Cancana Resources Corp. (CVE:CNY) provided Thursday an update on its trial mining operations at its Valdirao manganese mine area in Brazil, saying it is now beginning to see the geologic structures that the company believes have always been there.
Since November, when the company received the trial mining license from the local department of mines for mineral production, it developed a mining plan that allows for the mining and excavation of ore at the highest point within the active area of mining.
Cancana said Thursday that initial activity at the top of the ridge showed a series of vein structires that were evident below the surface topsoil, with the top 3-4 metres of soil containing manganese cobble ore that has been stockpiled.
The trial mining operation has exposed the vein structures, giving the company insight as to the direction and width of the mineralization, it said. Cancana has continued to excavate this area to a depth of 20 metres, and the manganese veins have continued below this depth.
"Considering, Valdirao on its own as a trial mining site we are pleased with the results that we have seen so far," said president and CEO Andrew Male.
"It is important to establish an area whereby this type of research can be completed to enable a good knowledge base in going forward. In our case we are able to generate value for the ore alongside doing the exploration and research work. This is a very good combination of events that is rarely seen."
Cancana said it uncovered further manganese vein structures that are on the same strike and direction of the vein structures visible at the top of the ridge and will continue to research and mine these areas in order to develop a comprehensive mining plan that will allow for the quantification and extraction of the manganese ore.
So far, the company said it has transported about 400 tonnes of large cobble manganese ore to the Rio Madeira processing plant.
Cancana announced last month that shareholders approved its proposed deal to acquire Rio Madeira, a producing manganese mine operation that has been operating for the past eight years, producing lump ore of varying sizes and is located adjacent to, and mainly contiguous with, Cancana's manganese claims.
"This trial mining and excavation process activity will enable Cancana to learn from these activities and provide support for more comprehensive development of other areas throughout the region," said Cancana's head mine geologist, John Harper.
One massive advantage that accrues to the manganese project is its proximity to infrastructure -- Valdirao is within 20 kilometres of the Brazilian National Highway, which itself is accessible by municipally-maintained roads, for transportation of ore out of region.