Canico Resource Corp.
TSX : CNI

Canico Resource Corp.

September 20, 2005 09:01 ET

Canico Resource Corp.: Installation Licence Received for Onca Puma

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 20, 2005) - Canico Resource Corp. (TSX:CNI) is pleased to announce that it has received the Installation Licence, (LI), for its Onca Puma project in Para State, Brazil. This licence authorizes Canico's Brazilian subsidiary, Mineracao Onca Puma Ltda, to proceed with construction of a mine and related facilities at the project. The LI was issued by the Para State environmental agency, (SECTAM) further to the Preliminary Environmental Licence (PEL) issued by SECTAM last year which determined that the project is feasible from an environmental standpoint. The issue of the licence involved a detailed review of Canico's development plan and the satisfaction of all of the conditions to the LI which were contained within the PEL.

The final outstanding environmental licence which will be required in connection with the project is an Operating Licence, and this will be issued if and when construction is completed in accordance with the LI and all operating protocols, such as mine safety standards, environmental protection policies and other similar operating standards have been established in compliance with the law and the PEL and the LI.

All required steps necessary to apply for mining concessions for the Onca Puma deposits and surrounding areas have also been completed. The application for these concessions, including all required supporting materials, have been accepted for filing by the DNPM, Brazil's federal mining authority. A review period of 90 days is prescribed for consideration of this application. Canico expects the concessions to be issued within the prescribed 90 day timeframe.

"With the award of our Installation Licence, we have achieved yet another major milestone on the way to production," said Michael Kenyon, President & CEO of Canico. "This event once again showcases the exceptional, talented and professional people we have, both in Canada and in Brazil, who are executing our plan to develop Onca Puma with impressive speed and to the highest standards. We are very proud of how far we have come in the three short years we have been at work on this project. We continue to demonstrate that Onca Puma is marching efficiently towards early production, and is recognized as one of the best undeveloped nickel deposits in the world."

Canico is a Canadian-based junior resource company focused on the development of the Onca Puma nickel laterite project in Para State, Brazil.

CANICO RESOURCE CORP.

J. Michael Kenyon, President & Chief Executive Officer

Cautionary Notices

This News Release includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 of the United States. Other than statements of historical fact, all statements in this release, including, without limitation, statements regarding potential mineralization and resources, estimated or potential future production, potential ranking amongst nickel producers, and future plans and objectives of the Company, are forward-looking statements that involve various known and unknown risks, uncertainties and other factors. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date of this announcement. Important factors that could cause actual results to differ materially from the Company's expectations include, among others, the ongoing results of current exploration activities, conclusions of any scoping studies, pre-feasibility or feasibility studies, changes in project parameters, and future metal prices, as well as those factors discussed under the heading "Risk Factors" and elsewhere in the Company's documents filed from time to time with the Toronto Stock Exchange, the TSX Venture Exchange, Canadian securities regulators and other regulatory authorities. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by this notice.

Contact Information

  • Canico Resource Corp.
    J. Michael Kenyon
    President & Chief Executive Officer
    (604) 669-9446
    (604) 669-9447 (FAX)
    www.canico.com