Cancana Resources Corp.
TSX VENTURE : CNY

Cancana Resources Corp.

February 05, 2015 08:45 ET

Cancana Reports Brazil Joint Venture 2014 Manganese Production, Operational Upgrades

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 5, 2015) - Cancana Resources Corp. (TSX VENTURE:CNY) ("Cancana" or the "Company") is pleased to report production from its joint venture, Brazil Manganese Corp. ("BMC") of 4,631 tonnes of manganese ("Mn") material for the year ending December, 2014. Additionally, BMC invested US$300,000 in major safety upgrades, equipment, and quality assurance improvements at both the Rio Madeira and Jaburi processing plants.

Mineralized material grades are monitored by channel sampling on individual truckloads of material. 118 samples have been analyzed via lithium borate fusion XRF techniques at SGS Laboratories in Belo Horizonte, Brazil. Assays for a number of material types remain pending to confirm the final grade of the material, but results to date indicate an average grade of 53.2% Mn. Results fall within laboratory analytical tolerance limits of +/- ~1.8% Mn at two standard deviations. Additional trace elements are monitored via ICP-OES analytical techniques.

Plant operations were temporarily shut down early in the year to make significant upgrades for safety, throughput efficiency, and quality assurance. A brief period of production followed before the rainy season began in November. The Rio Madeira plant produced 2,887 tonnes for the year. Average weekly production was 181 tonnes per week with the greatest single weekly production being approximately 410 tonnes. The Jaburi plant produced 1,744 tonnes for the year. Its average weekly production was 125 tonnes per week with the largest single weekly production total being 228 tonnes. Mill feed for both plants came from a total of six different sites.

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.

Colluvial Mining

Mining operations at BMC consist of removing surficial material best described as colluvial. The colluvial mineralization occurs as clean, high-grade clasts of pyrolusite or other forms of manganese minerals. The clasts are generally rounded, oval to sub-angular. They occur as a surface layer of material ranging in size from sand to angular blocks greater than a half metre on a side. The clasts are loose to close packed and range from a thin veneer to thicknesses up to 1.5 metres in depth. Red, saprolitic soil acts as the matrix material. Heterolithic clasts of granitic composition are variable in content by volume within the soil profile as well. The cobble fields can range from less than half of a hectare to several hectares in size. Within these cobble fields the content of cobbles varies from lean to very rich.

Qualified Persons

John Harper, P.Geol, Cancana's Chief Mine Geologist is a Qualified Person under NI 43-101, and has reviewed and approved the technical information related to mining operations in this news release.

About Cancana

Cancana Resources Corp. is a TSX Venture - listed production and exploration company based in Vancouver, BC, Canada. The Company's primary focus is its 23.87% interest in joint venture with Ferrometals BV (a subsidiary of The Sentient Group) on a manganese mine in Brazil. The joint venture, called Brazil Manganese Corp. ("BMC"), is currently producing high-grade manganese to supply Brazil's growing fertilizer market. An aggressive exploration program is underway on the BMC's property to delineate the manganese mineralization at depth. Further information can be found on the Company's website: www.cancanacorp.com.

ON BEHALF OF THE BOARD of Cancana Resources Corp.

Anthony Julien, President, CEO and Director

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.

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