Canico releases Onca drill results

Vancouver — Canico Resource (CNI-V) has tabled results from the first 77 holes in the company’s ongoing drill program at Onca ridge, at its Onca-Puma nickel laterite project in Para State, Brazil.

The company reports that nickel assays are in line with, or exceed expectations, based on previous work. Highlights include;

• Hole 3017 cut 10.55 metres averaging 2.10% nickel and 0.064% cobalt, starting 26 metres down-hole.
• Hole 3030 cut 12.10 metres averaging 2.64% nickel and 0.095% cobalt, stating 13.65 metres down-hole.
• Hole 3034 cut 22.15 metres averaging 2.22% nickel and 0.064% cobalt, starting 10.2 metres down-hole.
• Hole 3047 cut 13.90 metres averaging 2.71% nickel and 0.134% cobalt, starting 31.6 metres down-hole.
• Hole 3051 intersected 23.4 metres averaging 2.45% nickel and 0.069% cobalt, starting 4 metres down hole.
• Hole 3059 cut 10.20 metres averaging 1.80% nickel, and 0.177% cobalt, starting 12.6 metres down hole.

“We are just at the beginning of our campaign on Onca and the results are excellent,” said Michael Kenyon, President and CEO of Canico. “Our work at Puma resulted in a significant increase in the Puma mineral inventory over the historical resource estimates. We think our chances of significantly increasing the Onca resources are outstanding.”

Canico plans to drill a total of 500 widely spaced drill holes along the Onca ridge. Closer spaced drilling for a feasibility study will be performed later. The Onca target has a total prospective strike length of about 20 km and hosts a number of near surface, blanket-like nickel laterite zones. The reported holes were collared along 2 km of strike length along the ridge top.

Consulting Engineers, Watts, Griffis and McOuat, pegged inferred resources at Onca at 22.6 million tonnes grading 2.1% nickel. About 45% of the old drill holes and test pits which were used to calculate the resource stopped in nickel mineralization assaying over 1.5% nickel.

Canico intends to drill deeper holes in an attempt to asses the entire mineralized profile at Onca. The company also intends to test the extensions of the resource which are covered by silica caps similar to the cap which masked the mineralization at the nearby Puma East Plateau zone.

The results of Canico’s initial program at Onca will be used in a new resource calculation.