Cancana JV Achieves Record Manganese Production in Q3
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov 10, 2015) - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") and its joint venture partner Ferrometals, together Brazil Manganese Corporation ("BMC"), are reporting results from Q3 operations. Record production was achieved in the quarter and a new record monthly production was achieved in August.
Cancana's President & CEO, Anthony Julien, said, "This is the second straight quarter that we report record production at BMC. Our output is surpassing expectations. Monthly production has more than tripled since the beginning of the year and is demonstrating increasing scalability. The growing stockpile and stabilization of production is providing BMC with an improved ability to negotiate fulfilment contracts, and the JV hopes to secure more significant sales as we head into 2016."
Production
Third quarter production at BMC totalled 6,976 tonnes of manganese mineral product, bringing the current stockpile to 13,563 tonnes (net of sales). A new monthly production record was achieved in August with 2,489 tonnes. Assays for the second quarter production reported an average grade of 50.8% Mn. Full assays for the third quarter production are pending. The average grade of the overall stockpile after sales based on available assay data for Q2 2015 was 51.4% Mn(i).
Since reporting on activities at the Dnei site, an additional 2,165 tonnes of manganese oxide was produced bringing the total to 4,665 tonnes (included in quarterly production above). Drilling at the site has been initiated to provide data to assist with forward planning for further extraction, with results pending.
Sales
Third quarter sales at BMC totalled 469 tonnes and sales prices continued to average more than a 30% premium on current CIF prices. CIF Tianjin pricing for 44% manganese was $2.79 per dmtu as of October 1st, 2015 (source: www.metalbulletin.com).
Plant Upgrades at Jaburi
Production in the third quarter was primarily from the Rio Madeira plant as the Jaburi plant was brought back on stream after temporary closure for safety and operational improvements. Additional work was also commissioned as a first step in the expansion program (described in news release dated Sept. 16th, 2015), including:
- Construction of a shed and cover for improved wet season operation (see Figure 1 for image of roof construction over the Jaburi plant)
- Expansion of on-site accommodation for running a second shift
- Installation of new jigs for additional capacity and efficiency
To view Figure 1: Roof construction at Jaburi plant for year-round operations, please visit the following link: www.marketwire.com/library/20151109-cny1110fig1full.jpg.
On behalf of the Board of Directors of Cancana Resources Corp.
Anthony Julien, President, CEO and Director
QUALIFIED PERSON
The technical information about the Company's mining activities has been prepared under the supervision of and verified by Dr. Adrian McArthur (B.Sc. Hons, PhD. FAusIMM), a consultant to Brazil Manganese Corporation, who is a "qualified person" within the meaning of National Instrument 43-101.
ABOUT CANCANA
Cancana Resources Corp. is focused on exploring and developing the BMC manganese project in Brazil with its joint venture partner Ferrometals BV. The JV is employing a two-pronged strategy at BMC, where the primary objective is to advance the project to an initial resource and onward to feasibility, while also expanding current small-scale production to support those exploration activities. Further information can be found at www.cancanacorp.com, and www.bmcorporation.com.br.
ABOUT FERROMETALS
Ferrometals is a privately held mining and metallurgical group. It is a global supplier of essential minerals and micronutrients to the agriculture, steel and manufacturing industries. Building on sustainable and ecologically sound production methods, it is developing specific product lines designed to enhance the yield and growth potential of these industries. Further information can be found at www.ferrometals.net.
FORWARD-LOOKING STATEMENTS
Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements include, among others, statements with respect to the Company's plans for exploration and development of the Brazil properties and potential mineralization. These statements address future events and conditions and, as such, involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the statements. Such risk factors include, among others, failure to obtain regulatory approvals, failure to complete anticipated transactions, the timing and success of future exploration and development activities, exploration and development risks, title matters, inability to obtain any required third party consents, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices and one-time events. In making the forward-looking statements, the Company has applied several material assumptions including, but not limited to, the assumptions that: (1) the proposed exploration and development of mineral projects will proceed as planned; (2) market fundamentals will result in sustained metals and minerals prices and (3) any additional financing needed will be available on reasonable terms. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
The Company cautions that it has not completed any feasibility studies on any of BMC's mineral properties, and no mineral reserve estimate has been established. Because the Company production decision is not based upon a feasibility study of mineral reserves, the economic and technical viability of the property has not been established.
(i) Stockpile grades are monitored by a channel sampling program on individual truckloads of manganese oxide it is delivered to a centralised storage facility. Samples have been analyzed via lithium borate fusion XRF techniques at accredited laboratories:
- SGS Laboratories in Belo Horizonte, Brazil - 157 samples;
- Bureau Veritas Minerals Laboratories in Perth, Western Australia - 86 samples.
Additional trace elements have been monitored via 4 acid digest and ICP-OES analytical techniques SGS Laboratories, and Fused Bead Laser Ablation ICP-MS techniques at Bureau Veritas Minerals Laboratories.
Submissions include certified references to monitor laboratory performance, which have returned results within the expected laboratory analytical error margins. Average grades of mineralized material fall within laboratory analytical tolerance limits of up to +/- ~1.8% Mn at two standard deviations.
Stockpile tonnages are currently monitored by an independent weighbridge service, with trucks weighed upon arrival and departure in the township of Espigao d'Oeste. Ninety-eight percent of the stockpile tonnage has been confirmed by weighbridge records, with the remainder (from early production) having been surveyed.
Contact
Cancana Resources Corp.
Dylan Berg
VP Corporate Development
604-681-0405
dberg@cancanacorp.com
www.cancanacorp.com