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Cancana Resources notched up record production levels in the third quarter, including a new high output level for August.

Brazil Manganese Corporation (BMC), a joint venture (JV) partnership between Cancana and Ferrometals, produced 6,976 tonnes of manganese mineral product at the company’s operations in Brazil.

The current stockpile, net of sales, has risen to 13,563 tonnes, the company told investors.

A new monthly production record of 2,489 tonnes was achieved in August. Assays for the second quarter (Q2) production reported an average grade of 50.8% manganese (Mn). Full assays for the third quarter production are pending, Cancana said.

Production in the third quarter was mostly from the Rio Madeira plant as the plant at Jaburi was being brought back on stream after being closed down for safety checks and operational improvements.

Additional work at Jaburi was also commissioned as the first part of the previously announced expansion program.

The average grade of the overall stockpile after sales based on available assay data for 2015 was 51.4% Mn.

The company said since reporting on activities at the Dnei site, an additional 2,165 tonnes of manganese oxide was produced bringing the total to 4,665 tonnes, which has been included in the quarterly production figures above.

Drilling at the site has been initiated to provide data to assist with forward planning for further extraction, with results pending.

On the sales front, BMC shipped out 469 tonnes, and sale prices continued to average more than a 30% premium on current cash in freight (CIF) prices.

CIF Tianjin pricing for 44% manganese was US$2.79 per dry metric ton unit (dmtu), as of 1 October, according to the metal bulletin.

“This is the second straight quarter that we report record production at BMC. Our output is surpassing expectations,” declared Anthony Julien, president and chief executive officer of Cancana.

“Monthly production has more than tripled since the beginning of the year and is demonstrating increasing scalability. The growing stockpile and stabilization of production is providing BMC with an improved ability to negotiate fulfillment contracts, and the JV hopes to secure more significant sales as we head into 2016."

• [Editor:Sophie]