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      Cangold Reports On Phase I Drilling Program At Plomo
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CANGOLD LIMITED (TSX-V: CLD, the "Company") has completed the Phase I
core drilling program on the Plomo Project in northwestern Sonora,
Mexico.  The objective of the first-pass drilling was to gain a better
understanding of the structural control of the gold mineralization
within the 5 by 3 kilometre structural corridor identified by surface
mapping and sampling, and to look for areas where the flat-lying
gold-bearing structures coalesce into a larger zone with resource
potential.

The Phase 1 drilling program comprised 1,498.5 metres in 10 widely
spaced holes.  Targets tested in this program included the
gold-bearing, altered, low angle structures of Banco de Oro (1 hole),
Pavorreal (6 holes), San Perfecto (2 holes), and Bonancita (1 hole)
zones.  In most holes, the targeted structures were intersected as
planned and, to some degree, were gold-bearing.

Hole SP08-001, drilled immediately below the Banco de Oro workings (up
to 298.0g/t gold), did not intersect the structure, likely due to a
fault offset.  Drill holes SP08-002 and SP08-003 were drilled at San
Perfecto (see drill-hole map on the Company web-site at
www.cangold.ca).  The low angle structural zones noted on surface were
intersected and show variable intensity of fracturing, brecciation,
chloritization, quartz veining, silicification and disseminated pyrite.
 SP08-002 intersected 4.0 metres grading 0.92g/t gold starting at 5.7
metres.  SP08-003 was more intensely fractured and altered and
intersected 11.65 metres grading 0.66g/t gold starting at 18.3 metres,
including 2.28g/t over 2.0 metres.  Drill intersections are believed to
represent true widths.

Core holes SP08-004 to SP08-009 were drilled in the Pavorreal area and
intersected wide sections of intense alteration.  SP08-006 intersected
30 metres of well foliated rock with tourmaline and hematite-jarosite
alteration but yielded no significant assays.  Holes SP08-005 and
SP08-008 intersected wide intervals of silicified, fractured, and
pyritic diorite but contained only narrow intervals of gold
mineralization with anomalous copper, lead and zinc (see table below).
SP08-010 was drilled at Bonancita with the objective of hitting the
very fractured/sheared pyritic zone observed on surface.  It
intersected 130 metres of sheared and crackle-brecciated andesite, with
disseminated pyrite and sporadic brecciated quartz veins but returned
no significant assays.

The Phase I widely spaced drilling at Plomo has demonstrated that the
flat lying structures observed on surface play an important role in
localizing gold mineralization.  It would appear that another set of
controls, such as cross-cutting structures, is required in order to
upgrade the gold.  As such, detailed geological mapping and rock
sampling continued in the San Perfecto area after the drilling was
completed, with a particular effort towards identifying major
structures, alteration types and geological units in order to better
discern the spatial relationships and controls of the gold
mineralization.  This work continues to outline significant gold
mineralization, over an area approximately 400 metres across,
associated with tourmaline-sericite alteration, gossan, and low angle
structures in diorite and granodiorite east of SP08-003.  Of 21 new
chip channel samples collected across veins, structures, and more
intensely altered areas, 13 assayed greater than 0.3g/t gold, and of
those 5 were greater than 1.0g/t gold.

At Pavorreal, where widespread gold was encountered in surface sampling
yet no significant values encountered in the subsequent drilling, a
similar program of detailed geological, alteration and structural
mapping is proposed.  A new compilation of all this data will then be
used to generate new targets for future drilling.

Highlights of Phase I Drilling:
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Drill Hole       From (m)   To (m)   Interval (m)     Au g/t
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SP08-002            5.70     9.70           4.00        0.92
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including           7.70     9.70           2.00        1.60
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SP08-003           18.30    29.95          11.65        0.66
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including          21.00    23.00           2.00        2.28
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SP08-005           30.00    32.00           2.00        1.06
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SP08-008            9.30    11.30           2.00        0.59
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In a regional context, gold mineralization at the Plomo Project is
believed to be related to the Mojave-Sonora Megashear (MSM).  The MSM
is a northwest-trending left-lateral, strike slip fault zone up to 5
kilometres wide and extending for hundreds of kilometres through
northern Sonora, southern California and Arizona, and is interpreted to
transect the southwest corner of the Plomo Project area.  Many of the
gold mines and prospects in Sonora occur within or are adjacent to the
boundary of this regionally extensive structure, including Mexico's
largest gold mine, the Pe�oles / Newmont La Herradura deposit, which
lies 25 kilometres to the west of Plomo and contains a global resource
of 104,063,824 tonnes averaging 0.84 g/t gold (Pe�oles 2006 Annual
Report).  Other gold mines along the MSM include La Choya, and El
Chanate in the Caborca region of north-western Sonora, and Mesquite and
Picacho in the Yuma area of south-western Arizona and south-eastern
California.  The targets at Plomo are low grade, high-tonnage
fault-related gold deposit amenable to open pit mining and heap
leaching, similar to the aforementioned mines.  The relationship of
gold mineralization to flat-lying structures is typical of deposits
within the MSM and the Company is encouraged by the confirmation of
this relationship on the Plomo Property. 

The 4,279 hectare Plomo Project lies within the Altar desert of
north-western Sonora, approximately 320 kilometres northwest of
Hermosillo, Sonora.  It is easily accessible by paved highway and
secondary gravel roads.  Cangold is earning a 100% interest in the
Plomo Property, subject to a 2% NSR.

Robert F. Brown, P. Eng and Vice-President of Exploration for Cangold
and its wholly owned subsidiary, Coboro Minerales de Mexico, S.A. de
C.V., is designated as the Qualified Person for the Plomo Project under
the meaning of NI 43-101 and has reviewed this news release.  Samples
were assayed at SGS Labs in Durango.  The Company's QA/QC program
includes the regular insertion of blanks, splits, and standards into
the sample shipments.

FURTHER INFORMATION
For further information please visit the Company's website at
www.cangold.ca or contact Brad Aelicks or Don Mosher at telephone
604 685 6465, fax 604 899 4303 or e-mail info@cangold.ca.

ON BEHALF OF THE BOARD

"Robert A. Archer"

Robert A. Archer, P. Geo.,
President & CEO

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Copyright (c) 2008 CANGOLD LIMITED (CLD)  All rights reserved.  For
more information visit our website at http://www.cangold.ca/ or send
mailto:info@cangold.ca
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