Risk warning: The value of investments and derived income can fall. Investors may get back less than they invested.

Office of National Statistics Data Release : UK grants 92 Investor Visas

As expected, today’s release of the latest ONS figures for Q4 2018 applications for the Tier 1 Investor Visa remains high. This comes as no surprise as on the 5th of December, the Home Office announced that it would ‘halt’ applications which led to many intended investors to apply in those 24 hours in order to have their application fall within the current rules.

The Home Office then later announced that it would not halt the program, however at a later stage it would reform the program. Therefore, we expect the high number of applicants to continue as more and more people make a decision to move to the UK whilst they know what the rules are.

“While in discussion with clients they explain that the uncertainty of future rules is something that worries them, especially with regards to which investments are permitted”, said Rafael Steinmetz Leffa, Head of China Desk at Shard Capital Investor Visa. “This concern is mostly referring to direct investments in the UK government, in the form of Government Bonds which is the preferred financial instrument for the vast majority of this type of investor.”

Whilst we note that the overall number of applications is slightly lower than the third quarter of 2018, it is worth highlighting that 50% of applications in the fourth quarter were from China and its SARs (Special Administrative Regions).  We also saw a rise in applications from countries in the Middle East.

2018 also saw the largest number of applicants since the Home Office increased the investment threshold from £1mil to £2mil in November 2014. This shows that investors remain bullish about the UK’s status as a hub for education, finance and investments overall.

If you would like more information on Shard Capital Investor Visa or the UK Tier 1 (Investor) Visa, please contact us.

Immotion Group Plc – Distribution Partner for MENA appointed

Immotion Group plc, the UK-based immersive virtual reality (“VR”) ‘Out of Home’ entertainment business, is pleased to announce that it has appointed Dubai-based Warehouse of Games as its exclusive distribution partner for the Middle East and North African territories (“MENA”).


Warehouse of Games will sell, distribute and maintain the Immotion Group range of VR Cinematic Platforms to its extensive MENA client base. The agreement is in line with the Company’s strategy to become a leading participant in the ‘out of home’ VR experience market. The appointment of a distribution partner provides a low-cost route to establish the Immotion Group brand across this rapidly growing region.  The tourism industry in the MENA region is expected to reach over US$365 billion by 2027 (2017: US$224 billion), primarily driven by the leisure and religious tourism sectors.  Leisure travel spending is expected to grow by 4.3% pa to US$202.6 billion in 2028*.


As part of the agreement, Warehouse of Games will deal with the on the ground delivery, installation and repairs of Immotion Group’s ‘out of home’ VR experiences, in order to fulfil the recent contract the Company secured with Al Hokair (detailed in the announcements dated 8 November 2018 and 5 February 2019). Al Hokair owns over 90 Family Entertainment Centres across MENA.  Immotion Group’s first centre will be installed in Abu Dhabi in March 2019 at the Sparkys Family Entertainment Centre. Warehouse of Games will use its strong local knowledge to identify additional high footfall sites to continue its expansion.


Martin Higginson, CEO of Immotion Group, said: “The partnership with Warehouse of Games will strengthen our position in the Middle East and North Africa. With leisure spending in this region predicted to grow rapidly in the next 10 years, we anticipate significant demand for out of home VR centres in this area. With this agreement now in place, we can scale our efforts in this region at low cost with confidence in the supply and maintenance chain.”


CEO and Founder of Warehouse of Games, Mr. Nabil Kassim said, “We are pleased to be the exclusive distributor of Immotion Group exciting VR experiences in the Middle East & North Africa. This collaboration is part of Warehouse of Games’ commitment to expand its global portfolio in the amusement industry.”








Immotion Group

Martin Higginson

Tel: +44 (0) 161 235 8505

WH Ireland Limited

(Nomad and Joint Broker)

Adrian Hadden

Jessica Cave


Tel: +44 (0) 207 220 1666

Shard Capital Partners LLP

(Joint Broker)

Damon Heath

Erik Woolgar

Tel: +44 (0) 20 7186 9900

Newgate Communications (Financial PR)

Elisabeth Cowell

Robin Tozer

Tom Carnegie


Tel: +44 (0) 20 3757 6880




About Immotion Group:

Immotion Group, co-founded by Martin Higginson and David Marks in 2017, generates revenues through the delivery of high quality “state of the art” VR experiences, combined with cutting edge motion platforms to consumers at an affordable price point through a range of routes:

·    Sales – sale of VR Motion Platforms to Leisure and Entertainment operators provide the opportunity for the operator to drive substantial ancillary revenues.

·    Concession partners – currently installed at a range of outlets including Merlin Entertainments’ LEGOLAND® Discovery Centres in Boston, USA and in Manchester, UK and Genting Resorts World in Birmingham – this channel provides an opportunity for its partners to earn ancillary revenues, as well as providing an exciting additional attraction to their facilities.

·    Owned and franchised outlets, trading as ImmotionVR.


About Warehouse of Games:

Headquartered in Dubai, Warehouse of Games Ltd. (WOG) is one of the top suppliers of amusement equipment, arcade games, and family entertainment centres in the Middle East.  Its operations span the Middle East, North Africa, Pakistan, India, Iran, Iraq, and CIS countries. From amusement parks to indoor and outdoor entertainment centres, WOG designs and creates environments of sheer, uninterrupted fun! From the most efficient and comprehensive after-sales support, technical support and execution services to the most exciting and innovative range of games, rentals, and concept design & development of amusement parks, WOG offers you everything you need under one roof.  Warehouse of Games is the one-stop provider for all your entertainment and gaming needs. 



This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

European Metals Holdings Limited – Drill Programme Update

European Metals Holdings Limited (“European Metals” or “the Company“) is pleased to announce recent results from its current eight core-hole resource drilling programme at the Cinovec Project.  The current programme of work was announced by the Company on 5 November 2018 (Resource Drilling Commenced – Geotechnical Studies Continue). Drilling of five of the eight holes has been completed.  Drilling activities remain suspended and will resume after the end of the snow season.  Analytical results for the fifth of the drill holes from the Cinovec South deposit are reported.

Key points:

·     Hole CIS-14 returned 67m averaging 0.43% Li2O (incl. 3m @ 0.99% Li2O and 0.18% Sn); 8m @ 0.67% Li2O and 0.20% Sn (incl. 4.15m @ 1.00% Li2O and 0.35% Sn); 8m @ 0.21% Sn, 4m @ 0.39% Sn; and 3m @ 0.20% Sn

European Metals Managing Director, Keith Coughlan, commented “We are again pleased to present this update on our drilling programme.  As we have previously reported, the current drill programme has been planned to define blocks of resource for the first 2 years of mining within the Cinovec-South area, with a goal to convert the resource from indicated to measured category. The results of this programme have either been in line with, or exceeded, our expectations particularly with regard to the tin intercepts. I look forward to reporting the results of our lithium hydroxide production work, and the projected impacts upon the economics of the project over the next few weeks.”

Mineralized Intercepts and Lithology

Hole CIS-14 was collared in rhyolite and targeted into a typical part of the Cinovec South granite cupola. Rhyolite/granite contact was achieved at a depth of 188.85m. Below the contact predominately albite granite was intersected, with two Li rich greisen zones which returned 8m @ 0.67% Li2O, 0.20% Sn and 3m @ 0.81% Li2O.

The deeper portion of the hole comprised of greisenized granite with abundant greisen zones. This section hosted the major mineralized intercept of 67m @ 0.43% Li2O with several minor Sn and W intervals (e.g. 8m @ 0.21% Sn and 4m @ 0.39% Sn).

The hole was terminated at a depth of 315m in Li ore and not in the underlaying low-mica granite which is considered to be the footwall of the Li-granite. The intervals were calculated at a 0.2% Li2O cut-off, with a maximum internal waste of 4m.

The drill hole results are very similar to predictions from the current geological model, again demonstrating the quality and robustness of the Company’s geological and resource model.

Lithological intervals, incl. rhyolite / granite contact and zones of alteration, were intersected where predicted with a high level of accuracy. Also, the Li, Sn and W grades measured corresponded to the block model.

 Table 1: Completed and planned drill hole data

Hole ID



Elevation (m)

Azimuth (°)

Dip (°)

Total Depth (m)








































0.0 *

-90.0 *

310 *





0.0 *

-90.0 *

320 *





270.0 *

-80.0 *

305 *



(Please refer to the announcement on the European Metals Website for the graphic of Figure 1: Plan view with Company’s holes and resource blocks – www.europeanmet.com)

The assay results set out below in Table 2 have been tested externally by independent ALS Global.

Table 2: Mineralized intercepts in hole CIS-14.




Interval (m)

Determining element

Li2O (%)

Sn (%)

W (%)





































incl. 4.15m@1.00% Li2O, 0.35% Sn, 0.081% W (234.85-239m)















incl. 3m@0.99% Li2O, 0.18% Sn, 0.005% W (296-299m)




































Cut-off: 0.2%Li2O, 0.1%Sn, 0.05%W






Cinovec Lithium/Tin Project


European Metals, through its wholly owned subsidiary, Geomet s.r.o., controls the mineral exploration licenses awarded by the Czech State over the Cinovec Lithium/Tin Project. Cinovec hosts a globally significant hard rock lithium deposit with a total Indicated Mineral Resource of 372.4Mt @ 0.45% Li2O and 0.04% Sn and an Inferred Mineral Resource of 323.5Mt @ 0.39% Li2O and 0.04% Sn containing a combined 7.18 million tonnes Lithium Carbonate Equivalent and 263kt of tin reported 28 November 2017 (Further Increase in Indicated Resource at Cinovec South). An initial Probable Ore Reserve of 34.5Mt @ 0.65% Li2O and 0.09% Sn reported 4 July 2017 (Cinovec Maiden Ore Reserve – Further Information) has been declared to cover the first 20 years mining at an output of 22,500tpa of lithium carbonate reported 11 July 2018 (Cinovec Production Modelled to Increase to 22,500tpa of Lithium Carbonate).

This makes Cinovec the largest lithium deposit in Europe, the fourth largest non-brine deposit in the world and a globally significant tin resource.

The deposit has previously had over 400,000 tonnes of ore mined as a trial sub-level open stope underground mining operation.

EMH has completed a Preliminary Feasibility Study, conducted by specialist independent consultants, which indicated a return post tax NPV of USD540m and an IRR of 21% reported 19 April 2017 (PFS Confirms Potential Low Cost Lithium Carbonate Producer). It confirmed the deposit is amenable to bulk underground mining. Metallurgical test work has produced both battery grade lithium carbonate and high-grade tin concentrate at excellent recoveries. Cinovec is centrally located for European end-users and is well serviced by infrastructure, with a sealed road adjacent to the deposit, rail lines located 5 km north and 8 km south of the deposit and an active 22 kV transmission line running to the historic mine. As the deposit lies in an active mining region, it has strong community support.

The economic viability of Cinovec has been enhanced by the recent strong increase in demand for lithium globally, and within Europe specifically.

There are no other material changes to the original information and all the material assumptions continue to apply to the forecasts.



For further information on this update or the Company generally, please visit our website at www. http://europeanmet.com or contact:

Mr. Keith Coughlan
Managing Director  


Information in this release that relates to exploration results is based on information compiled by Dr Pavel Reichl. Dr Reichl is a Certified Professional Geologist (certified by the American Institute of Professional Geologists), a member of the American Institute of Professional Geologists, a Fellow of the Society of Economic Geologists and is a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves and a Qualified Person for the purposes of the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009. Dr Reichl consents to the inclusion in the release of the matters based on his information in the form and context in which it appears. Dr Reichl holds CDIs in European Metals.

The information in this release that relates to Mineral Resources and Exploration Targets has been compiled by Mr Lynn Widenbar. Mr Widenbar, who is a Member of the Australasian Institute of Mining and Metallurgy, is a full time employee of Widenbar and Associates and produced the estimate based on data and geological information supplied by European Metals. Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the JORC Code 2012 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Mr Widenbar consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.


Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the company’s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond the company’s control.

Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.



Lithium grades are normally presented in percentages or parts per million (ppm). Grades of deposits are also expressed as lithium compounds in percentages, for example as a percent lithium oxide (Li2O) content or percent lithium carbonate (Li2CO3) content.

Lithium carbonate equivalent (“LCE“) is the industry standard terminology for, and is equivalent to, Li2CO3. Use of LCE is to provide data comparable with industry reports and is the total equivalent amount of lithium carbonate, assuming the lithium content in the deposit is converted to lithium carbonate, using the conversion rates in the table included below to get an equivalent Li2CO3 value in percent. Use of LCE assumes 100% recovery and no process losses in the extraction of Li2CO3 from the deposit.

Lithium resources and reserves are usually presented in tonnes of LCE or Li.

The standard conversion factors are set out in the table below:

Table: Conversion Factors for Lithium Compounds and Minerals

Convert from

Convert to Li

Convert to Li2O

Convert to Li2CO3






Lithium Oxide





Lithium Carbonate






A copy of this announcement is available from the Company’s website at www.europeanmet.com.


The following is a summary of technical terms:

“ball and rod indices”

Indicies that provide an assessment of the energy required to grind one tonne of material in a ball or rod mill


refers to a carbonate mineral such as calcite, CaCO3


The crushing and/or grinding of material to a smaller scale

“cut-off grade”

lowest grade of mineralised material considered economic, used in the calculation of Mineral Resources


coherent geological body such as a mineralised body


method by which ore deposits are evaluated


selectively separating hydrophobic materials from hydrophilic materials to upgrade the concentration of valuable minerals


gram per metric tonne


relative quantity or the percentage of ore mineral or metal content in an ore body

“heavy liquid separation”

is based on the fact that different minerals have different densities. Thus, if a mixture of minerals with different densities can be placed in a liquid with an intermediate density, the grains with densities less than that of the liquid will float and grains with densities greater than the liquid will sink

“Indicated” or “Indicated Mineral Resource”

as defined in the JORC and SAMREC Codes, is that part of a Mineral Resource which has been sampled by drill holes, underground openings or other sampling procedures at locations that are too widely spaced to ensure continuity but close enough to give a reasonable indication of continuity and where geoscientific data are known with a reasonable degree of reliability. An Indicated Mineral Resource will be based on more data and therefore will be more reliable than an Inferred Mineral Resource estimate

“Inferred” or “Inferred Mineral Resource”

as defined in the JORC and SAMREC Codes, is that part of a Mineral Resource for which the tonnage and grade and mineral content can be estimated with a low level of confidence. It is inferred from the geological evidence and has assumed but not verified geological and/or grade continuity. It is based on information gathered through the appropriate techniques from locations such as outcrops, trenches, pits, working and drill holes which may be limited or of uncertain quality and reliability

“JORC Code”

Joint Ore Reserve Committee Code; the Committee is convened under the auspices of the Australasian Institute of Mining and Metallurgy


thousand tonnes


the total equivalent amount of lithium carbonate (see explanation above entitled Explanation of Lithium Classification and Conversion Factors)


a soft, silvery-white metallic element of the alkali group, the lightest of all metals

“lithium carbonate”

the lithium salt of carbonate with the formula Li2CO3

“magnetic separation”

is a process in which magnetically susceptible material is extracted from a mixture using a magnetic force


describing the science concerned with the production, purification and properties of metals and their applications

“Mineral Resource”

a concentration or occurrence of material of intrinsic economic interest in or on the Earth’s crust in such a form that there are reasonable prospects for the eventual economic extraction; the location, quantity, grade geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge; mineral resources are sub-divided into Inferred, Indicated and Measured categories


process of formation and concentration of elements and their chemical compounds within a mass or body of rock


million tonnes

“optical microscopy”

the determination of minerals by observation through an optical microscope


parts per million


proportion of valuable material obtained in the processing of an ore, stated as a percentage of the material recovered compared with the total material present


Measured: a mineral resource intersected and tested by drill holes, underground openings or other sampling procedures at locations which are spaced closely enough to confirm continuity and where geoscientific data are reliably known; a measured mineral resource estimate will be based on a substantial amount of reliable data, interpretation and evaluation which allows a clear determination to be made of shapes, sizes, densities and grades. Indicated: a mineral resource sampled by drill holes, underground openings or other sampling procedures at locations too widely spaced to ensure continuity but close enough to give a reasonable indication of continuity and where geoscientific data are known with a reasonable degree of reliability; an indicated resource will be based on more data, and therefore will be more reliable than an inferred resource estimate. Inferred: a mineral resource inferred from geoscientific evidence, underground openings or other sampling procedures where the lack of data is such that continuity cannot be predicted with confidence and where geoscientific data may not be known with a reasonable level of reliability


testing material to investigate its performance in a semi-autonomous grinding mill

“spiral concentration”

a process that utilises the differential density of materials to concentrate valuable minerals


underground excavation within the orebody where the main production takes place


a metric tonne


A tetragonal mineral, rare; soft; malleable: bluish white, found chiefly in cassiterite, SnO2


Physical or chemical treatment to extract the valuable metals/minerals


hard, brittle, white or grey metallic element. Chemical symbol, W; also known as wolfram


chemical symbol for tungsten





relating to, or denoting an apex


A mineral, tin dioxide, SnO2. Ore of tin with specific gravity 7


A dome-shaped projection at the top of an igneous intrusion


the true dip of a plane is the angle it makes with the horizontal plane


coarse-grained intrusive igneous rock dominated by light-coloured minerals, consisting of about 50% orthoclase, 25% quartz and balance of plagioclase feldspars and ferromagnesian silicates


A pneumatolitically altered granitic rock composed largely of quartz, mica, and topaz. The mica is usually muscovite or lepidolite. Tourmaline, fluorite, rutile, cassiterite, and wolframite are common accessory minerals


said of a rock or mineral that solidified from molten or partly molten material, i.e., from a magma


also known as potash mica; formula: KAl2(AlSi3O10)(F,OH)2.


a mineral composed of silicon dioxide, SiO2


An igneous, volcanic rock of felsic (silica rich) composition.  Typically >69% SiO2


a tabular deposit of minerals occupying a fracture, in which particles may grow away from the walls towards the middle


A mineral, (Fe,Mn)WO4; within the huebnerite-ferberite series


A mineral, KLiFeAl(AlSi3)O10 (F,OH)2; mica group; basal cleavage; pale violet, yellowish or greyish brown; in granites, pegmatites, and greisens


European Metals Holdings Limited

Keith Coughlan, Managing Director

Kiran Morzaria, Non-Executive Director

Julia Beckett, Company Secretary

Tel: +61 (0) 419 996 333

Email: keith@europeanmet.com

Tel: +44 (0) 20 7440 0647

Tel: +61 (0) 8 6245 2057

Email: julia@europeanmet.com

Beaumont Cornish (Nomad & Broker)

Michael Cornish

Roland Cornish

Tel: +44 (0) 20 7628 3396

Email: corpfin@b-cornish.co.uk

Joint Broker

Damon Health

Erik Woolgar

Shard Capital

Tel:  +44 (0) 20 7186 9950

The information contained within this announcement is considered to be inside information, for the purposes of Article 7 of EU Regulation 596/2014, prior to its release.  The person who arranged for the release of this announcement on behalf of the Company was Keith Coughlan, Managing Director.

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data


JORC Code explanation


Sampling techniques

·     Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

·     Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

·     Aspects of the determination of mineralisation that are Material to the Public Report.

·     In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

·     Between 2014 and 2017, the Company commenced a core drilling program and collected samples from core splits in line with JORC Code guidelines.

·     Sample intervals honour geological or visible mineralization boundaries and vary between 50cm and 2 m. Majority of samples is 1 m in length

·     The samples are half or quarter of core; the latter applied for large diameter core.

·     Between 1952 and 1989, the Cinovec deposit was sampled in two ways: in drill core and underground channel samples.

·     Channel samples, from drift ribs and faces, were collected during detailed exploration between 1952 and 1989 by Geoindustria n.p. and Rudne Doly n.p., both Czechoslovak State companies. Sample length was 1 m, channel 10x5cm, sample mass about 15kg. Up to 1966, samples were collected using hammer and chisel; from 1966 a small drill (Holman Hammer) was used. 14179 samples were collected and transported to a crushing facility.

·     Core and channel samples were crushed in two steps: to -5mm, then to -0.5mm. 100g splits were obtained and pulverized to -0.045mm for analysis.

Drilling techniques

·     Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

·     In 2014, three core holes were drilled for a total of 940.1m. In 2015, six core holes were drilled for a total of 2,455.0m. In 2016, eight core holes were drilled for a total of 2,795.6m.In 2017, siz core holes were drilled for a total of 2697.1m.

·     In 2014 and 2015, the core size was HQ3 (60mm diameter) in upper parts of holes; in deeper sections the core size was reduced to NQ3 (44mm diameter). Core recovery was high (average 98%). In 2016 and 2017 up to four drill rigs were used, and select holes employed PQ sized core for upper parts of the drillholes.

·     Historically only core drilling was employed, either from surface or from underground.

·     Surface drilling: 80 holes, total 30,340 meters; vertical and inclined, maximum depth 1596m (structural hole). Core diameters from 220mm near surface to 110 mm at depth. Average core recovery 89.3%.

·     Underground drilling: 766 holes for 53,126m; horizontal and inclined. Core diameter 46mm; drilled by Craelius XC42 or DIAMEC drills.

Drill sample recovery

·     Method of recording and assessing core and chip sample recoveries and results assessed.

·     Measures taken to maximise sample recovery and ensure representative nature of the samples.

·     Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

·     Core recovery for historical surface drill holes was recorded on drill logs and entered into the database.

·     No correlation between grade and core recovery was established.


·     Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

·     Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

·     The total length and percentage of the relevant intersections logged.

·     In 2014-2017, core descriptions were recorded into paper logging forms by hand and later entered into an Excel database.

·     Core was logged in detail historically in a facility 6 km from the mine site.  The following features were logged and recorded in paper logs: lithology, alteration (including intensity divided into weak, medium and strong/pervasive), and occurrence of ore minerals expressed in %, macroscopic description of congruous intervals and structures and core recovery.

Sub-sampling techniques and sample preparation

·     If core, whether cut or sawn and whether quarter, half or all core taken.

·     If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

·     For all sample types, the nature, quality and appropriateness of the sample preparation technique.

·     Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

·     Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

·     Whether sample sizes are appropriate to the grain size of the material being sampled.

·     In 2014-17, core was washed, geologically logged, sample intervals determined and marked then the core was cut in half. In 2016 and 2017 larger core was cut in half and one half was cut again to obtain a quarter core sample.  One half or one quarter samples was delivered to ALS Global for assaying after duplicates, blanks and standards were inserted in the sample stream. The remaining drill core is stored on site for reference.

·     Sample preparation was carried out by ALS Global in Romania, using industry standard techniques appropriate for the style of mineralisation represented at Cinovec.

·     Historically, core was either split or consumed entirely for analyses.

·     Samples are considered to be representative.

·     Sample size and grains size are deemed appropriate for the analytical techniques used.


Quality of assay data and laboratory tests

·     The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

·     For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

·     Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

·     In 2014-17, core samples were assayed by ALS Global. The most appropriate analytical methods were determined by results of tests for various analytical techniques.

·     The following analytical methods were chosen: ME-MS81 (lithium borate fusion or 4 acid digest, ICP-MS finish) for a suite of elements including Sn and W and ME-4ACD81 (4 acid digest, ICP-AES finish) additional elements including lithium.

·     About 40% of samples were analysed by ME-MS81d (ME-MS81 plus whole rock package). Samples with over 1% tin are analysed by XRF. Samples over 1% lithium were analysed by Li-OG63 (four acid and ICP finish).

·     Standards, blanks and duplicates were inserted into the sample stream.  Initial tin standard results indicated possible downgrading bias; the laboratory repeated the analysis with satisfactory results.

·     Historically, tin content was measured by XRF and using wet chemical methods. W and Li were analysed by spectral methods.

·     Analytical QA was internal and external.  The former subjected 5% of the sample to repeat analysis in the same facility.  10% of samples were analysed in another laboratory, also located in Czechoslovakia. The QA/QC procedures were set to the State norms and are considered adequate. It is unknown whether external standards or sample duplicates were used.

·     Overall accuracy of sampling and assaying was proved later by test mining and reconciliation of mined and analysed grades.

Verification of sampling and assaying

·     The verification of significant intersections by either independent or alternative company personnel.

·     The use of twinned holes.

·     Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

·     Discuss any adjustment to assay data.

·     During the 2014-17 drill campaigns the Company indirectly verified grades of tin and lithium by comparing the length and grade of mineral intercepts with the current block model.

Location of data points

·     Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

·     Specification of the grid system used.

·     Quality and adequacy of topographic control.

·     In 2014-17, drill collar locations were surveyed by a registered surveyor.

·     Down hole surveys were recorded by a contractor.

·     Historically, drill hole collars were surveyed with a great degree of precision by the mine survey crew.

·     Hole locations are recorded in the local S-JTSK Krovak grid.

·     Topographic control is excellent.

Data spacing and distribution

·     Data spacing for reporting of Exploration Results.

·     Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

·     Whether sample compositing has been applied.

·     Historical data density is very high.

·     Spacing is sufficient to establish an inferred resource that was initially estimated using MICROMINE software in Perth, 2012.

·     Areas with lower coverage of Li% assays have been identified as exploration targets.

·     Sample compositing to 1m intervals has been applied mathematically prior to estimation but not physically.

Orientation of data in relation to geological structure

·     Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

·     If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

·     In 2014-17, drill hole azimuth and dip was planned to intercept the mineralized zones at near-true thickness.  As the mineralized zones dip shallowly to the south, drill holes were vertical or near vertical and directed to the north. Due to land access restrictions, certain holes could not be positioned in sites with ideal drill angle.

·     The Company has not directly collected any samples underground because the workings are inaccessible at this time.

·     Based on historic reports, level plan maps, sections and core logs, the samples were collected in an unbiased fashion, systematically on two underground levels from drift ribs and faces, as well as from underground holes drilled perpendicular to the drift directions.  The sample density is adequate for the style of deposit.

·     Multiple samples were taken and analysed by the Company from the historic tailing repository. Only lithium was analysed (Sn and W too low).  The results matched the historic grades.

Sample security

·     The measures taken to ensure sample security.

·     In the 2014-17 programs, only the Company’s employees and contractors handled drill core and conducted sampling. The core was collected from the drill rig each day and transported in a company vehicle to the secure Company premises where it was logged and cut.  Company geologists supervised the process and logged/sampled the core.   The samples were transported by Company personnel in a Company vehicle to the ALS Global laboratory pick-up station. The remaining core is stored under lock and key.

·     Historically, sample security was ensured by State norms applied to exploration.  The State norms were similar to currently accepted best practice and JORC guidelines for sample security.

Audits or reviews

·     The results of any audits or reviews of sampling techniques and data.

·     Review of sampling techniques possible from written records. No flaws found.

Section 2 Reporting of Exploration Results

(Criteria listed in section 1 also apply to this section.)


JORC Code explanation


Mineral tenement and land tenure status

·     Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

·     The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

·     Cinovec exploration rights held under three licenses Cinovec (expires 30/07/2019), Cinovec 2 (expires 31/12/2020) and Cinovec 3 (expires 31/10/2021).100% owned, no native interests or environmental concerns. A State royalty applies metals production and is set as a fee in Czech crowns per unit of metal produced.

·     There are no known impediments to obtaining an Exploitation Permit for the defined resource.

Exploration done by other parties

·     Acknowledgment and appraisal of exploration by other parties.

·     There has been no acknowledgment or appraisal of exploration by other parties.


·     Deposit type, geological setting and style of mineralisation.

·     Cinovec is a granite-hosted tin-tungsten-lithium deposit.

·     Late Variscan age, post-orogenic granite intrusionTin and tungsten occur in oxide minerals (cassiterite and wolframite). Lithium occurs in zinwaldite, a Li-rich muscovite

·     Mineralization in a small granite cupola.  Vein and greisen type. Alteration is greisenisation, silicification.

Drill hole Information

·     A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

easting and northing of the drill hole collar

elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar

dip and azimuth of the hole

down hole length and interception depth

hole length.

·     If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

·     Reported previously.

Data aggregation methods

·     In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

·     Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

·     The assumptions used for any reporting of metal equivalent values should be clearly stated.

·     Reporting of exploration results has not and will not include aggregate intercepts.

·     Metal equivalent not used in reporting.

·     No grade truncations applied.

Relationship between mineralisation widths and intercept lengths

·     These relationships are particularly important in the reporting of Exploration Results.

·     If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

·     If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).

·     Intercept widths are approximate true widths.

·     The mineralization is mostly of disseminated nature and relatively homogeneous; the orientation of samples is of limited impact.

·     For higher grade veins care was taken to drill at angles ensuring closeness of intercept length and true widths

·     The block model accounts for variations between apparent and true dip.


·     Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

·     Appropriate maps and sections have been generated by the Company, and independent consultants. Available in customary vector and raster outputs, and partially in consultant’s reports.

Balanced reporting

·     Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

·     Balanced reporting in historic reports guaranteed by norms and standards, verified in 1997, and 2012 by independent consultants.

·     The historic reporting was completed by several State institutions and cross validated.

Other substantive exploration data

·     Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

·     Data available: bulk density for all representative rock and ore types; (historic data + 92 measurements in 2016-17 from current core holes); petrographic and mineralogical studies, hydrological information, hardness, moisture content, fragmentation etc.

Further work

·     The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

·     Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

·     Grade verification sampling from underground or drilling from surface.  Historically-reported grades require modern validation in order to improve the resource classification.

·     The number and location of sampling sites will be determined from a 3D wireframe model and geostatistical considerations reflecting grade continuity.

·     The geologic model will be used to determine if any infill drilling is required.

·     The deposit is open down-dip on the southern extension, and locally poorly constrained at its western and eastern extensions, where limited additional drilling might be required.

·     No large scale drilling campaigns are required.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)


JORC Code explanation


Database integrity

·     Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.

·     Data validation procedures used.

·     Assay and geologic data were compiled by the Company staff from primary historic records, such as copies of drill logs and large scale sample location maps.

·     Sample data were entered in to Excel spreadsheets by Company staff in Prague.

·     The database entry process was supervised by a Professional Geologist who works for the Company.

·     The database was checked by independent competent persons (Lynn Widenbar of Widenbar & Associates, Phil Newell of Wardell Armstrong International).

Site visits

·     Comment on any site visits undertaken by the Competent Person and the outcome of those visits.

·     If no site visits have been undertaken indicate why this is the case.

·     The site was visited by Mr Pavel Reichl who has identified the previous shaft sites, tails dams and observed the mineralisation underground through an adjacent mine working.

·     The site was visited in June 2016 by Mr Lynn Widenbar, the Competent Person for Mineral Resource Estimation. Diamond drill rigs were viewed, as was core; a visit was carried out to the adjacent underground mine in Germany which is a continuation of the Cinovec Deposit.

Geological interpretation

·     Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.

·     Nature of the data used and of any assumptions made.

·     The effect, if any, of alternative interpretations on Mineral Resource estimation.

·     The use of geology in guiding and controlling Mineral Resource estimation.

·     The factors affecting continuity both of grade and geology.

·     The overall geology of the deposit is relatively simple and well understood due to excellent data control from surface and underground.

·     Nature of data: underground mapping, structural measurements, detailed core logging, 3D data synthesis on plans and maps.

·     Geological continuity is good.  The grade is highest and shows most variability in quartz veins.

·     Grade correlates with degree of silicification and greisenisation of the host granite.

·     The primary control is the granite-country rock contact.  All mineralization is in the uppermost 200m of the granite and is truncated by the contact.


·     The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.

·     The Cinovec South deposit strikes north-south, is elongated, and dips gently south parallel to the upper granite contact.  The surface projection of mineralization is about 1 km long and 900 m wide.

·     Mineralization extends from about 200m to 500m below surface.

Estimation and modelling techniques

·     The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.

·     The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.

·     The assumptions made regarding recovery of by-products.

·     Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation).

·     In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.

·     Any assumptions behind modelling of selective mining units.

·     Any assumptions about correlation between variables.

·     Description of how the geological interpretation was used to control the resource estimates.

·     Discussion of basis for using or not using grade cutting or capping.

·     The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.

·     Block estimation was carried out in Micromine using Ordinary Kriging interpolation.

·     A geological domain model was constructed using Leapfrog software with solid wireframes representing greisen, granite, greisenised granite and the overlying barren rhyolite. This was used to both control interpolation and to assign density to the model (2.57 for granite, 2.70 for greisen and 2.60 for all other material).

·     Analysis of sample lengths indicated that compositing to 1m was necessary.

·     Search ellipse sizes and orientations for the estimation were based on drill hole spacing, the known orientations of mineralisation and variography.

·     An “unfolding” search strategy was used which allowed the search ellipse orientation to vary with the locally changing dip and strike.

·     After statistical analysis, a top cut of 5% was applied to Sn% and W%; no top cut is applied to Li%.

·     Sn% and Li% were then estimated by Ordinary Kriging within the mineralisation solids.

·     The primary search ellipse was 150m along strike, 150m down dip and 7.5m across the mineralisation. A minimum of 4 composites and a maximum of 8 composites were required.

·     A second interpolation with search ellipse of 300m x 300m x 12.5m was carried out to inform blocks to be used as the basis for an exploration target.

·     Block size was 10m (E-W) by 10m (N-S) by 5m

·     Validation of the final resource has been carried out in a number of ways including section comparison of data versus model, swathe plots and production reconciliation.


·     Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.

·     Tonnages are estimated on a dry basis using the average bulk density for each geological domain.

Cut-off parameters

·     The basis of the adopted cut-off grade(s) or quality parameters applied.

·     A series of alternative cutoffs was used to report tonnage and grade: Sn 0.1%, 0.2%, 0.3% and 0.4%. Lithium 0.1%, 0.2%, 0.3% and 0.4%.

Mining factors or assumptions

·     Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.

·     Mining is assumed to be by underground methods. A Scoping Study has determined the optimal mining method.

·     Limited internal waste will need to be mined at grades marginally below cutoffs.  Mine dilution and waste are expected at minimal levels and the vast majority of the Mineral Resource is expected to convert to an Ore Reserve.

·     Based on the geometry of the deposit, it is envisaged that a combination of drift and fill mining and longhole open stoping will be used.


Metallurgical factors or assumptions

·     The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.

·     Recent testwork on 2014 drill core indicates a tin recovery of 80% can be expected.

·     Testwork on lithium is complete, with 70% recovery of lithium to lithium carbonate product via flotation concentrate and atmospheric leach.

·     Extensive testwork was conducted on Cinovec South ore in the past. Testing culminated with a pilot plant trial in 1970, where three batches of Cinovec South ore were processed, each under slightly different conditions. The best result, with a tin recovery of 76.36%, was obtained from a batch of 97.13t grading 0.32% Sn. A more elaborate flowsheet was also investigated and with flotation produced final Sn and W recoveries of better than 96% and 84%, respectively.

·     Historical laboratory testwork demonstrated that lithium can be extracted from the ore (lithium carbonate was produced from 1958-1966 at Cinovec).

Environmental factors or assumptions

·     Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.

·     Cinovec is in an area of historic mining activity spanning the past 600 years. Extensive State exploration was conducted until 1990.

·     The property is located in a sparsely populated area, most of the land belongs to the State. Few problems are anticipated with regards to the acquisition of surface rights for any potential underground mining operation.

·     The envisaged mining method will see much of the waste and tailings used as underground fill.

Bulk density

·     Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.

·     The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.

·     Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.

·     Historical bulk density measurements were made in a laboratory.

·     The following densities were applied:

2.57 for granite

2.70 for greisen

2.60 for all other material


·     The basis for the classification of the Mineral Resources into varying confidence categories.

·     Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).

·     Whether the result appropriately reflects the Competent Person’s view of the deposit.

·     Following a review of a small amount of available QAQC data, and comparison of production data versus estimated tonnage/grade from the resource model, and given the close spacing of underground drilling and development, the majority of the Tin resource was originally classified in the Inferred category as defined by the 2012 edition of the JORC code.

·     The new 2014 and 2016-17 drilling has confirmed the Tin mineralisation model and a part of this area has been upgraded to the Indicated category.

·     The Li% mineralisation has been assigned to the Inferred category where the average distance to composites used in estimation is less than 100m. Material outside this range is unclassified but has been used as the basis for an Exploration Target.

·     The new 2014 and 2016-17 drilling has confirmed the Lithium mineralisation model and a part of this area has been upgraded to the Indicated category.

·     The Competent Person (Lynn Widenbar) endorses the final results and classification.

Audits or reviews

·     The results of any audits or reviews of Mineral Resource estimates.

·     Wardell Armstrong International, in their review of Lynn Widenbar’s initial resource estimate stated “the Widenbar model appears to have been prepared in a diligent manner and given the data available provides a reasonable estimate of the drillhole assay data at the Cinovec deposit”.


Discussion of relative accuracy/ confidence

·     Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.

·     The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

·     These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

·     In 2012, WAI carried out model validation exercises on the initial Widenbar model, which included visual comparison of drilling sample grades and the estimated block model grades, and Swath plots to assess spatial local grade variability.

·     A visual comparison of Block model grades vs drillhole grades was carried out on a sectional basis for both Sn and Li mineralisation. Visually, grades in the block model correlated well with drillhole grade for both Sn and Li.

·     Swathe plots were generated from the model by averaging composites and blocks in all 3 dimensions using 10m panels. Swath plots were generated for the Sn and Li estimated grades in the block model, these should exhibit a close relationship to the composite data upon which the estimation is based. As the original drillhole composites were not available to WAI. 1m composite samples based on 0.1% cut-offs for both Sn and Li assays were

·     Overall Swathe plots illustrate a good correlation between the composites and the block grades. As is visible in the Swathe plots, there has been a large amount of smoothing of the block model grades when compared to the composite grades, this is typical of the estimation method.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Nostra Terra Oil & Gas Company Plc – £1.15 million placing to develop Mesquite

Nostra Terra (AIM:NTOG), the oil and gas exploration and production company with a portfolio of assets in the USA and Egypt, announces that it has raised £1.15 million (gross) by way of a placement of 47,916,665 new ordinary shares of 0.1 pence each (“Ordinary Shares”) (the “Placing Shares”) at a price of 2.4 pence per Placing Share (the “Placing”), this being the closing bid price of the Company’s Ordinary Shares on AIM on 26 February 2019.


The Placing is only conditional on the admission of the Placing Shares to trading on AIM (“Admission”) and is being conducted with new institutional and other investors. The Placing was led by Shard Capital Partners LLP, which has been appointed as joint broker to the Company with immediate effect.


The Placing will enable the Company to strengthen its position in the Mesquite Asset in the Permian Basin (“Mesquite”), ahead of identifying and securing a farm-in partner to deliver the Mesquite Field Development Plan (first iteration announced 21 January 2019).


About the Mesquite Asset


The Mesquite Asset is in West Texas and covers 2,184 gross acres (1,984 net acres to Nostra Terra) in the prolific Permian Basin. The target formations at the Mesquite Asset are “tight”, meaning the oil-bearing rock formations are of low permeability. As such, the target formations have characteristics that make them ideal targets for horizontal drilling and have delivered substantial oil production in other areas of the prolific Permian Basin. Comparable regional horizontal drilling has delivered initial oil production rates of 200-300bopd.


In the first complete iteration of the Mesquite Field Development plan, which covers 1,384 net acres, Mesquite is estimated to have a US$21,600,000 NPV10 valuation at US$53 / oil barrel and a US$28,600,000 NPV10 valuation at US$60 / oil barrel, once fully developed. The respective estimated IRRs are 34% at US$53 / oil barrel and 46% at US$60 / oil barrel.


Based on 5,000ft (1,524m) lateral (horizontal) wells at 160 acre spacing, each well at Mesquite is estimated to contain 300,000 barrels of recoverable oil (Estimated Ultimate Recovery, “EUR”). It is expected each well will have a life of 20 years and is expected to deliver 100,000 barrels of oil production over the first three years.


Admission to trading and Total Voting Rights

Application will made for Admission, which is expected to occur on 13 March 2019. The Placing Shares will rank pari passu with the existing Ordinary Shares. 


Following the Placing, the Company’s total issued ordinary share capital will consist of 195,122,886 Ordinary Shares with voting rights.  No Shares are held in treasury.


The above figure of 195,122,886 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the FCA’s Disclosure and Transparency Rules.


Matt Lofgran, Chief Executive Officer of Nostra Terra, commented:


“Our goal with Mesquite is to find the right industry partner to work with on developing the asset. By significantly strengthening our balance sheet and welcoming institutional investment into the Company at this time, we are positioned to retain more interest in the asset going forward.


“The Board believes the Permian Basin remains one of the most attractive oil provinces globally, attracting billions of dollars in investment each year. In the Mesquite target area Nostra Terra still has first mover advantage, so it is important for a company of our size to move as quickly as it can in securing its position. We are on course to deliver substantial value to shareholders over the coming years.”


This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.


For further information, visit www.ntog.co.uk or contact:


Nostra Terra Oil and Gas Company plc

Matt Lofgran, CEO



+1 480 993 8933

Strand Hanson Limited

(Nominated & Financial Adviser and Joint Broker)

Rory Murphy / Ritchie Balmer / Jack Botros



+44 (0) 20 7409 3494

Shard Capital Stockbrokers (Joint Broker)

Damon Heath / Erik Woolgar



+44 (0) 207 186 9952


Smaller Company Capital Limited (Joint Broker)

Rupert Williams / Jeremy Woodgate


+44 (0) 20 3651 2910


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Shard Capital expands team with new Commodities Partner

Shard Capital, is pleased to announce the appointment of Ashley Boolell as Partner to strengthen its existing team and establish a Commodity Hedging proposition.

Shard Capital’s commodities business serves commodity consumers and producers looking to hedge their price exposure. These range from small caps looking to lock their budgeted prices over an established period of time to large corporations with a dynamic hedging policy.

Ashley has in-depth knowledge of commodity markets, extensive experience working with a diverse portfolio of European corporate clients and is skilled in business development. His core expertise lies in providing hedging solutions to commodity end-users and producers while tailoring his services to meet their specific needs.  Prior to joining Shard Capital, Ashley spent 12 years working in Commodity Derivatives Sales at the French investment bank Natixis, working in Paris for seven years before moving to London in 2013.

As part of Shard Capital’s expansion into the commodity market, it has formed a strategic partnership with Marex Solutions, part of Marex Spectron, the major commodity broker based in London which was created to provide tailored OTC hedging solutions to commodity end-users and producers as opposed to standardised exchange-traded hedging instruments.

Marex Solutions was built as an alternative to traditional hedging counterparties and is composed of very skilled traders who blend their market marking ability with a novel competitive edge in technology. It is, de facto, the first Fintech to emerge within the commodity hedging space.

Ashley has quickly plugged his skills to Shard Capital and closed a first trade earlier this month, thereby confirming the business opportunity provided by the commodity markets. The trade was carried out with a French Mid-Cap looking to hedge its copper exposure on a commercial contract.

CEO Toby Raincock said: “We have seen a real exodus of traditional financial players – mainly banks – from the commodity sector since 2012.  In recognition of the changing landscape, Shard Capital has been building out its team of highly experienced commodity experts and developing a sophisticated offering that seeks to fill the space left behind.

“We are delighted to welcome Ashley to the team as he brings a wealth of experience that will prove instrumental in growing our commodity hedging services which are now an integral part of our business. Furthermore, our strategic partnership with Marex Solutions creates efficiencies, which eliminate the pitfalls faced by banks and other traditional financial counterparties offering commodity hedging services.”

To read more about Commodities at Shard Capital, please visit www.shardcapital.com/capital-markets/commodities

An introduction to Stocks & Shares ISAs: Part 1 of our end of tax year series

This article is not advice or a recommendation to buy, sell or hold any investment. All trading involves risk.


Now is the time to prepare for the end of the tax year with an Individual Savings Account, commonly referred to as ISA – a beneficial vehicle for long-term savings, sheltered from taxation.  ISA’s enable individuals to save or invest money without paying income or capital gains tax on investment returns accrued.  For each tax year, there’s a limit to the amount that can be invested through an ISA, termed the annual allowance. For the 2018/19 tax year, the allowance is £20,000.

It should be remembered though that tax rules are liable to alteration, and personal circumstances can affect how beneficial they are.


Stocks and Shares ISAs

Stocks and Shares ISAs were introduced in 1999 and provide retail investors resident in the United Kingdom with one of the most tax efficient investment wrappers available: returns generated are free from Capital Gains Tax, while dividends received within an ISA will remain tax free and won’t impact your dividend allowance.

Whilst Cash ISAs are the most popular, interest rates are poor currently, and have been for a while.  Stocks and Shares ISAs are not limited by these rates in the same way, and as long as you are happy with the level of risk, they can offer an effective and efficient vehicle for saving.

Within a Stocks and Shares ISA it is possible to hold a variety of investments, including funds, shares and corporate bonds, amongst others, protecting any returns from tax.  They are generally regarded as being most effective for longer term investing, as they can produce significantly higher returns.  It should be remembered however that there is an element of risk involved with Stocks and Shares ISAs; the value of your investment can go down as well as up, so it is possible to lose money.


Junior Stocks and Shares ISAs (JISAs)

Junior Stocks and Shares ISAs allow parents or guardians with parental responsibility to invest in a tax efficient investment wrapper on behalf of a child. The parent or guardian responsible maintains control of the Junior ISA until the child turns 18 years of age, but as soon as a subscription has been made the money becomes the child’s.  JISAs were introduced on 1 November 2011 and replaced the old Child Trust Fund Schemes.  The Junior ISA allowance for current tax year which runs from the 06th April 2018 to the 05th April 2019 is £4,260


Who can open an ISA?

The individual must be:

  • 16 years or above for a cash ISA
  • Your child must be under 18 years for a Junior ISA
  • 18 years or above for a Stocks and Shares ISA
  • Resident in the UK
  • A Crown servant (E.g. Diplomatic or overseas civil service) or their spouse or civil partner if not residing in the UK


The Shard Capital Stockbroking team are highly experienced in portfolio management and diversification and can tailor an investment solution for an individual looking to start or grow their ISA.

If you would like more information on a stocks and shares ISA or an alternate investment solution, please contact the Shard Capital Stockbroking team.



Important Investment Information –

“This document has been prepared and issued by Shard Capital Partners LLP (“Shard Capital”), which is authorised and regulated by the Financial Conduct Authority.

This document is a marketing communication and not independent research. As such, it has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

This document is published solely for information purposes and is not to be construed as a solicitation or an offer to buy or sell any securities, or related financial instruments. It does not constitute a personal recommendation as defined by the Financial Conduct Authority, nor does it take account of the particular investment objectives, financial situations or needs of individual investors. The information contained herein is obtained from public information and sources considered reliable. However, the accuracy thereof cannot be guaranteed.

The information contained in this document is solely for use by those persons to whom it is addressed and may not be reproduced, further distributed to any other person or published, in whole or in part, for any purpose, at any time, without the prior written consent of Shard Capital. This document may not be distributed to any persons (or groups of persons) to whom such distribution would contravene the UK Financial Services and Markets Act 2000. Moreover, this document is not directed at persons in any jurisdictions in which Shard Capital is prohibited or restricted by any legislation or regulation in those jurisdictions from making it available. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

Shard Capital or its employees may have a position in the securities and derivatives of the companies researched and this may impair the objectivity of this report. Shard Capital may act as principal in transactions in any relevant securities or provide advisory or other service to any issuer of relevant securities or any company connected therewith.

None of Shard Capital or any of its or their officers, employees or agents accept any responsibility or liability whatsoever for any loss however arising from any use of this document or its contents or otherwise arising in connection therewith. The value of the securities and the income from them may fluctuate. It should be remembered that past performance is not a guarantee of future performance. Investments may go down in value as well as up and you may not get back the full amount invested. If you are unsure of the suitability of share dealing specifically for you then you should contact an Independent Financial Adviser, authorised by the Financial Conduct Authority. By accepting this document, the recipient agrees to the foregoing disclaimer and to be bound by its limitations and restrictions.

Shard Capital has in place a Conflicts of Interest Policy relating to its research and marketing communication activities, and disclosure and conflicts in general is available on request.”

WideCells Group Plc – Directorate Change

WideCells Group PLC, announces that, following the issuance of the Prospectus on 22 February 2019, Mr. David Sefton, who has a significant financial interest in the Company through the acquisition by Nuuco Media Limited, a company controlled by Mr. Sefton, of an option to acquire up to 29.9% of the Company’s issued share capital, has been appointed to the Board as Executive Chairman, to advise on potential future strategies and acquisitions for the Company.

Additionally, to support Mr. Sefton, Mr. Richard Thompson has been appointed as a Non-Executive Director.  The new Board members bring a wide range of business, corporate and capital market experience and a proven track record in building companies and generating value for all stakeholders.  They will be active in evaluating opportunities that they believe will benefit from the cumulative expertise of the Board as well as the Company’s corporate structure.


As part of these Board changes, Mr. Peter Presland, who has been Non-Executive Chairman since December 2017, will step down from that role, but will remain on the Board as a Non-Executive Director.


Alongside the new appointments, Mr. Joao Andrade and Dr. Jeremy Lea have stepped down from their respective roles on the Board.  They will both continue to work for WideCells International Limited (“WCI”), a wholly owned subsidiary of the WideCells Group, through which the current stem cell services business is transacted. Dr. Lea will become Chief Executive Officer of WCI and Mr. Andrade will provide support to him.


Additionally, Mr. Malcolm Glaister and Mr. David Henriques have resigned as Non-Executive Directors of the Company with immediate effect.


Executive Chairman Mr. David Sefton has extensive public and private company board experience in the UK and North America. He is the founder and Managing Partner of Linton Capital LLP, a private equity manager; a director of LRE Capital, a real estate fund manager; and is the founder and Executive Chairman of Anglo African Oil & Gas Plc, an AIM listed exploration and production company. David has made and structured investments and acquisitions across Europe, Russia, the Middle East, Africa and North America, including in the energy, technology, telecoms and media sectors. He completed undergraduate and postgraduate studies at the University of Oxford and initially practised as a barrister, before joining the New York law firm Cleary Gottlieb, Steen & Hamilton. David is registered as an approved person with the Financial Conduct Authority.

Non-Executive Director Mr. Richard Thompson has extensive experience in private and public companies both on an operational and investing capacity.  He began his career at Hillsdown Holdings and has had roles including Chairman of QPR, Leeds Utd and Windsor Racecourse. He was also the founder investor of Fonix, mobile telephony.


David Sefton, Executive Chairman of WideCells, commented: “We have taken control of the Board of the Company and are focussed on building a business that generates value for shareholders.  The new Board has an extensive network, commercial experience and business expertise that we will utilise to implement a wider strategy and identify additional businesses that we believe will benefit from the new Board and the listed corporate structure.  We remain supportive of a restructured and simplified WideCells business, which will be run entirely through a subsidiary structure, and are excited about the future for the Company itself and of consummating deals in the near future.”


Mr. David Sefton, aged 48, currently holds or has held the following directorships and partnerships in the last five years:

Current Directorships

Past Directorships

LRE Capital Ltd

Anglo African Oil & Gas Plc

Arch Capital Partners LLP

Sefton Management Limited

Linton Capital LLP

Anglo Congolese Enterprises Limited

Nuuco Media Limited


Mr. Richard Thompson, aged 54, currently holds or has held the following directorships and partnerships in the last five years:

Current Directorships

Past Directorships

Gallanta Investments Limited

Kipling House Holdings Ltd

Starnevesse Limited

Fonix Mobile Limited

FP Realisations 2015 Limited

Sportsdata Limited

One Line Films Limited

Play Now Limited

Cheveley Park Stud Ltd

Thompson Investments (London)

Monumental Adventure Productions Limited

Myskillz Community Enterprise

Organic Global Infusions Limited

Twin Flame Media Limited

TEGL Limited

Compatibility Index Limited

OLCI Construction Skills Limited

OLCI Group Limited

High Growth Capital Plc

Myskillz Limited

Churchill Media Limited

Metal Pig Limited

OLCI Construction Training Limited

Dataplay Holdings Limited

Thompson Finch Limited

Racing Insider Limited


Market Abuse Regulation (MAR) Disclosure – Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.



For further information, please visit the Company’s website www.widecellsgroup.com or contact:

Shard Capital Partners LLP

Broker – Damon Heath & Erik Woolgar

Tel: +44 (0) 20 7186 9950

St Brides Partners Limited

PR – Melissa Hancock & Isabel de Salis

Tel: +44 (0) 20 7236 1177

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Erris Resources Plc – Operational Update and Board Change

Erris Resources plc, the European focused mineral exploration company with a portfolio of zinc and base metals projects in Ireland and gold projects in Sweden and Finland, is pleased to provide an operational and corporate update on its activities, including a change to its board of directors.



·    Underground and surface drilling at the Abbeytown Project in Q4 2018 demonstrated that mineralisation extends 375 metres south from the old underground workings to ERAB005, the most southerly hole drilled by Erris

·    Soil sampling programme completed in February 2019 to identify new targets and demonstrate that this mineralisation corridor has the potential to extend 900 metres to the Ox Mountains fault south of Abbeytown

·    Metallurgical test work ongoing on samples taken from Abbeytown underground drilling

·    Preliminary prospecting of geophysical targets underway on the new Galway Project licences

·    As part of the Centerra funded programme in Finland, several targets are under review, with a number of Reservation Permit applications already submitted

·    Maintaining a disciplined approach to expenditure and well-funded for 2019

·    Identifying and reviewing new opportunities that show synergies and the potential to add value to the Erris portfolio


Erris Resources CEO, Anton du Plessis, said, “2019 has started well, with activity on a number of our projects.  At Abbeytown, work has focussed on identifying new targets further south of the mine site towards the Ox mountain fault approximately 1.2km away.   The team has been running a soil sampling programme with the aim of upgrading geophysical targets.   This is looking promising and could increase the overall potential of the project. Our partnership with Centerra, which gives us exposure to exploration upside at no cost, has seen us focus on two new districts in Finland where several targets have been identified and are under review.  Additionally, we are reviewing several new projects that fit the Erris model. These are opportunities that either have defined mineral resources or show significant exploration upside and we want to ensure that any asset we bring into the Company delivers real shareholder value. We look forward to updating the market on our progress in due course.”


Further Information


At the Company’s Abbeytown zinc-lead-silver-copper project in County Sligo, Northwest Ireland, the results of the underground work programme, announced on 30 January 2019, extended the mineralisation south to join with the surface drilling completed last year expanding the overall size and potential of the mineralised system.  The programme returned a number of high-grade drill intersections including:

·    10.85% Zn & Pb combined and 31.1g/t Ag over 4.0m in ERAB001

·    15.63% Zn+Pb combined and 90.68 g/t Ag over 4.1m in ERAB005

·    9.14% Zn+Pb combined with 92.89 g/t Ag over 4.5m in ERAB007 and

·    14.37 % Zn+Pb combined and 67.25g/t Ag over 2.0m in ABUG009 from underground


Soil sampling work in a new target area near the Ox Mountains Fault has been completed; results are pending and expected to be reported before the end of Q1 2019.  A metallurgical study involving a bench flotation test and a bond mill test on material collected from the Abbeytown mine is also being undertaken by Wardell Armstrong. This will define the potential zinc, lead and silver recoveries and allow us to start looking at the economic potential of the project.   The key benefit of the Abbeytown project is that the mineralisation is essentially outcropping with good existing underground development allowing for a low-cost start to any future mining activity.


Preliminary prospecting of geophysical targets on the Company’s Galway project is underway. These licences are 15-40km from the previously producing Tynagh Mine, adjoin a large land package owned by Boliden and have excellent potential for the discovery of base metal mineralisation.


Sweden and Finland

Erris Resources and its partner Centerra Gold KB Inc (“Centerra”) have agreed that, in Finland, the strategic alliance will focus its efforts on two areas: the Laivakangas district in Central Finland; and the Central Lapland Greenstone belt in Northern Finland.  Within these districts, several targets are under review. A number of Reservation Permit applications have been submitted with one already granted. Under the Finnish Mining Act, an area of land can be reserved for a period of up to two years while an exploration permit application is being prepared.


In Sweden, Erris Resources is also actively reviewing potential targets.  As part of the strategy of efficiently turning over exploration ground, the Company has decided to relinquish the Nordgruvan and Hornkullen licences as these were not considered sufficiently prospective to warrant further work. 


Board and Cost Reduction

In line with current market conditions, the Company has been reducing its costs across all areas and, as such, Andrew Partington has agreed to step down from his position as Non-Executive Director effective from 28 February 2019. The Company will still maintain contact with Andrew and his links to the North American markets. The Board would like to thank Andrew for his valuable contribution to the Company and wishes him well in his other endeavours.  Jeremy Taylor-Firth will assume Andrew’s position as Chairman of the Audit Committee and Graham Brown will also join the Audit Committee.         


The Company maintains a disciplined approach to expenditure and as such is well funded for the remainder of 2019.


The technical information in this announcement has been compiled on behalf of Erris by Aiden Lavelle. Aiden Lavelle (BSc (Hons), MSc, MIGI, P.Geo ) is Erris’  chief operating officer. Mr Lavelle has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking to qualify as a Competent Person in accordance with the guidance note for Mining, Oil & Gas Companies issued by the London Stock Exchange in respect of AIM Companies, which outlines standards of disclosure for mineral projects. Mr Lavelle consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.




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


Anton du Plessis /Aiden Lavelle

Erris Resources plc

+353 (0) 94 902 8481

David Hart/Liz Kirchner

Allenby Capital (Nominated Adviser)

+44 (0) 20 3328 5656

Erik Woolgar

Shard Capital (Joint Broker)

+44 (0) 20 7186 9952

Andy Thacker

Turner Pope Investments (TPI) Ltd (Joint Broker)

+44 (0) 20 3621 4120

Isabel de Salis/Gaby Jenner

St Brides Partners (Financial PR)

+44 (0) 20 7236 1177



Erris Resources plc (EPIC: ERIS.L) is an AIM quoted, European focused, discovery driven exploration company.  Supported by Canadian mining majors, Osisko Gold Royalties, which has a 18.9% interest in the Company, and Centerra Gold KB Inc, a wholly owned subsidiary of TSX listed Centerra Gold Inc., the Company has an established portfolio of zinc and base metals assets in Ireland and gold projects in Sweden, which it is looking to further build on.  Led by a highly qualified team with extensive corporate and sector experience, Erris Resources’ strategy is to create shareholder value through commercial discovery of base or precious metal assets in proven mineral districts and in favourable European jurisdictions.



This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

Horizonte Minerals Plc – Q1 2019 Shareholder Update

Horizonte Minerals Plc, (AIM: HZM, TSX: HZM) (‘Horizonte’ or the ‘Company’), the nickel development company focused in Brazil, is pleased to provide the following update to shareholders from CEO, Jeremy Martin.



·    Araguaia ferronickel project (‘Araguaia’) Feasibility Study (‘FS’) completed in Q4 2018 delivering robust economics;

·    Further upside potential with Stage 2 expansion at Araguaia doubling annual nickel production;

·    Construction Licence recently granted by the Brazilian Pará State Environmental Agency (‘SEMAS’);

·    Advancing project financing options for Araguaia;

·    Vermelho nickel cobalt project (‘Vermelho’) Pre-Feasibility Study (‘PFS’) underway;

·    Nickel showing positive fundamentals with midterm consensus pricing of US$16,792/tonne (‘t’) Ni for 2022; and

·    Brazil economy set for growth in 2019 and 2020 with GDP set to increase 2.4% and 2.3% respectively.

Jeremy Martin, Chief Executive of Horizonte, commented:

“The Company made further significant progress in the December quarter as we work towards developing the Araguaia ferronickel project and move towards becoming a nickel producer. A major milestone was the release of the FS demonstrating robust economics on the single line RKEF process plant which also includes the option to double annual nickel production through the Stage 2 expansion. The Stage 2 expansion case returned an estimated post-tax Net Present Value[1] (‘NPV’) of US$741 million[2] and Internal Rate of Return (‘IRR’) of 23.8% using the FS base case nickel price forecast of US$14,000/t[3]. In January 2019, following completion of the FS, the Company was awarded the Construction Licence for the project, which subject to funding, allows development to commence on the RKEF process plant and associated infrastructure.  It is important to note that Araguaia does not produce tailings and does not have a tailings dam so is not affected by the recent ban on new upstream tailings dams in Brazil.

“Work recently commenced on the PFS for our Vermelho nickel cobalt project. Snowden Mining Industry Consultants have been contracted to produce the mining schedules and act as overall study manager, in addition the Simulus Group based in Perth will provide detailed design information and costings for the Vermelho process flow sheet and together with our local Brazilian engineering partners, will deliver associated infrastructure to the project. In parallel we have our teams working on the environmental and social permitting, and new terms of reference have been submitted to SEMAS, the Brazilian Pará State Environmental Agency to advance Vermelho’s Environmental Impact Assessment.

“Horizonte holds two Tier 1 assets in terms of size and grade; the development-ready Araguaia ferronickel project and the Vermelho nickel-cobalt project. Our portfolio is therefore well placed at a time when demand in stainless steel and electric vehicle markets is increasing and outstripping new nickel supply coming online.

“2019 is set to be an exciting year for the Company with multiple value drivers for shareholders all set against a positive back drop of the broader nickel market and growing Brazilian economy.” 

Detailed Information

Nickel Markets

Having fallen from 470,000 tonnes to approximately 200,000 tonnes at present, nickel inventories on the LME have continued to drop and are now at their lowest levels in five years. Significant new supply is required for the stainless-steel market which is growing at around 5% year on year, with further additional new demand driven from the Electric Vehicle (‘EV’) battery sector. Whilst the physical number of EVs on the roads throughout the world remains relatively low at 3 million cars today, forecasts for the acceleration of adoptions of EV’s vary from 20 to 40 million cars on the roads by 2030, representing an estimated approximate 10-fold increase.

At present it is difficult to see where significant new supply to meet this demand is going to materialize from.

A recent market assessment by Bloomberg New Energy Finance (‘NEF’) points to nickel supply tightness creating growing anxiety as battery metal consumers look to draw greater volumes of nickel from inventory to satisfy demand; “Nickel is now the metal creating the most concern in the battery manufacturing community”, added NEF analyst, James Frith.

Cathode market leader Umicore SA also notes that supply constraints could push nickel prices up to as much as US$20,000-US$25,000/t.

Glencore have forecast that growth in nickel demand would need to fall to -1% for the nickel market to eliminate the current structural deficit which is leading to the draw down in nickel stocks on an ongoing basis. 

As we write this, nickel prices remain around US$12,500/t. But the continued draw down of global Nickel inventory points to a stronger nickel price environment over the mid-term.

Nickel is a favourite commodity pick amongst multiple banks/analysts for 2019 and 2020 with all of the large banks predicting notable price increases by 2021, including:

·    UBS: US$16,500/t in 2021

·    Morgan Stanley: US$16,500/t in 2021

·    Scotiabank: US$17,600/t in 2021

·    Macquarie: US$17,000/t in 2021

Araguaia Ferronickel Project (Araguaia)

In October of 2018, we released the FS for Araguaia. The base case of the FS uses a flat price of US$14,000/t nickel. The initial 28-year mine life generates free cash flow after taxation of US$1.6 billion with sufficient Mineral Resources beyond the initial 28 year mine life. The financial model indicates an estimated post tax- NPV of US$401 million and IRR of 20.1%.  At operational levels, Araguaia is expected to produce an average of 14,500t of nickel contained within approximately 52,000t ferronickel per annum, utilising proven RKEF technology currently used at over 40 mines around the world.  Using a consensus price of nickel of US$16,800/t, the post tax NPV increases from IUS$401 million up to US$740 million and the IRR from 20.1% up to 28.1%. Another attractive key metric of the project is the C1 cash cost, which, at US$8,193/t Ni, places Araguaia in the lowest quartile for nickel-laterite projects globally, highlighting Araguaia’s robust and competitive operating costs.

The FS for Araguaia was designed to allow for a second production line. In December last year we filed the 43-101 report for Araguaia including the FS results and the potential upside which could be realised from doubling production by adding a second line. At 29,000/t per annum production of nickel, the expanded project would become globally significant production unit. Applying the FS base case nickel price of US$14,000/t, the Stage-2 expansion demonstrates a step-change in the economics of Araguaia: increasing cash flows after taxation from US$1.6 billion to US$2.6 billion; and NPV from US$401 million up to US$741 million. The expansion would require no additional upfront capital as the second line would be funded through reinvestment of free cash flows generated from the existing operation.

Araguaia is well positioned as one of only a few construction ready nickel projects in the world. With the average time from initial discovery to first production approximately 8 to 10 years for most mining operations, Araguaia represents a unique opportunity to capitalise on the fundamentals of the nickel market as highlighted above. 

The next step to move Araguaia into the construction phase is a project finance package. We appointed Endeavour Financial as our financial advisors, focusing on the debt and offtake development package for Araguaia. Endeavour Financial is a well-regarded firm with a strong track record of success in the mining industry, specialising in arranging multisource financing for single asset development companies, an example being the recently closed US$750 million financing package for Lundin Gold’s Fruta del Norte project in Ecuador.

Vermelho Nickel Cobalt Project (Vermelho)

The Vermelho project was acquired by Horizonte from Vale in early 2018, located in the southern part of the Carajás mining district approximately 140km from Araguaia North.  Vale completed a full Feasibility Study on the project and it was scheduled for construction in 2006. Following the acquisition Horizonte released a 43-101 compliant Mineral Resource estimate, in the Measured and Indicated category, the project contains 167.8 million tonnes grading 1.01% nickel and 0.06% cobalt (at 0.9% nickel equivalent cut off), estimated to contain 1.68 million tonnes (3,700 million lbs) of nickel and 94,000 tonnes (207 million lbs) of cobalt.  The Mineral Resource Estimate places the Vermelho project as one of the largest, highest grade undeveloped laterite nickel – cobalt resources globally. 

One of the key factors behind the acquisition of this quality resource was its location and close proximity to Araguaia. The combined resource base is high-grade, scalable and gives flexibility to have two potential operating centres, one at Araguaia as shown in the recent FS and one at Vermelho.  Horizonte now has the potential to develop an annual nickel production of 40,000 to 50,000 tpa nickel per year from Araguaia and Vermelho within this 100% owned, consolidated nickel district.

There are several phases of work currently underway at Vermelho, the first is to demonstrate upgrading the mixed hydroxide product (MHP) to nickel and cobalt sulphate suitable for use in the evolving EV battery market.  The second phase will utilise the high grade saprolite material to produce ferronickel via the same RKEF flow sheet as developed at Araguaia.  This work will then feed into a PFS to demonstrate the economic viability of Vermelho on a lower throughput capacity and capital cost than the operation that Vale had planned to develop.  Additionally, work on the ground has commenced with updated environmental and social base line data collection as part of the permitting process.


We have always championed Brazil as a stable, established jurisdiction for operations. In particular the Pará state is pro mining with the Carajás mining district hosting a number of world class mines, combined with prospective geology and well-developed infrastructure, all key factors to allow the low-cost development of new projects. The Company has received positive government and community support for Araguaia, culminating in the recent award of the Construction Licence. Another new positive development is the up lift in the Brazilian economy.  Brazil has tightened control over inflation rates, which have decreased from 8.8% in 2016 to 3.6% in 2018. The Country has also taken a series of measures aimed to improve fiscal responsibility, reduced government spending and increased direct foreign investment.

In 2018, Brazil held a presidential election in which the front-runner and now president, Mr. Jair Bolsonaro, had committed to “open the economy” to foreign investors, adopting a pro-business agenda and taking steps to improve investor confidence in Brazil. Within this scenario, consumer confidence is at its highest level since 2014 prompting Forbes to say that “Brazil is the best stock exchange to invest in right now” (8th January 2019) and the Bovespa Stock exchange hit its highest point since inception in February 2019.

Following the tragic accident on Friday 25th January at Vale’s Feijão iron ore mine at Brumadinho, Minas Gerais, the Horizonte team in Brazil and UK send our sincere condolences to those affected by the event.

It is important to highlight that Araguaia, located approximately 1,800 kilometres north from Vale’s Feijão iron ore mine, does not produce tailings and has no waste dams on the site. Araguaia, in line with many other global ferronickel operations, plans to produce slag in dry granulated pellets which will be stockpiled and potentially used in road fill as a binder in or turned into other building products such as blocks or cladding sheet material. 


Detailed Information

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


Horizonte Minerals plc

Jeremy Martin (CEO)

+44 (0) 203 356 2901

Numis Securities Ltd (NOMAD & Joint Broker)

John Prior

Paul Gillam

+44 (0) 207 260 1000

Shard Capital (Joint Broker)

Damon Heath

Erik Woolgar

+44 (0) 20 186 9952

Tavistock (Financial PR)

Gareth Tredway

Annabel de Morgan

+44 (0) 207 920 3150


About Horizonte Minerals:


Horizonte Minerals plc is an AIM and TSX-listed nickel development company focused in Brazil. The Company is developing the Araguaia project, as the next major ferronickel mine in Brazil, and the Vermelho nickel-cobalt project, with the aim of being able to supply nickel and cobalt to the EV battery market. Both projects are 100% owned.


Except for statements of historical fact relating to the Company, certain information contained in this press release constitutes “forward-looking information” under Canadian securities legislation. Forward-looking information includes, but is not limited to, the ability of the Company to complete the Acquisition as described herein, statements with respect to the potential of the Company’s current or future property mineral projects; the success of exploration and mining activities; cost and timing of future exploration, production and development; the estimation of mineral resources and reserves and the ability of the Company to achieve its goals in respect of growing its mineral resources; the ability of the Company to complete the Placing as described herein, and the realization of mineral resource and reserve estimates. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, and are inherently subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to risks related to: the inability of the Company to complete the Acquisition as described herein, exploration and mining risks, competition from competitors with greater capital; the Company’s lack of experience with respect to development-stage mining operations; fluctuations in metal prices; uninsured risks; environmental and other regulatory requirements; exploration, mining and other licences; the Company’s future payment obligations; potential disputes with respect to the Company’s title to, and the area of, its mining concessions; the Company’s dependence on its ability to obtain sufficient financing in the future; the Company’s dependence on its relationships with third parties; the Company’s joint ventures; the potential of currency fluctuations and political or economic instability  in countries in which the Company operates; currency exchange fluctuations; the Company’s ability to manage its growth effectively; the trading market for the ordinary shares of the Company; uncertainty with respect to the Company’s plans to continue to develop its operations and new projects; the Company’s dependence on key personnel; possible conflicts of interest of directors and officers of the Company, the inability of the Company to complete the Placing on the terms as described herein, and various risks associated with the legal and regulatory framework within which the Company operates. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

[1] NPV calculated using 8% discount rate

[2] USD/BRL 1/3.5 exchange rate applied for life-of-mine

[3] Wood Mackenzie Short term forecast – refer to market section of Araguaia NI 43 -101: https://horizonteminerals.com/news/en_20181212_araguaia_ni_43-101_technical_report.pdf 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.