Exploration Insights by Robert Tyerman

Brazil-focused Horizonte Minerals hopes to establish a 60 million-tonne nickel resource at its Araguia project next March.

The AIM-quoted company, which secured the project in an all-share deal with overstretched Canadian miner Teck, suggests that estimate will shortly afterwards give way to an updated 100 million tonnes at a relatively high grade of 1.3 per cent. Teck now holds 50 per cent of London-based Horizonte, which hopes for a pre-feasibility study on the project, where only half the 12 target areas have been drilled, by mid-2011.

A fundraising is then conceivable, though a potential further estimated resource upgrade to 150 million tonnes could sweeten the pill. Horizonte also has several gold projects in Brazil, including a strategic partnership with Anglo Gold Ashanti and an exploration deal with Troy Resources.

Teck’s stake adds spice to Horizonte’s shares, which performed lamentably after their 30p float in 2006, falling to 7p within the past year. Highlighted by Growth Company Investor at 10p in August, the shares have moved up to 12.5p and should rally further if project progress is maintained.

Argie cheer at Mariana
Drilling at AIM-quoted Mariana Resources’ Las Calandrias project in Argentina has shown three new high-grade gold intersections. The company says the intersections show grades ranging from 30.5 to 34.1 grammes of gold per tonne of ore, with one 0.95-metre length of 139.5 grammes a tonne, while accompanying silver grades range from 41 to 145 grammes a tonne.

Mariana, steered by managing director John Sutcliffe, holds a portfolio of gold, silver and copper projects in Argentina and Chile. These include 70 per cent of the Sierra Blanco silver and gold prospect, 49 per cent of the Los Amigos joint venture and a 160,000-hectare land package, all in the mineral-rich Deseado Massif in southern Argentina’s mining-friendly Santa Cruz province.

Recommended by Growth Company Investor in 2008 at 4.75p, Mariana shares have now reached 39.75p. Partial profit-taking might be prudent, but there should be more growth to come.

Support for silver
Mexico-focused Arian Silver has raised £3.9 million at 18p for drilling at its promising San Jose project. Chief executive officer Jim Williams says the AIM-quoted company is taking advantage of a rising silver price to accelerate drilling at San Jose, which recently went into production, in the mineral-rich state of Zacatecas.

The company expects cash flow this year from San Jose, which, after drilling only 10 per cent of its strike length, it already estimates could hold a potential resource of 43 million oz of silver at 250 grammes of silver per tonne of ore. After collapsing from 51.5p in 2006 to 2.63p, the shares, recommended by Growth Company Investor at 5.75p in April, now stand at 19.75p, where partial profit-taking could be prudent.

Nighthawk reviews projects
US-focused Nighthawk Energy is reviewing its projects after a fourfold turnover increase, unchanged losses and the departure of combative ex-boss David Bramhill. The company, now headed by former commercial director Tim Heeley, lost $1.28 million (£710,000) in the year to June on revenue up 332 per cent to $2.1 million from trebling production at its Revere project in Kansas to nearly 30,000 barrels of oil equivalent.

Nighthawk, which spent nearly £19 million last year on projects, has hired oil consultant Gaffney Cline to assess its leading venture, Jolly Ranch in Colorado. The group, with £4.5 million cash and a new £25 million equity finance facility from investment concern Evolution’s Darwin Strategic arm, is 50-50 partner with operator Running Fox Petroleum.

Floated at 25p in 2007 and now 13.5p, down 30p from the past year’s high, the shares are for gamblers only.