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Cangold Identifies New Gold Zones And Commences Phase I Drilling
Program At Plomo; Sells Interest In Thorn To Rimfire
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CANGOLD LIMITED (TSX-V: CLD, the "Company") is pleased to announce that
Phase I mapping and sampling on the Plomo property in Sonora, Mexico
have identified two new gold zones, thereby expanding the prospective
area to five kilometres long by three kilometres wide. As part of the
Company's efforts to quickly advance the Plomo project, a 1,500 metre
Phase I diamond drilling program has commenced on the property.

The first new area of gold mineralization, within the Pavorreal area,
is located between the Pavorreal and San Perfecto structures, and has
been mapped along a 600 metre trend with widths to 100 metres. The
Pavorreal gold mineralization is associated with gossanous, sericitic,
schistose andesite with local quartz-tourmaline-hematite breccias,
related to a series of parallel NW trending low angle NE dipping shears
(thrusts?). Initial rock sampling along the new structures included
values to 10.8g/t gold (grab sample) and 5.82g/t gold over 2.0 metres,
with 13 of the 25 samples taken assaying >0.3g/t gold (see geology map
on web-site at www.cangold.ca).

The second new area, named the Culebra zone, is associated with the
south bounding, NE trending, moderately NW dipping shear which
presently defines the southeast side of the prospective area. The
Culebra zone is an 800 metre long by 300 metre wide gossan along the
sheared contact between andesite and a monzonite intrusion. Historic
workings contain secondary copper mineralization and sampling has
demonstrated the presence of gold. Initial rock sampling returned
values to 4.28g/t gold and 0.21% copper over 0.85 metres, 0.25g/t gold
and 3.43% copper (grab sample) and 0.93g/t gold and 1.65% copper over
3.0 metres. Of the initial 25 rock chip samples, gold was >0.3g/t in 9
samples, while copper was >1% in 13 of 25 samples.

The Phase 1 core drilling program, now underway, will comprise
approximately 1,500 metres in 9 holes. Targets to be tested in this
program include the Banco de Oro, Pavorreal, San Perfecto, and
Bonancita zones. The idea of the first-pass drilling is to gain a
better understanding of the structural control of the gold
mineralization and to look for areas where the flat-lying gold-bearing
structures coalesce into a larger zone with resource potential.

Property scale geological mapping and rock sampling is continuing with
a particular effort in identifying major structures, and associated
alteration and mineralized zones. To date, this work has outlined
seven zones of alteration and gold mineralization on the Plomo project.
Details of the Banco de Oro, San Perfecto, Pavorreal, San Crecencio,
and Bonancita zones are described in the Cangold news release dated
January 22, 2008. All zones are associated with shearing and thrust
faulting within a 5 kilometre (NE-SW) by 3 kilometre area. Within this
structural corridor, gold mineralization is related to brecciated
quartz veining with sericite, tourmaline, and hematite alteration,
associated with shallow NE dipping thrust faults. The identification
of such widespread gold mineralization within a complex structural
environment is an excellent indication of the potential of the Plomo
Property. As mapping proceeds, specific attention will also be paid to
areas where the NW and NE structures intersect as these areas are
particularly suitable structural traps for gold mineralization.

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.

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.

In other news, Cangold has signed an agreement with Rimfire Minerals
Corp. whereby the latter will purchase Cangold's 51% interest in the
Thorn Property in northern British Columbia. While Cangold still views
the Thorn Property as prospective, the Company's focus in Mexico
precludes the near term funding of any exploration at Thorn. As
Rimfire is focused on exploration in British Columbia, the project can
now move forward with Cangold potentially benefiting from the
advancement of the project.

Terms of the sale call for Rimfire to pay $100,000 and issue 100,000
shares of Rimfire to Cangold upon signing, and for Cangold to receive
25% of any cash payments and share issuances resulting from the future
option and/or sale of the property to a third party. In addition,
Cangold will receive $1,000,000 or 250,000 Rimfire shares (at Rimfire's
election) should the property be placed into Commercial Production
while Rimfire owns at least 10% of the property.

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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