PARA STATE, Brazil HATCH LTD. has delivered the scoping study on CANICO RESOURCE's Onca-Puma nickel property in Brazil. The study outlines four mining plans and the estimated costs of each. These are tabled in the Nov. 25 news release posted at www.canico.com.
The study projects a mine life of about 89 years using a single-line rotary kiln/electric furnace processing technology or 45 years if a two-line plant were built. Such conventional pyrometallurgical treatment would probably recover 90% of the contained nickel. Inferred resources considered for the study total 109.82 million tonnes grading 1.80% Ni. Depending on the scenario, Hatch suggested capital costs ranging from $556 million to $956 million (+30%/20%). Either way this mine development would be no small undertaking.