability to discover and add value from a low cost base and will continue to do so to enhance shareholder value.

 

2007 will be a challenging year and one I am sure will witness significant developments in Horizonte. Finally I would like to take this opportunity to extend my thanks to the board and to you as shareholders for your continuing support.

 

 

David J. Hall

Chairman

30 April 2007

 

 

Consolidated Income Statement

For the year ended 31 December 2006

		Year ended 31 December 2006		Period 14 June 2005 – 31 December 2005
Revenue		-		-
Cost of Sales		-		-
Gross Profit		-		-
Administration Expenses		(240,475)		(73,897)
Gain/(Loss) on Foreign Exchange		(6,580)		-
Loss from Operations		(247,055)		(73,897)
Finance Income		58,999		2,960
Loss before Taxation		(188,056)		(70,937)
Taxation		-		-
Retained Loss for the Year attributable to Equity Shareholders		(188,056)		(70,937)
Loss per Share (pence) – Basic and Diluted		(0.76)		(0.41)

 

 

 

Consolidated Balance Sheet

As at 31 December 2006

		31 December 2006		31 December 2005
ASSETS
Non-Current Assets
Intangible Assets		1,445,195		152,770
Property, Plant & Equipment		972		-
		1,446,167		152,770
Current Assets
Trade and Other Receivables		2,793		467
Cash and Cash Equivalents		1,427,044		499,195
		1,429,837		499,662
		2,876,004		652,432
EQUITY AND LIABILITIES
Equity
Issued Capital		295,077		218,410
Share Premium		3,793,147		1,965,690
Other Reserves		(1,048,100)		(1,548,100)
Retained Earnings		(255,687)		(70,937)
Total Equity		2,784,437		565,063
Current Liabilities
Borrowings		-		55,580
Trade and Other Payables		91,567		31,789
Total Liabilities		91,567		87,369
Total Equity and Liabilities		2,876,004		652,432

 

 

 

 

 

 

Consolidated Statement of Changes in Equity

 

	Share Capital	Share Premium	Retained Reserve	Merger Reserve	Total
Balance on Incorporation	2	-	-	-	2
Issue of Ordinary Shares	118,408	570,690	-	-	689,098
Issue Costs	-	(53,100)	-	-	(53,100)
Merger Reserve	100,000	1,448,411	-	(1,548,100)	-
Loss for the Period	-	-	(70,937)	-	(70,937)
As at 31 December 2005 and 1 January 2006	218,410	(1,965,690)	(70,937)	(1,548,100)	565,063
Issue of Ordinary Shares	76,667	2,223,333	-	-	2,300,000
Issuance Costs	-	(395,876)	-	-	(395,876)
Movement on Merger Reserve	-	-	-	500,000	500,000
Share options -value of employee services	-	-	3,306	-	3,306
Loss for the period	-	-	(188,056)	-	(188,056)
As at 31 December 2006	295,077	3,793,147	(255,687)	(1,048,100)	2,784,437

 

 

 

 

Consolidated Cash Flow Statement

For year ended 31 December 2006

Consolidated Cash flow Statement		Year ended 31 December 2006		Period 14-June 2005 – 31 December 2005
Cash flows from operating activities
Loss before taxation		(188,056)		(70,937)
Interest income		(58,999)		(2,960)
Employee share options		3,306		-
Depreciation		254		-
Operating loss before changes in working capital		(243,495)		(73,897)
Increase in trade and other receivables		(2,326)		(467)
Increase in trade and other payables		59,778		31,789
Net cash outflow from operating activities		(186,043)		(42,575)
Cashflows from investing activities
Purchase of intangible assets		(792,425)		(152,770)
Purchase of property, plant and equipment		(1,226)		-
Interest received		58,999		2,960
Net cash used in investing activities		(734,652)		(149,810)
Cash flows from financing activities
Proceeds from issue of ordinary shares		1,904,124		636,000
Change in short term borrowings		(55,580)		55,580
Net cash inflow from financing activities		1,848,544		691,580
Net increase in cash and cash equivalents		927,849		499,195
Cash and cash equivalents at beginning of year		499,195		-
Cash and cash equivalent at end of the year		1,427,044		499,195
Consisting of:
Group cash		1,427,044		499,195
Note:
During the period £500,000 of intangible assets were purchased by the issue of 10 million shares.

 

 

* * ENDS * *

 

For further information visit www.horizonteminerals.com or contact:

 

Jeremy Martin/David Hall                   Horizonte Minerals plc                        Tel: 020 7495 5446

David Paxton                                        Hichens Harrison                                 Tel: 020 7382 7785

Hugo de Salis                                       St Brides Media & Finance Ltd         Tel: 020 7242 4477

John Frain/Fergal Meegan                 Davy                                                      Tel: +353 1 679 6363

 

Notes to Editors: 

Horizonte Minerals Plc is an AIM listed mineral resources exploration group focused on the discovery, appraisal and development of gold and base metal deposits in Brazil and Peru.  The Company has two gold exploration projects in Brazil, and one silver-zinc-lead project in Peru. The two Brazilian gold projects, Tangara and Falcao, are located to the south of the highly prospective Carajas Mineral Province. Both projects cover an area of approximately 300 sq km and are centred over greenstone belts, with known gold mineralisation. The scale of these project areas, the overall aerial extent of the mineralised system and the high density and magnitude of related gold anomalies (identified in river sediments, surface soils and rocks), indicate the potential for multiple deposit discoveries.

 

The silver-zinc-lead project is located in the historic mining district of Cerro de Pasco in Central Peru. Sampling and limited historic drilling on this project has demonstrated the high grade potential of this project. The Company has a joint venture with Australian gold producer Troy Resources NL’s 70% owned local subsidiary Sertao Mineracao Ltda to advance its Goias Velho gold exploration project in Brazil.

 

 

 

 

 

Isabel Crossley

St Brides Media & Finance Ltd

Aldermary House, 10-15 Queen Street

London EC4N 1TX

Tel: 020 7242 4477

Fax: 020 7651 8689

Email: isabel@sbmf.co.uk