Paraúna

Cancana has an 85.88% interest in Amazon Resources' Paraúna alluvial diamond and gold project (Paraúna) which is located in the Minas Gerais State of Brazil north of the city of Belo Horizonte. The Parauna Mine has produced over 2,070 carats at an average US$250 per carat.

Amazon Resources' main project is located on the Rio Parauna in the Diamantina region of Mineras Gerais where it holds a concession area covering 720 hectares.

The project is in an area with a well developed infrastructure. It has grid power, easy access to roads and a supportive township just 5 km away. Local people welcome the 100 jobs that will be created by the project.

Previous drilling and sampling over the course of 5 years has indicated reserves in these concessions of over 200,000 carats of diamonds and nearly 20,000 ounces of gold at conservative estimates.

Amazon's first plant is ready to mine 350 hectares initially, increasing to include a further 200 hectares in the longer term. Using conventional dry dragline and backhoe mining techniques these reserves will be mined for approximately ten years. This low-cost, sustainable approach involves no chemicals and leaves no toxic waste.

Amazon Resources complies with the World Bank/IFC's Equator Principles. Consequently, it believes a project does not end with a mine's closure but only after a comprehensive remediation programme that includes returning overburden and gravel to the flood plain and restoration of flora from the company's own nursery.