Cancana Resources Corp.

Cancana Resources Corp.

October 27, 2014 08:30 ET

Cancana Provides Q3, 2014 Update on Operations of Brazil Manganese Corporation

TORONTO, ONTARIO--(Marketwired - Oct. 27, 2014) - The Board of Directors of Cancana Resources Corp. (TSX VENTURE:CNY) ("Cancana") is pleased to provide a third quarter update on the operations of Brazil Manganese Corporation ("BMC") (currently known as Rio Madeira Comercio Importacao e Exportacao de Minerios Ltda. and to be renamed Brazil Manganese Corp.), a joint venture established between Cancana and Ferrometals BV, Cancana's largest shareholder.

During BMC's third quarter ended September 30, 2014, on-going exploration of the BMC tenements has identified four additional sites potentially suitable for mining. Permitting and planning is underway to enable BMC to commence mining at the new sites. If feasible, the new mine sites will provide feed to the existing plants, known as Rio Madeira and Jaburi (acquired from Eletroligas Ltda). In addition, BMC is preparing mine plans focused on increasing efficiency and extending the mine life at both the Jaburi and Nezao sites.

Total production for BMC's third quarter ended September 30, 2014 was 1,200 tons with 250 tons sold as commercial samples. Production numbers continue to improve as the Company focuses on increased processing efficiencies at the two plants. Demonstrating this during the two week period following BMC's third quarter ended September 30, 2014 the company produced 1,372 tonnes.

Cancana has concluded mining operations at the MLB trial mine, known as Valdirao. Approximately 20,000 tonnes had been stockpiled, of which, 2,500 tonnes of material was processed at the Rio Madeira plant, producing 510 tonnes of manganese cobbles. Cancana and BMC jointly analysed the remaining stockpiled material, but given the low ratio of manganese cobbles produced to material processed, management decided to discontinue processing material from Valdirao. BMC has implemented a reclamation plan designed to restore the mine site.

BMC's continued focus on improving infrastructure and implementing processes to Canadian mining standards has received a positive response from the local market given deficiencies in this regard have affected past production capacity.

The Rio Madeira plant was shut down for five weeks while improvements were made to the trommel, tailing ponds, and resolution of water access issues. During this period, the plant operated one shift per day on a five day work week enabling BMC to calibrate operations.

Acquisition delays resulted in the Jaburi plant coming online on September 25, 2014.

Further improvements to both plants include the installation of electric lighting that will increase capacity by enabling two shifts per day. These improvements are planned for completion during November, 2014.

Anthony Julien, CEO of Cancana commented: "The BMC team has done an excellent job in bringing together the 3 assets and improving them to reach Canadian mining standards. Now that both plants are online and we have a mine plan to deliver consistent quality material, BMC is on-track to meeting its production target by December, 31, 2014."

A regime of continuous testing has begun to match specification of BMC product with market requirements. In addition, BMC is currently constructing an on-site sample preparation lab that will allow more timely analysis of the manganese. When properly established these processes will assist market confidence in price and quality of the BMC product. BMC is aiming to be a market leader in quality and potential customers have been willing to engage in early discussions as this effort addresses issues of consistency and quality, a universal manganese market problem.

Lastly, BMC has established a tree nursery, growing saplings for the reclamation of all mine areas. To date ground preparation has prepared the site for planting of 750 saplings. Planting of the saplings will coincide with the start of the rainy season. with a commitment to plant 8,500 saplings within the next 12 months.

BMC officially launched its brand to employees and their families, as well as local, state and federal members of government on September 21, 2014. The CEO and GM also presented the BMC values to guide behaviour as BMC employees: Respect, Connect and Prosper.

About Cancana Resources Corp.

Cancana is an exploration stage company that has transitioned into production through a joint venture with Ferrrometals BV. The joint venture (BMC) is focused on developing manganese production in Rondonia, Brazil. BMC has acquired established manganese producers Rio Madeira and Eletroligas whose claims are adjacent to and mainly contiguous with Cancana's MLB manganese operation. All available resource reports and information on Cancana's properties are located on the Company website

Issued on behalf of the Board of Directors of Cancana Resources Corp.

Senator J. Trevor Eyton, Chairman of the Board

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. This press release contains forward-looking information under Canadian securities legislation. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Cancana to be materially different from those expressed or implied by such forward-looking statements, including but not limited to those risks described in Cancana's public documents filed on SEDAR from time to time. Although management of Cancana has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Cancana does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

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