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Canada : Cancana JV enters into contract to construct 50,000 tonne pilot processing plant.

Cancana Resources Corp. (the Company or Cancana) and its joint venture partner Ferrometals BV (Ferrometals), together Brazil Manganese Corporation (BMC), are pleased to announce that BMC has engaged engineering and consulting firm Kttner to construct a 50,000 tonne per year pilot processing plant.

BMC has entered into a contract with Kuttner to begin construction of a pilot processing plant at BMCs manganese project in Rondonia, as recommended in the engineering report prepared by Ausenco Ltd (refer to the September 16, 2015 news release). The pilot processing plant will enable BMC to process both the colluvium and primary vein material. Highlights include:

The pilot processing plant capacity will be 50,000 tonnes of finished manganese product per year;

The pilot processing plant will be located at the Jaburi site and is expected to commence operations in early 2017;

The detailed engineering of the plant has been initiated by Kttner. The procurement for the equipment and material should commence in the coming months with the jigs being supplied by Allmineral (http://www.allmineral.com/gb/index.php)

The total cost of the pilot processing plant is expected to be BRL$11,700,000 (approximately C$4.1 million). The pilot processing plant will be funded by contributions from the joint venture partners in accordance with the BMC shareholders agreement.

The goal is to achieve cost savings through additional capacity and a streamlined process, as well as providing reliable conditions for BMC to achieve its production and safety goals. The expanded capacity will also allow BMC to further explore and reach out to international niche markets of high grade Manganese.

Cancanas President & CEO, Anthony Julien, stated, Our investment in this pilot processing plant is a positive commitment to our strategy for increasing the scale of production output to match continuing discovery of further manganese mineralization through our exploration program.

The Company believes that current demand for BMCs product exceeds the planned capacity of the pilot plant with sales orders for the first quarter of 2016 totalling 15,657 tonnes of manganese. The pilot processing plant will also enable BMC to understand the response of the forecasted mining process to the primary veins and enable BMC to verify the metallurgy as it moves the focus to planning the feasibility studies for a further expanded Phase 1 plant. A Phase 1 plant is dependent on the completion of a positive preliminary economic assessment and feasibility study. The proposed pilot processing plant is anticipated to generate significant data for such studies.

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Publication:Mena Report
Date:Jun 30, 2016
Words:429
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