TORONTO, ONTARIO--(Marketwired - Jul 15, 2013) - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is pleased to announce that the Departamento Nacional de Produção Mineral, (Department of Mines for Mineral Production), ("DNPM"), has issued the Guia De Utiliacão, or Trial Mining License, ("Guia"), on its 886241/2011 manganese claim.
The issuance and receipt of the Guia, Trial Mining License, provides approval for mining operations, extraction, processing and sales of Manganese ore.
As reported on June 6, 2013, Cancana has already been issued Preliminary Environmental License, ("LP"), and the Installation License, ("LI"), the Operating License, ("LO"). Cancana is submitting an application for a Water Permit which will allow for the use of water in the ore washing process.
Cancana intends to commence the development of infrastructure and site preparatory work needed in order to establish mining operations on 886241/2011 manganese claim also known as Valdirão. This will include working with the land owners and contractors throughout the region while we work to establish the infrastructure needed to commence operations. The area that has been permitted contains the area that Cancana has completed a Technical Report and is described below.
On January 15, 2013 Cancana reported that it had completed Phase 2 of National Instrument 43-101 Compliant Technical Report, ("N.I. 43-101"), on one of its high-grade manganese claims in Rondonia, Brazil. This independent N.I. 43-101 Technical Report was prepared for Cancana by John Harper, ("Harper"), Professional Geologist, and Qualified Person and is an extension and update of the initial Technical Report dated November 19, 2012.
The updated N.I. 43-101 Technical Report executed the recommendations and ongoing work of the initial Technical Report on a claim known as 241 and in an area of that claim identified as 241NC ("Sigmine claim # 886241/2011"), and provides an increase to the Inferred Resource totalling 35,000 tonnes of mineralization with an average Manganese grade of 54%. The updated N.I. 43-101 Technical Report was completed on an area that had increased in size from 2.97 hectares to 4.4 hectares, the entire claim 241 is 5,417.35 hectares in size. A further four Manganese samples were collected and brought to Canada for assay. The samples assayed graded between 51.97% to 58.03% Mn with an average grade of 53.81%.
Andrew Male, President & CEO of Cancana, commented; "The issuance of the Guia is effectively the last step in this process of becoming fully permitted. The Guia allows Cancana to begin mining excavation, ore processing and sales. Once we obtain the Water License it will allow Cancana to wash the processed Manganese ore on site. In the interim we will continue to work with the Company's Consultants in order to develop the balance of the mining plan and organisation of the infrastructural requirements.
With the issuance of these permits over the past 3 months, we are now fully permitted and as such we have managed to de-risk Cancana dramatically. Cancana is able to embark on its operational plan and transition from exploration to production, a key step in the development of a mining company.
We continue to actively work toward the successful acquisition of Rio Madeira, the company adjacent to our existing mineral claim package. The synergies of combined operations within the region will allow for reductions in cost both from a capital and operational expenditure point of view. Now with the permitting of Valdirão we can establish a new mining operation that can feed the Rio Madeira processing plant and in turn increase the overall production and capacity."
Cancana Resources Corp. is an exploration stage company that is transitioning into production with assets in Brazil and Canada. The Company has been seeking projects that expand its resource base and provide for near term production and revenue. All available resource reports and information on the Company's properties are located on the Company website.
Issued on behalf of the Board of Directors of Cancana Resources Corp.
Mr. Andrew Male, CEO & Director
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expressions are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objects, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date, the statements were made. The Company does not update forward-looking statements continually as conditions change. We seek safe harbour.
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