VANCOUVER, BRITISH COLUMBIA–(Marketwired – Sept. 16, 2015) – Cancana Resources Corp. (TSX VENTURE:CNY) (the “Company” or “Cancana”) announced today that its joint venture Brazil Manganese Corp. (“BMC”) has received the engineering report from Ausenco Ltd (“Ausenco”) based on an audit of BMC’s two plant operations. The report recommended that the best way of optimizing and increasing production is to concentrate operations at the Jaburi plant. The goal is to achieve cost savings through streamlining the plant, as well as providing reliable conditions for the company to achieve its production and safety goals.
Cancana President and CEO, Anthony Julien stated, “With this engineering plan we have a clear path to more than doubling current production capacity, and lower costs. We have exceeded our goals for improving the efficiency of our current operations and with first results from our underground exploration to appear soon, we have been able to demonstrate significant progress in both major parts of our project.”
The improvements recommended include: the update of some equipment, such as jigs and crushers; revamping of some conveyor belts; upgrades in the water and tailings systems; connection to the local power grid; and a few additional infrastructure adjustments. Some of these improvements have already been implemented to increase current efficiency and capacity. The revamped Jaburi plant will be able to process both colluvium and primary vein material present at the project. Based on the recommendations, plant production capacity in 2016 is targeted at 50,000 tonnes of high-grade, finished product per year.
In the coming months, BMC will engage a local engineering company for the detailed engineering of the modifications and initiate the revamp of Jaburi, with all modifications expected to be complete by the middle of 2016.
On behalf of the Board of Directors of
CANCANA RESOURCES CORP.
Anthony Julien, President, CEO & Director
Ausenco is an ASX-listed, global, diversified engineering, construction and project management company providing services in minerals and metals, process infrastructure, program management, environment and sustainability and oil and gas. Across 31 offices in 19 countries, Ausenco delivers new and better ways to add value to clients’ projects no matter how demanding, and deliver results in some of the world’s most challenging environments. Further information can be found on the Company’s website: www.ausenco.com.
Cancana Resources Corp. is focused on exploring and developing the BMC manganese project in Brazil with its joint venture partner Ferrometals, a special purpose investment vehicle for The Sentient Group (“Sentient”). Sentient is a resource-focused private equity fund with approximately $2.7Bn in assets under management, and a 15-year track record for advancing resource projects from early stage through pre-feasibility and development and into production. Cancana and Ferrometals are employing a two-pronged strategy at BMC. The primary objective is to advance BMC to an initial resource and onward to pre-feasibility, while also expanding current small-scale production to support those exploration activities. Further information can be found on the Company’s website: www.cancanacorp.com.
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.
VP Corporate Development
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