Nov 11 2015
Cancana Resources Corp. (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.