The PFS anticipates average annual production of 25,000 tonnes of nickel and 1,250 tonnes of cobalt with a C1 cash cost of US$8,020/t, which would define Horizonte Minerals as a "low cost producer".

Located in Brazil's Para State, the project is estimated to yield an after tax net present value of $1.7 billion at a 8% discount rate and an internal rate of return of 26% with a base case nickel price of $16,400/t over a 38-year mine life, following an initial capital cost estimate of $652 million.

"I am delighted to deliver the pre-feasibility study for the Vermelho nickel-cobalt project which represents another significant milestone delivered by the company this year," CEO Jeremy Martin said.

"The study now positions Horizonte as a multi-asset nickel developer with a combined NPV in excess of US$2.5 billion at current nickel prices across the Araguaia and Vermelho projects."

Martin said the focus following successful completion of the PFS would centre on identifying partners, securing funding and advancing the project by undertaking a full feasibility study.