Context : Aims : We investigate small-scale flux cancellations in a young active region observed with the high-resolution imaging magnetograph IMaX on the Sunrise balloon-borne solar observatory . Methods : The observed Stokes profiles of the photospheric Fe i 5250.2 Å line are inverted using the SPINOR code to obtain the atmospheric parameters , including magnetic field vector and the line-of-sight velocity . We then identified 11 opposite-polarity cancelling pairs using an automatic detection code , studied their evolution in detail , and derived their statistical properties . We classified the cancellations into two groups . Class I events are those for which cancellation happens between a pre-existing large magnetic feature of one polarity and a smaller feature of the other polarity that emerged/appeared nearby . For Class II events cancellations occur between two pre-existing , previously unconnected features that converge toward each other . Results : All studied events have an apparent cancellation time less than 10 minutes and display a significant transient linear polarization signal along the polarity inversion line . The cancellation events are characterized by a flux decay rate of about 10 ^ { 15 } Mx s ^ { -1 } . For Class I events , the Doppler velocity of the disappearing patch gradually switches from blueshift during the initial phase of cancellation to redshift towards the end of the cancellation . For class II events , the Doppler velocity is consistently redshifted . Horizontal convergence speeds of Class II pairs fall between 0.3 and 1.22 km s ^ { -1 } . The elements often do not converge directly towards each other , so that the proper motion speeds of the individual elements is higher , in the range of 1 - 2.7 km s ^ { -1 } . Conclusions : We propose that these cancellation events result from either field-line submergence ( Class I ) , or reconnection followed by submergence ( Class II and/or Class I ) . Ohmic dissipation of magnetic energy could also play a role for both classes . The dynamics and evolution of these events are influenced by neighbouring granular motions . We propose that , at least for the Class II events , the granular motions could possibly be driving magnetic reconnection , rather than the supergranular motions proposed for the larger cancellation events studied earlier . Specific flux cancellation rates of the Class II events seem to indicate that they belong to somewhat different category of cancellations when compared with those studied in SOT/Hinode and MDI/SOHO data .