VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 17, 2010) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce the Company is proceeding with plans to accelerate the exploration program at the Handeni gold discovery located in the Handeni region of the United Republic of Tanzania, importantly increasing drill capacity to three diamond drill rigs at Magambazi.
The $13.7M exploration program will rapidly advance the definition of the extent of the gold discovery at Magambazi and test proximal targets in the vicinity of the Magambazi Hill. Exploration will also continue to advance and assess high-priority exploration targets identified elsewhere along the Handeni Gold Trend.
The exploration program will include:
- The addition of two diamond drill rigs to complete approximately 28,000 metres of drilling at Magambazi in the short term;
- Reverse Circulation (RC) and Rotary Air Blast (RAB) drill rigs to test numerous gold targets along the Handeni Gold Trend and to test for productive water wells required to support the drilling operation;
- A detailed airborne magnetic survey and ground geophysical surveys;
- Additional geological mapping to advance understanding of key targets and infill geochemical sampling on emerging targets;
- Multi-element assaying of all diamond drill samples and other detailed resource type studies including Specific Gravity (SG) analysis and petrological studies;
- Further detailed metallurgical test work; and
- The continued development of environmental baseline data and an environmental impact assessment study.
A total of 28,000 metres of diamond drilling is scheduled to be completed during the next phase of exploration and resource definition at Magambazi with three diamond drills on site testing the extensions of the Magambazi mineralization to the north and to depth as well as defining the continuity of grade and structure of the mineralization. The drilling will establish a framework for a resource calculation that will follow completion of the drill program. Priority will be give to testing exceptional targets including:
- North of the recent high grade intercept of 37m at 12.45g/t Au (refer to our press releases dated 9th July 2010);
- The entire Magambazi Main Lode position, including all sections between Magambazi and Magambazi North;
- The down dip position of the Magambazi Ore Body and related mineralization;
- The Northern Extension of the Magambazi North and Main Lode positions.
- Infill drilling on sections where the drilling is wide spaced, to aid in the resource definition;
- Magambazi East, which is a new lode position east of Magambazi Main Lodes, identified in MGZD022 (8m @ 1.1 g/t Au).
In addition to the drilling, access infrastructure sufficient to support continued exploration on a year-round basis, will be developed, including new roads and establishment of a productive water wells.
THE HANDENI GOLD TREND
The Handeni Gold Trend is an 11 kilometre trend of surface gold mineralization defined by anomalous gold geochemistry and the presence of alluvial and bedrock artisanal mining operations including the K1, Semwaliko North and Majiri prospects, in addition to the Magambazi prospects. Recent soil sampling, reinterpretation of the regolith, multielement geochemistry and other regional work, has defined several new anomalies along the trend and some high priority drill targets with geology and mineralization similar to that discovered at Magambazi.
The current exploration program includes provisions for 5000+ metres of Rotary Air Blast ("RAB") drilling and 7000+ metres of Reverse Circulation ("RC") drilling, both of which have already commenced. This program is intended to provide an initial assessment of the potential for economic gold mineralization along the Handeni gold trend on 14 separate targets (including the western flank of the Magambazi Hill and new geochemical targets north and west of Majiri Bomba (Tajiri and Kiajani). In addition to the RC and RAB drilling, the Handeni trend will also be the subject of detailed field work that will include an airborne magnetic geophysical survey and geological and geochemical survey work that will further assist in the definition and prioritization of targets.
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.
Additional information and public documents about Canaco Resources, including drill hole intercepts, drill collar maps, and 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.