This seems to be in line with an earlier teaser photo which more or less gave the shape of the device away, but then again it could really be anything and since Canon has yet to make an official announcement, there is always the chance we could have been wrong about it. That being said we do know for a fact that Canon is working on such a camera as confirmed by the company in a press release last year.
At that time the company wrote, “Canon is developing a new premium digital compact camera that combines the merits of both large image sensor and high-magnification optical zoom lens in response to the demands from users looking for high quality high zoom performance.” It would seem that with such a device, Canon might be interested in competing against Sony and their RX-series of premium compact cameras. No word on when Canon will make the camera official but hopefully it will be soon.