BRAZIL The feasibility study of the large Onca Puma laterite nickel project in the Para State is complete, according to Vancouver-based CANICO RESOURCE CORP. The study covered development of an open pit mine and conventional pyrometallurgical smelter with a rotary kiln electric furnace.
The initial capital cost of the project will be US$762 million to build a mine and plant that will handle 1.28 million tonnes of ore/year and will start up in 2008. Another US$352 million will be needed to reach a production rate of 2.56 million tonnes of ore annually.
The Onca Puma deposit has proven and probable mineral reserves of 77.7 million tonnes grading 1.80% Ni (at a cut-off grade of 1.10%). That makes it, according to Canico, one of the world’s best-grade, undeveloped deposits of its kind. The deposit was discovered in the 1970s, and Canico acquired 100% of the property from Inco in 2003.
Details of the feasibility study can be viewed at www.Canico.com.