Cancana Resources (CNY.V) has announced Ausenco has audited the company’s processing plant in Brazil to find out the best way to move forward to expand the production rate. Ausenco has concluded the best way to achieve this is to focus on the Jaburi plant where Cancana will be able to achieve cost savings whilst substantially increasing the annual throughput.
According to Ausenco, it shouldn’t be a problem to expand the Jaburi plant to 50,000 tonnes per year (which is a substantial increase, considering this year’s output is expected to be just 20,00 tonnes), but what’s more important is the fact the expanded plant will be able to process both colluvium and primary vein material. Cancana hasn’t provided an estimate on the expected capital expenditures for the expansion, but we would expect the expansion capex to be a single-digit amount.
We are awaiting Cancana’s exploration results before releasing an in-depth update on the company.
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Disclosure: The author holds a long position in Cancana Resources. Cancana is a sponsor of the website. Please see our disclaimer for current positions.
