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Canaco Resources Inc. (TSX VENTURE:CAN)
("Canaco" or the "Company") is
pleased to announce plans for 2012 exploration and development activities at
its Handeni project in eastern Tanzania. The focus
of Canaco's 2012 work will be to advance Magambazi toward development, with completion of an
initial resource estimate by the end of the first quarter 2012 and a
preliminary economic assessment (PEA) by the end of the third quarter 2012.
The Company plans to simultaneously embark on an aggressive diamond drill
program on other priority drill targets on the property, with the objective
to make a new grass roots discovery in the Handeni
region.
Exploration
Canaco is currently drilling 10,000 metres per month at Handeni
with nine diamond drill rigs and one reverse circulation (RC) rig. Six of the
nine diamond rigs are currently drilling at Magambazi,
where delineation drilling associated with an initial resource estimate is
expected to be complete by the end of January. This work is expected to
include approximately 400 holes totalling up to
110,000 metres of drilling.
On completion of delineation drilling at Magambazi,
the focus of the Handeni exploration program will
shift toward growth and testing of promising targets peripheral to Magambazi, nearby and along the regional mineralized
trend.
Currently, two diamond drill rigs are exploring two high priority targets in
the immediate vicinity of Magambazi - Kuta and the Magambazi North
Extension - which have been defined by the presence artisanal workings and
anomalous geochemical and geophysical responses. Testing of the Magambazi North Extension is immediately north and on
strike of the Magambazi mineralized zone.
Further north and northwest, within six kilometres
the Magambazi discovery, preliminary exploration
work by Canaco, including surface sampling and RC
drilling, indicates additional potential for exploration success. One diamond
drill rig is already operating at Majiri and in the
weeks ahead, diamond drill testing will follow up promising RC results at
several high priority regional targets including Kwadijava and Bahati.
The RC rig is presently drilling at Bahati and will
continue to test preliminary regional targets. A second RC rig is being sourced
to expedite this work.
Development
Concurrent with ongoing exploration at Handeni,
assembly and mobilization of project management and technical team members is
under way. This team will lead the development of key information during the
first quarter and direct the project activities as Canaco
moves from the PEA during the second and third quarters of 2012, through
subsequent project stages. Key information developed during the first quarter
is planned to include completion of the initial mineral resource estimate,
comprehensive metallurgical test work, water supply
identification, measurement of wet season climatic conditions and assembly of
important local/regional information that will serve as input to the PEA.
Although establishment and monitoring of environmental and socio-economic
baselines is a longer term activity, the knowledge and information gained
from these activities begun in January will provide helpful context and
understanding for the PEA and subsequent activities. Further, their early
commencement, extensive drilling information and the comprehensive nature of
the metallurgical program are expected to facilitate advancement of the
project to the next stage in a timely manner.
Completion of the initial mineral resource estimate and metallurgical test
work are scheduled for the end of the first quarter, after which PEA
engineering and estimation will begin. Current planning forecasts completion
of the PEA near the end of the third quarter of 2012, subject to staffing of
suitable engineering resources.
President and CEO Andrew Lee Smith said: "With the plans outlined here,
we are embarking on the most ambitious growth program in the Company's
history. As we advance the Magambazi discovery area
toward an initial resource estimate and PEA this year, the Company is
transforming from grass roots exploration into advanced exploration and
development. At the same time, we are embarking on a regional diamond drill
program aimed at keeping the pipeline full with earlier stage opportunities.
We have the financial strength to advance the project for long-term value
creation."
Additional information including press releases and public documents about Canaco can be viewed at the Company's website www.canaco.ca or at www.sedar.com.
About Canaco
Canaco is a Vancouver-based mineral exploration
company focused on advanced exploration projects in Africa. Built on a
foundation of experienced management, the Company is rapidly advancing the Handeni project in Tanzania and is well positioned to
build shareholder value through discovery and resource development.
Canaco's shares trade on the TSX Venture Exchange
under the symbol CAN.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., President, CEO and
Director
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