OURILANDIA, Brazil In-fill and step-out drilling continues at CANICO RESOURCE'S Ona-Puma nickel laterite project. Drills are turning on the Puma West zone to move the resources to a higher level of confidence. Work at Ona continues towards finishing the initial pass of exploring the ultimate size of the deposit, and infill drilling will proceed immediately. Some 35,000 m of drilling will follow in the definition phase for both deposits. As well, some holes will be drilled for geotechnical purposes around the proposed plant site.
The Ona-Puma deposit is shaping up to be one of the world's highest grade undeveloped laterite deposits. In January 2003, Canico released an estimated inferred resource at Puma West of 33 million tonnes grading 2.2% Ni. The Ona deposit contains total inferred resources of 22.6 million tonnes at 2.1% Ni. Both are low-iron.
Canico is proceeding with engineering and a full feasibility study to be completed in the second half of 2004. The studies will include estimates of capital and operating costs for a mine and conventional nickel smelter. The options of single- or double-line production either for ferronickel or nickel matte will be considered.
Pictures and detailed information about the project are available at www.canico.com