VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 3, 2010) - Canaco Resources Inc. (the "Company" or "Canaco") (TSX VENTURE:CAN) is extremely pleased to announce additional gold results of 33.0 metres at 3.39 g/t Au including 9.9m at 6.25 g/t Au (MGZD053) and 68.3m @ 1.9 g/t Au (MGZD067) from the interpreted Magambazi Main Lode position on Magambazi North, at the Company's Handeni Gold Project in the Handeni region of the United Republic of Tanzania.
Results, also, received include a further high-grade intercept of 32.0m at 9.27 g/t Au (MGZD073) from the Central Magambazi area, 50 vertical metres above MGZD043 21.2m @ 4.80g/t Au (refer to our press releases dated May 3, 2010 and July 12, 2010) and 200m northwest (grid north) of the 37.0 metres at 12.45 g/t Au (MGZD066) at Magambazi (refer to our press release dated July 12, 2010). This infill hole was drilled to test the up-dip position of the Main Magambazi Lode and has significantly increased the size of the Lode in the Magambazi Central area.
Drill holes MGZD053, MGZD067 and MGZD068 were drilled 80m to 120m north of drill hole MGZD048 (60.0m at 1.67g/t Au - refer to our Press Release dated May 27th 2010) to test the northern extension of the steep west dipping Magambazi Main Lode position on Magambazi North. All three of the drill holes have intersected large zones of alteration and sulfide mineralization, effectively adding 120m to the known strike of the high-grade Magambazi Main Lode with the following intercepts:
- 33.0m at 3.39 g/t Au (MGZD053 from 52m) including 9.9m at 6.25 g/t Au (from 70.8m);
- 68.3m at 1.9 g/t Au (MGZD067 from 54.7m) including 13.3m @ 4.35 g/t Au (from 99.7m); and,
- 33.3m at 2.46 g/t Au (MGZD068 from 55.7m) including 5.0m @ 8.04 g/t Au (from 56.7m) and 6.7m @ 5.41 g/t Au (from 78m).
The known strike of the Magambazi Main Lode is now over 800m. North of hole MGZD053 (Section 60160N) the Magambazi Main Lode is interpreted to join the Magambazi North Lodes in a keel-shaped synform. However, additional drilling is required to confirm this interpretation. South of this area there are at least two separate lodes (west and east), which diverge southwards.
Drilling on the northernmost section drilled at Magambazi North (60160N) has also intersected broad zones of near surface gold mineralization with results of:
- 24.4m @ 1.38 g/t Au (MGZD056 from 42m) including 11.1m @ 2.29g/t Au.
This intercept clearly demonstrates that the near surface Magambazi system is open to the north and based on strong surface gold anomalism from soil sampling along strike (up to 1218ppb Au), it is anticipated that the mineralization will persist for at least 100m to the north of the current limit of drilling.
Gold mineralization of significant widths and grade has now been drilled over 850m strike at Magamabazi and Magambazi North with mineralization open north, south and down dip. Drilling continues to add tonnes to the growing volume of gold mineralization in the Magambazi area. 73 diamond drill holes have now been completed for 16,294m. All drill holes except for six have intersected gold mineralization greater than 1g/t Au.
The Magambazi and Magambazi North prospects are part of a 1.4 kilometre long trend of gold mineralization now defined by high grade drill results, artisanal mine workings and soil geochemical anomalies. This 1.4 kilometre trend represents the southernmost segment of the 11 kilometre Handeni Gold Trend contained within the Company's Handeni Gold Project.
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, 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 Inc.
Dr. Jingbin Wang, Chairman, Canaco Resources Inc.
The Company relies on litigation protection for "forward-looking" statements.
Canaco Resources Inc.