VANCOUVER, BRITISH
COLUMBIA--(Marketwire - Nov. 3, 2009) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce
assay results from surface channel sampling at Magambazi North and an expanded
exploration effort that includes additional diamond drilling of the Magambazi
gold prospect at the Company's Handeni Gold Project, located in the Handeni
region of the United Republic of Tanzania.
At
Magambazi North, results from channel sampling of an occurrence of exposed
bedrock mineralization have returned grades of 2.99 grams gold per tonne over 9
meters (including 4.92 grams gold per tonne over 5 meters). The sampled
mineralization at Magambazi North is similar in style and grade to that
observed from the "Big Pit" channel sampling at Magambazi, 700 meters to the
southeast, where recent drill results have confirmed the presence of a
significant gold system consisting of a broad, alteration zone with sulphide
mineralization and frequent occurrences of trace visible gold and containing
two distinct intervals of moderate to high-grade gold mineralization known as
the "upper" and "lower" lodes (see press release dated October 22, 2009).
The
Magambazi North prospect was originally defined by geochemical surveying
designed to identify the source of large alluvial deposits found in river beds
draining the immediate area. The results of the soil sampling program returned
33 samples >100ppb Au with a peak value of 1218ppb Au (1.22g/t Au). The
Magambazi North anomaly is 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 southernmost segment of the 11 kilometre
Handeni Gold Trend contained within Canaco's Handeni property.
Since
the press release dated October 22, 2009 the Company has continued the Phase 1
diamond drilling program, completing an additional 1113 metres in 5 holes
(MGZD008, 9, 10, 11 and 12). This brings the total metres drilled to date in
Phase 1 to 3,202 metres. Recent drilling continues to test the mineralized zone
discovered in MGZD001 along strike and down dip, stepping out both south and north
of the discovery section. Additional information on this latest drilling will
be released once assay information becomes available.
Encouraged
by recent drill results at Magambazi, Canaco's Board has approved an expanded
exploration effort at the Handeni Project to continue to test the extents
mineralization at the Magambazi prospects, identify additional drill targets
along the Handeni Gold Trend and complete a detailed assessment of the controls
on mineralization and the structural geology. The expanded work program will
include:
- 2,000
metres of additional diamond drilling at Magambazi, Magambazi North and
Magambazi Central
- Detailed
airborne Mag/EM survey
- Soil
sampling, regional mapping and trenching
- Rotary
Air Blast ("RAB") drilling along the Handeni Gold Trend – Majili Bomba and
Magambazi West
- Geotechnical
compilation, resource assessment and petrographic and metallurgical analysis
The
Company anticipates being actively engaged in exploration at Handeni for the
remainder of 2009 and throughout 2010.
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 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.