VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 23, 2010) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce that a systematic and dynamic exploration program has been planned for the Company's Handeni Project, including the Magambazi prospects, located in the Handeni region of the United Republic of Tanzania.
Exploration currently underway includes a 10,000m+ diamond drilling program at Magambazi and Magambazi North, preliminary metallurgical test work on the Magambazi mineralized zone, approximately 1000m of trenching at the Majiri Bomba Prospect and infill and more regional soil sampling across the region. Exploration planned to commence mid-year includes extensive RC drilling and regional RAB drilling of the multiple targets already defined and new targets located during reconnaissance soil sampling. A close-spaced aeromagnetic survey will also be flown across the entire Project area, to aid in targeting, interpretation of the structure and mineralization controls of the district, and may be utilized in direct targeting of the pyrrhotite rich (magnetic) ore systems.
"Canaco is gearing up to test the multiple targets defined with an aggressive but systematic exploration campaign over the coming year," said Andrew Lee Smith, Canaco's C.E.O. "The exciting results to date, with numerous thick zones of high grade gold mineralization from Magambazi and Magambazi North are very encouraging and the exploration program is performing beyond Canaco's expectations."
Diamond drilling is currently being conducted at Magambazi where infill and extensional drilling recently intercepted the northern extension to the Magambazi high-grade gold shoot. The mineralized zone has excellent continuity of thickness and grade over 240m of strike and is open north and poorly constrained to the south. The drill rig will return to Magambazi North in the near future where several zones of near surface gold mineralization have been intercepted. Drilling will focus on extending the main zone (best intercept of 30m @ 3.46 g/t Au) north, south and down dip, initially over 300m of strike. Drilling thus far has intersected the Main Zone over 160m strike and the mineralized zone is open north and south and down dip on every section. Peak soil sample results (1.22 g/t Au) along strike of the Main Zone occur 160m north of the current drilling.
Ongoing work includes the collection of high-quality geotechnical data, rock density (specific gravity) measurements and detailed structural data collection.
Canaco's 200km2 Handeni project comprises the 199 km2 100% owned, Kilindi License, which includes the Majiri Bomba, Semwaliko, Semwaliko North and Magambazi North Prospects and the Magambazi Primary Mining Licenses ("PML") which include the Magambazi prospect. The Magambazi PMLs are owned by Magambazi Mines Ltd and under option to Canaco. Canaco has the right to purchase a 100% interest in the Magambazi license, subject to a 2% NSR for cash payment of US$1.8M. The Handeni Project includes the 11 kilometre Handeni Gold Trend that has been defined by soil geochemistry and sites of artisanal mining activity at the prospects listed above.
The Magambazi and Magambazi North prospects are the sites of recent discoveries announced by Canaco. These discoveries are part of a 1.4 kilometre long trend of gold mineralization defined by bedrock gold occurrences, artisanal mine workings and soil geochemical anomalies. This 1.4 kilometre trend includes the Magambazi, Magambazi Central and Magambazi North targets (collectively known as the "Magambazi prospects") and represents the southernmost segment of the 11 kilometre Handeni Gold Trend contained within the Company's Handeni property.
The planning, execution and monitoring of quality control programs at the Handeni project are under the supervision of Andrew Lee Smith, P.Geo, Canaco's CEO and Dr. David Groves, Canaco's Director of Project Development, Tanzania. Mr. Smith and Dr. Groves are qualified persons as defined by National Instrument 43-101. Canaco utilizes an industry standard QA/QC protocol with respect to sampling procedures. Blanks, and certified reference standards are inserted into the sample stream to monitor laboratory performance and duplicates of pulps and bulk rejects are also used to monitor laboratory performance.
Additional information and public documents about Canaco Resources, including images of 2009 exploration activities, can be viewed at the Company's website www.canaco.ca or at www.sedar.com. Canaco Resources Inc. is listed on the TSX Venture Exchange and is engaged in the exploration and development of Tanzanian gold prospects.
Andrew Lee Smith, P.Geo, CEO, Canaco Resources
Dr. Jingbin Wang, Chairman, Canaco Resources
Canaco Resources Inc.