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VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2009) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce assay results from drill holes recently completed as part of at the Company's diamond drilling program at the Magambazi gold prospect, located in the Handeni region of the United Republic of Tanzania.
Interpretation of the drill hole data to date reveals that the "Magambazi Mineralized Zone" is a broad, intense siliceous alteration zone with sulphide mineralization (pyrrhotite, arsenopyrite, pyrite and chalcopyrite) and frequent occurrences of trace visible gold. Contained within this broad envelope are two geologically and geochemically distinct intervals of moderate to high-grade gold mineralization (the "upper" and "lower" lodes). The Magambazi Mineralized Zone is now interpreted as a structurally controlled, steeply plunging gold-bearing shoot that is exposed at surface and increases in width down-section.
High grade mineralization in the Magambazi Mineralized Zone including the upper and lower lodes have been intersected in drill Hole MGZD001 as well as MGZD004, 5 and 7, (all three holes drilled on the section 80 metres south of the discovery hole - see Table 1). Current and future drilling is planned to extend mineralization down dip (greater than 150m below surface) and down plunge.
/T/
TABLE 1 -Magambazi Drill Results to Date - Significant Intercepts
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Inte-
rval Au
East North From To (1) Grade(2)
Drill (met (met Azi- (met (met (met (grams/
Hole -res) -res) muth Dip -res) -res) -res) tonne) Notes
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MGZD001 10176 60440 60 -50 148 207 59 4.28(3) Mineralized
(3) Zone
Including 154 166 12 4.18 Upper Lode
Including 189 206 17 10.38 Lower Lode
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MGZD004 10249 60360 60 -50 110 137 27 2.82 Mineralized
Zone
Including 113 120.5 7.5 2.85 Upper Lode
Including 127 137 10 5.15 Lower Lode
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MGZD005 10247 60360 60 -65 128 169 41 3.32(5) Mineralized
Zone
Including 128 144 16 3.34 Upper Lode
Including 161 169 8 9.95 Lower Lode
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MGZD007 60360 60 -79 156 196 40 Assays Mineralized
Pending Zone
Including 156 169 13 Assays Upper Lode
Pending
Including 187.5 196 8.5 Assays Lower Lode
Pending
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MGZD002 10169.5 60440 60 -75 239 242 3 1.53
And 255 272.6 17.6 0.93
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MGZD003 10172 60440 60 -61 218.2 219.2 1 4.8 Partial
Intercept
Mineralized
Zone
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MGZD006 60520 60 -50 0 0 Assays
Pending
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(1) Drill intercept lengths are down-hole lengths reflecting apparent widths
of mineralization with true widths ranging between 60% - 100% of the
reported down-hole lengths.
(2) The calculation of drill intercept employs a 0.3 gAu/t cut-off and no
cutting grade for high gold values
(3) Previously reported (see press release of October 6, 2009); grade
calculation includes 8 internal waste.
(4) Grade calculation includes 18m internal waste
/T/
Drill holes MGZ002, 3 and 6 encountered mineralization, but transected geology on the footwall of a fault that bounds the Main Zone mineralization immediately north of the discovery hole (MGZD001), resulting in a partial intercept of the Main Zone in hole MGZD003 and the intersection of mineralization apparently unrelated to the Main Zone target in holes MGZD002 and 6.
The Magambazi prospect lies at the southern end of the 11 km Handeni Gold Trend, an area of anomalous gold geochemistry defined by soil sampling surveys and the presence of artisanal mining operations including Canaco's Magambazi, Magambazi North, Semwaliko, Semwaliko North and Majiri Bomba prospects.
Canaco has the option to earn a 100%, interest in the Magambazi property by making a US$1.8 million cash payment and providing a 2% Net Smelter Royalty ("NSR") to Magambazi Mines Ltd., a Tanzanian company that represents the interests of artisanal miners and local families. Canaco also owns a 100% interest in the contiguous 200 square kilometre Kilindi Prospecting License ("PL") which contains the entire strike extent of the Handeni Gold Trend as it has been defined to date.
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. Core is sawn in half with one half shipped for analysis to SGS Laboratories in Mwanza Tanzania. The remainder of the core is stored and secured for future assay verification. 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 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
FOR FURTHER INFORMATION PLEASE CONTACT:
Canaco Resources Inc.
Nick Watters
Investor Relations
604-488-0822 or 1-866-488-0822
investor@canaco.ca
www.canaco.ca
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