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Minews Story



Date : November 5, 2003



The Ex-Sutton Resources Team Are On Track To Duplicate Success With Canico.


Michael Kenyon was in London a couple of weeks ago to bring investors up to date with Canadian listed Canico and its Onca Puma nickel project in Brazil. Apart from the fact that nickel is still flavour of the month, this project is considered by several leading brokers in Canada to be a world class project in the making. Unusually Michael Kenyon and his team have been here before as they discovered and developed the Bulyanhulu gold deposit in Tanzania before selling it on as part of Sutton Resources to Barrick for US$325 million three years ago. Not that things have gone all their way with Onca Puma. When they visited London in April 2002 they were struggling to raise US$22.5 million in order to take up the option from Inco to acquire the deposit.

In the event Michael Kenyon had to ask for an extension of the payment terms. This was given; the payment was made earlier this year when raising capital for mining projects became easier; and a scoping study is expected later this month. The deposits on the Onca Puma property were first discovered by Inco in the 1970s and when Canico did its deal the resource was estimated at just under 50 million tonnes grading 2.3% nickel and 0.90% cobalt. Since then a major drilling programme has been carried out and the resource has been enlarged to 104.4 million tonnes grading 2.15% nickel and 0.11% cobalt. As a result it can now be claimed to be one of the world’s highest grade undeveloped nickel laterite deposits and there is plenty of potential for its size to increase as it is open laterally and at depth

A scoping study was carried out in 1997 which assumed that the deposits could be exploited using conventional smelting technology. Based on this the project had a net present value of US$107 million assuming a nickel price of US$3.0/lb and a 10 per cent discount rate. The current scoping study, due to be released shortly, is evaluating various development options for Onca Puma so that it can advance to a feasibility study which should be ready before the end of next year. The basic choices are between producing nickel matte which would be expensive, but Inco would purchase all the matte with payments based on a sliding scale based on the nickel price, or ferronickel for which there is great demand and Inco would help on marketing.

The answer seems to be the ferronickel route using pyro-metallurgical methods. The project could be developed in two phases. The first would involve a production facility capable of treating 1.25 million tonnes of ore a year and this could be upgraded to 2.5 million tonnes a year in the third year. At the moment the timetable looks like production should start before the end of 2006. It is impossible at this stage, however, to go firm on any of this. Stockbrokers RBC Capital has estimated that development of the 1st Phase would cost US$600 million and that 70 per cent of this would come from bank loans. This would leave Canico to find US$180 million which is a just about half its current market capitalisation Not an easy task, but the company has some hefty shareholders and the management has an excellent record.

The answer may be for the company to raise a significant proportion of this money before the bankable feasibility study is completed. Such a move would bring with it two advantages. First, it could start work on development work such as detailed design which would help to bring forward the anticipated date for production to start. And second it would persuade potential lenders that the money was virtually in the bag. The alternative, of course, would be to bring in a major partner. Clearly Inco with its 18 per cent interest already in Canico would be first in the queue. Michael Kenyon, however, says that the preferred option would be for his company to develop the mine itself and the sums certainly confirm that this route has plenty of attractions. Either way it is a company worth watching.


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News from Reuters

Canico Eyes $500 Million Cost to Build Nickel Mine


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19:39 EDT Monday, September 29, 2003

By Nicole Mordant

VANCOUVER, British Columbia (Reuters) - Canadian mining junior Canico Resource Corp. , which owns one of the world's prized nickel deposits, said on Monday it expects to sink $500 million to $600 million into building a mine and plant at the site in Brazil.

Canico's chief executive, Michael Kenyon, said an independent scoping study, due next month, would provide a clearer idea of the capital cost of developing Onca-Puma, a big-tonnage, high-grade nickel laterite deposit whose expanding size has propelled the firm's stock by 350 percent this year.

"I don't see why the cost would be much different from Loma," Kenyon told Reuters in an interview.

Anglo American Plc's Loma de Niquel mine in Venezuela, one of the last nickel laterite facilities built, cost around $525 million, Kenyon said.

Kenyon expected operating costs to range between $1.35 and $1.60 a pound. The bottom of the range reflects the world's lowest-cost nickel laterite producers, while the upper end represents the likes of Inco Ltd.'s PT Inco facility in Indonesia.

The mine could start production in 2006 or 2007 with potential output of 50 million pounds (22,679 tonnes) of nickel a year. A possible later expansion could double production.

Nickel is one of the hottest topics in metal markets at the moment. It has jumped 45 percent in value this year on gathering expectations the next three years will show a shortage of new supply to meet growing world demand.

The market has high expectations of Canico, whose management team, previously with Sutton Resources, financed and started developing Tanzania's Bulyanhulu gold project. Sutton was later sold to Barrick Gold Corp. for $353 million.

JUNIOR FINANCING

Although successful so far at keeping its shareholders happy, Canico, as a small exploration company with a market capitalization of about $270 million, has work ahead of it securing debt finance from banks for the project.

Kenyon is just back from a trip with analysts and bankers to the project in Brazil's Para state. Canico started the wooing process early, although funding is likely to be approved only after a feasibility study is completed, in late 2004.

The 100 million tonne-plus resource offers the possibility of a two-line plant but Kenyon says there is little chance banks will finance anything more than a single line facility, expected to process 1.25 million tonnes of ore a year.

"We are just not that creditworthy major company," he said.

That said, Canico has a heavyweight in its corner. It is nearly 20 percent owned by Toronto-based Inco. The western world's biggest nickel producer sold Onca-Puma to Canico and has the right of first refusal on the property if the Vancouver-based firm puts it on the block.

Drilling results last month estimated Onca-Puma, at a 1.5 percent nickel cut-off grade, contains a total inferred resource of 104 million tonnes, grading 2.15 percent nickel and 0.11 percent cobalt.

This tripled the previous resource estimate, sending Canico's shares into orbit. They hit a new high of C$13.75 earlier this month. But on Monday the stock closed down 43 Canadian cents on the Toronto Stock Exchange at C$12.65.

($1=$1.35 Canadian)

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Date : Aug 27, 2003



Jubilant Team At Canico Resources Reckon They Are Close To Developing A World Class Nickel Mine At Onca-Puma.


The last time Minews met Michael Kenyon and Jonathan Rubenstein of Canico Resource Corp was in April 2002 At that time the Canico share price was around C$3 and they were not finding it too easy to raise funds for the Onca -Puma nickel project in Brazil. This year things have changed significantly as it has become clear that it is a world class deposit and the shares are now over C$12. There is no intention here of Minews trying to reinvent himself as a share tipster, but just to point out the pace at which things are moving in the mining sector, and particularly in nickel. As Our Man in Oz pointed out today, “Nickel is fascinating. Reminds me of the 66-68 nickel boom which started with a strike at Sudbury, and helped launch WMC at Kambalda.” Nothing new about a nickel boom then, but it also points up the shrewd timing of the Canico team who previously made squillions at Sutton Resources which they built up from a market capitalisation of around US$15 million back in 1990 to the US$325 million paid by Barrick Gold three years ago.

A year or so later they agreed to acquire Onca -Puma from Inco and when last in London were in the process of raising the necessary C$22.5 million to exercise the option. As a result Inco was going to end up with an 18 per cent interest in Canico and two directors on the board. The big Canadian nickel producer had discovered Onca- Puma in the 1970s, but had clearly not given it much priority as when Canico acquired it the near surface deposit had only advanced as far as having an inferred resource of 50 million tonnes grading 2.3% nickel and 0.90% cobalt. However it is worth pointing out that this could warrant a mine with a forty year life producing over 25,000 tonnes of nickel a year from what was claimed as the highest grade undeveloped nickel mine in the world.

Not a bad start , and it gets better as s scoping study carried out in 1997 had assumed that the deposits could be exploited using conventional smelting technology. This was not just guesswork as Inco had done plenty of metallurgical testwork and has agreed to process and/or market all nickel products and also put its technical expertise, which is great, behind the project. Canico’s plan in April 2002 was to start drilling by mid year and complete a bankable feasibility study by the end of 2004. First, however they had to get the money together to exercise the option. This was eventually achieved in February this year when two placements at C$3.31/share raised C$25.2 million and the deal was completed.

Four months later Canico announced that it had drill tested about 17 kilometres of the prospective 20 kilometre strike length of the Onca ridge. The results had confirmed that the mineralization at Onça was thicker, more continuous and considerably more extensive than previously estimated. The new inferred resource calculations have now been announced nad have been the driving force behind the share price in recent weeks. At a 1.5 per cent nickel cut-offgrade the Onca resource is now 69.85 million tones grading 2.12% nickel and 0.123% cobalt and at Puma there are estimated to be 34.6 million tones at 2.21% nickel and 0.07% cobalt. The total inferred resource at the two nickel laterite deposits is therefore 104.4 million tones grading 2.15% nickel and 0.105% cobalt which is well above most expectations

The Onca estimate is based on the results of 485 diamond drill holes and the revision to the Puma estimate is based on the results of an additional 24 diamond drill holes west of the main Puma ridge. This new resource estimate will now be used in a scoping study which should be completed later this year. This will be aimed at establishing order of magnitude parameters for building and operating a nickel mine at Onca-Puma prior to the full feasibility study. At the moment an appropriate cut-off grade has yet to be established for use in mine planning and financial modeling, and this, together with considerations such as strip ratios and mineral chemistry will be important factors in the study.

Ten drills are currently at work on Phase 2 infill drilling at Onca-Puma, which is to be completed on a 100 metre grid. Bulk sample material from a number of excavated pits is being readied for metallurgical pilot plant testing in Norway which is scheduled to begin in November. An initial environmental impact study has been completed and a full study is in progress so it is fair for Michael Kenyon, the CEO of Canico, to claim that a lot has been achieved at Onca -Puma in a short time. His plan is to turn it into a world class nickel producer and the shares are reflecting the odds on him achieving this with Inco at his shoulder.


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Feature Story



Date : Aug 27, 2003



Jubilant Team At Canico Resources Reckon They Are Close To Developing A World Class Nickel Mine At Onca-Puma.


The last time Minews met Michael Kenyon and Jonathan Rubenstein of Canico Resource Corp was in April 2002 At that time the Canico share price was around C$3 and they were not finding it too easy to raise funds for the Onca -Puma nickel project in Brazil. This year things have changed significantly as it has become clear that it is a world class deposit and the shares are now over C$12. There is no intention here of Minews trying to reinvent himself as a share tipster, but just to point out the pace at which things are moving in the mining sector, and particularly in nickel. As Our Man in Oz pointed out today, “Nickel is fascinating. Reminds me of the 66-68 nickel boom which started with a strike at Sudbury, and helped launch WMC at Kambalda.” Nothing new about a nickel boom then, but it also points up the shrewd timing of the Canico team who previously made squillions at Sutton Resources which they built up from a market capitalisation of around US$15 million back in 1990 to the US$325 million paid by Barrick Gold three years ago.

A year or so later they agreed to acquire Onca -Puma from Inco and when last in London were in the process of raising the necessary C$22.5 million to exercise the option. As a result Inco was going to end up with an 18 per cent interest in Canico and two directors on the board. The big Canadian nickel producer had discovered Onca- Puma in the 1970s, but had clearly not given it much priority as when Canico acquired it the near surface deposit had only advanced as far as having an inferred resource of 50 million tonnes grading 2.3% nickel and 0.90% cobalt. However it is worth pointing out that this could warrant a mine with a forty year life producing over 25,000 tonnes of nickel a year from what was claimed as the highest grade undeveloped nickel mine in the world.

Not a bad start , and it gets better as s scoping study carried out in 1997 had assumed that the deposits could be exploited using conventional smelting technology. This was not just guesswork as Inco had done plenty of metallurgical testwork and has agreed to process and/or market all nickel products and also put its technical expertise, which is great, behind the project. Canico’s plan in April 2002 was to start drilling by mid year and complete a bankable feasibility study by the end of 2004. First, however they had to get the money together to exercise the option. This was eventually achieved in February this year when two placements at C$3.31/share raised C$25.2 million and the deal was completed.

Four months later Canico announced that it had drill tested about 17 kilometres of the prospective 20 kilometre strike length of the Onca ridge. The results had confirmed that the mineralization at Onça was thicker, more continuous and considerably more extensive than previously estimated. The new inferred resource calculations have now been announced nad have been the driving force behind the share price in recent weeks. At a 1.5 per cent nickel cut-offgrade the Onca resource is now 69.85 million tones grading 2.12% nickel and 0.123% cobalt and at Puma there are estimated to be 34.6 million tones at 2.21% nickel and 0.07% cobalt. The total inferred resource at the two nickel laterite deposits is therefore 104.4 million tones grading 2.15% nickel and 0.105% cobalt which is well above most expectations

The Onca estimate is based on the results of 485 diamond drill holes and the revision to the Puma estimate is based on the results of an additional 24 diamond drill holes west of the main Puma ridge. This new resource estimate will now be used in a scoping study which should be completed later this year. This will be aimed at establishing order of magnitude parameters for building and operating a nickel mine at Onca-Puma prior to the full feasibility study. At the moment an appropriate cut-off grade has yet to be established for use in mine planning and financial modeling, and this, together with considerations such as strip ratios and mineral chemistry will be important factors in the study.

Ten drills are currently at work on Phase 2 infill drilling at Onca-Puma, which is to be completed on a 100 metre grid. Bulk sample material from a number of excavated pits is being readied for metallurgical pilot plant testing in Norway which is scheduled to begin in November. An initial environmental impact study has been completed and a full study is in progress so it is fair for Michael Kenyon, the CEO of Canico, to claim that a lot has been achieved at Onca -Puma in a short time. His plan is to turn it into a world class nickel producer and the shares are reflecting the odds on him achieving this with Inco at his shoulder.


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>Nickel beats the gold and silver picks

By: Tim Wood


Posted: 2003/08/22 Fri 15:26 EDT / © Mineweb 1997-2003


NEW YORK -- We have mentioned several stocks this year as attractive to investors, most of them gold and silver plays. But none has been better than the one we flagged as a potential ten-bagger – Vancouver based Canico [CNI].
The company recently announced that its Onca-Puma nickel laterite deposit in Brazil surpassed the 100 million tonne mark, beating our expected figure by 20 million tonnes. The new resource estimates have tripled previous figures and maintained a remarkable grade of 2.15% nickel after a season of intensive drilling.

Canico is due to complete a scoping study this Fall and has scheduled a full feasibility study for completion in late 2004.

Steady reporting from the project has raised the stock price from C$2.67 when it came to our attention, to C$12, a gain of 349%. If you invested with American dollars, the gain has been an even sweeter - 406% thanks to the strong Canadian currency.

In May we pegged fair value for Canico at C$12-14 on a fully diluted basis. which it is now approaching. It has had a lot of lift from resurgent nickel prices which have topped $4.30 per pound. Nickel has gained on higher imports to Japan, the strike at Inco [N], a market deficit not yet threatened by Voisey's Bay and Goro, and good stainless steel offtake.

Having hit the new tonnage marks, we see Canico as having value up to C$19 assuming a nickel price of $3 per pound, a metal recovery rate of just 70%, a half billion dollar capital cost to bring the mine to production requiring a discounted share placement and maintaining Inco’s stake at the required 18%. At current nickel prices and a recovery rate of 80%, the rule-of-thumb price rises to C$31.

There is some overhang in the market from early warrant holders who are handsomely in the money and that would trigger warrant conversion by Inco in order for it to maintain its stake. The exercise dates loom in late September and October, but hopefully they will be easily mopped up.

Canico still has C$31 million in cash so it is unlikely to need another financing before its feasibility study is completed.

Canico Resource Corp.: Onca-Puma Nickel Deposit Exceeds 100 Million Tonnes


VANCOUVER, BRITISH COLUMBIA--Canico Resource Corp. is pleased to announce the receipt of new inferred resource calculations for the Onca and Puma nickel laterite deposits in Para State, Brazil. The Onca estimate is based upon Canico's Phase I diamond drill program at Onca. In addition, on-strike drilling at the Puma West deposit, (outside the Xikrin Indigenous reserve), has resulted in the extension of the deposit and an increase in the estimated Puma West resources announced in January, 2003. The Onca estimate and the revised Puma estimate were run at two cut-off grades.

"Our drilling has more than tripled the previously estimated inferred resources at Onca-Puma," said Michael Kenyon, President and CEO. "The new resource estimates demonstrate that this project hosts one of the bigger tonnage and better grade undeveloped nickel deposits in the world, and we are determined to develop it in the earliest possible time frame."

http://biz.yahoo.com/ccn/030813/00bf62bed3377eee502c65281625da99_1.html

Research Capital -- Canico Resources

http://www.researchcapital.com/docid.cfm?docid=4219

Canico Resource Corp.: Onca Drill Results on Track

VANCOUVER, BRITISH COLUMBIA--Canico Resource Corp. is pleased to announce the results from another series of holes in Canico's ongoing drill program at Onca ridge, part of the Onca-Puma nickel laterite project in Para State, Brazil. Nickel assays from holes which cut the mineralization again continue to be in line with or exceed expectations based upon previous work.
Abundant nickel laterite continues to be present along the strike length of the Onca ridge as the drilling continues eastward. Highlights in the current series of holes include hole 3370 which carries 2.27% nickel over 18.35 meters, hole 3376 which ran 2.42% nickel over 12.75 meters, hole 3381 which returned 2.90% nickel over 16.5 meters and hole 3391 which assayed 2.47% nickel over 17.4 meters.

A table of the results reported at a 1.5% nickel cut-off and a location map are attached to this release. A complete tabulation of the composited nickel assays from Canico's programs to date, site maps for all drill holes, a description of Canico's analytical techniques and methodology, particulars of historical and recent mineral resource estimates for the Onca-Puma property and other related information may be found on Canico's website at www.canico.com. As well, a table of assay results for the holes to date at Onca at a 1.0% nickel cut-off has been added to Canico's website.

About 17 kilometers of the prospective 20 kilometer strike length of Onca ridge has now been tested in the 400 widely spaced holes reported to date from the planned 500 hole Phase 1 Onca program. Today's results, together with those reported in Canico's news releases dated February 24, 2003, March 7, 2003, April 4, 2003 and May 6, 2003, continue to demonstrate that the mineralization at Onca is thicker, more continuous and considerably more extensive than previously estimated.

"Results of our Onca drilling continue to be excellent," said Michael Kenyon, President & CEO of Canico. "A new resource calculation for Onca will be calculated from the results of this program. As well, our Phase 2, 35,000 meter in-fill drilling program is now underway. There are 8 rigs currently working at Onca-Puma and another 4 rigs are scheduled to arrive on site as soon as they are available."

CANICO RESOURCE CORP.
http://biz.yahoo.com/ccn/030613/5cf37f3614a57550d8f20147329a07a5_1.html

Canico rocket gains more altitude
By: Tim Wood

Posted: 2003/05/12 Mon 14:57 EDT / © Mineweb 1997-2003

NEW YORK -- A favourite Mineweb stock, Toronto listed Canico Resources [CNI], has punched through our most conservative valuation of C$7.40. The move came on Wednesday when the price rocketed 17% after further strong drill results were released.

The stock has more than doubled since we identified it as a potential wealth generator in late January at C$3.80; the all-time high so far stands at C$7.95 and American investors have additionally benefited from the appreciating Canadian dollar.

Canico’s primary risk is the nickel price which is in many senses hostage to Norilsk Nickel [NILSY.PK]. The Russian metals miner and marketer has recently been releasing stockpiles of “collateral nickel” which are projected to place the market in surplus this year. The nickel stockpile was used to collateralize a three-year, $200 million loan.

So far, Norilsk Nickel has disgorged 36,000 tonnes and has around 25,000 tonnes still stockpiled. The actual figure may be higher based on past underestimations of the company’s hoarding. Furthermore, Norilsk Nickel intends raising production for the next several years.

Norilsk Nickel’s supply quelled a strongly running nickel price that had run from just over $7,000 a tonne to more than $9,000 a tonne from January to late February. That was driven by reported shortages although prices have since stabilized in a range around $8,000 a tonne, or about $3.60 per pound.

Given the latest drill results, current nickel prices and presumed dilution required to bring the project to account, Canico now looks reasonably priced between C$12-14 per share. Even if the nickel price were to slip to $3 per pound, then the fair value is probably still close to C$10. Clearly, investors who bought in when we first brought Canico to attention should consider their profits at this point.

The share price is the primary value driver for Canico at the moment since it will determine the extent of dilution shareholders will suffer in carrying the capital burden for construction and commissioning.

No Mineweb staff own the stock.

Nickel hits two-month highs

By Martin Hayes

Nickel prices rose to their highest levels since mid-March on Friday, as a fundamentally tight market received an added boost from news that the world's largest producer, Russia's Norilsk Nickel will stop shipping metal to the West during the summer.

On the London Metal Exchange (LME), nickel prices rose $80 a tonne to $8,420, driven by speculative buying.

Norilsk said on Friday it would shortly halt all shipments from its Arctic port of Dudinka, ahead of annual flooding caused by meltwater from the Yenisey river, where the port is located.

"Nickel didn't really motor like copper and aluminium earlier in the week. Overall the fundamentals are pretty good, and some of the people I've been speaking to have been keen get in on the long side," a trader said.

On the LME, nickel is in a backwardation, with nearby prices higher than forward, indicating a scarcity of immediate supplies.

This is also reflecting concern over ongoing labour talks at Canada's nickel giant Inco Ltd and the union at its key Sudbury mining and milling complex in Ontario.

These are expected to centre on crucial wage and pension issues from next week.

http://www.forbes.com/newswire/2003/05/16/rtr973766.html

Canico Resource Corp.: Onca-Puma Update
CCNMatthews
VANCOUVER, BRITISH COLUMBIA--The second phase of infill drilling along with some step-out exploration drilling, has commenced on the Puma West portion of the Onca-Puma nickel laterite project in Para, State Brazil.
This portion of the work will add to the information base for Puma West and move the resources to a higher level of confidence.

Work at Onca continues towards finishing the initial pass of exploring the ultimate size of the deposit and infill drilling will proceed immediately. Some 35,000 meters of drilling will follow in the definition phase for both deposits. As well, some holes will be drilled for geotechnical purposes around the proposed plantsite.

Engineering is proceeding towards a full feasibility study to be delivered in the second half of 2004. Environmental base line studies and social studies are also underway and some preliminary metallurgical tests have also been completed satisfactorily. Arrangements for a campaign of pilot plant tests for later this year are also being discussed.

As part of the process of finalizing a feasibility study, a scoping study or initial benchmark analysis of the prospective capital and operating costs for a conventional smelter nickel project will be completed. This review will look at the potential capital, operating and production profile for a single line (1.25 million tonnes per year) and a double line (2.5 million tonnes per year) ferronickel and nickel matte option. Costs of each will be assessed to determine the optimum project for Canico to pursue in the full feasibility.

At present, preliminary engineering work has advanced faster than the current exploration and resource drilling for the Onca deposit. Drilling has shown that the Onca nickel laterite is more extensive and thicker than historical work had indicated and engineering modeling of the old Onca resources in a new scoping study is not useful. Approximately 100 additional holes are planned in the initial phase for Onca. A new resource for Onca will be completed once all assays are received from the current drill campaign.

Canico is pleased to report the appointment of Quayle Lusty as Vice President, Projects and Development. Mr. Lusty has held senior engineering management positions on mining construction and operations assignments throughout North and South America.

Mr. Lusty assumes the position held by Tony Luteijn who has recently retired. Mr. Luteijn retains an active role as an engineering consultant to the Company.

CANICO RESOURCE CORP.

J. Michael Kenyon, President & CEO

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 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, 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.

Estimates of inferred resources at Onca-Puma have been completed by Watts, Griffis and McOuat Limited, Consulting Geologists and Engineers, ("WGM"), as set out in a WGM Technical Report dated November 15, 2001, Revised January 31, 2002, and Amended May 29, 2002, and estimates of inferred resources for Puma have also been completed under the supervision of Hatch Associates Ltd., Consulting Geologists and Engineers of Vancouver, B. C. ("Hatch") as set out in a Hatch Technical Report dated January 29, 2003. These reports have been filed by Canico on SEDAR under National Instrument 43-101. The standards employed by WGM and Hatch, respectively, in estimating the inferred resources differ significantly from the requirements of the United States Securities and Exchange Commission and the resource information reported may not be comparable to similar information reported by United States companies. The term "resources" does not equate to "reserves" and normally may not be included in documents filed with the United States Securities and Exchange Commission. "Resources" are sometimes referred to as "mineralization" or "mineral deposits".

FOR FURTHER INFORMATION PLEASE CONTACT: Canico Resource Corp., J. Michael Kenyon, President & CEO, (604) 669-9446, (604) 669-9447 (FAX), Website: www.canico.com, The Toronto Stock Exchange does not accept responsibility for, the adequacy or accuracy of this release.