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Cangold Discovers Gold Zone At Los Venados
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CANGOLD LIMITED (TSX-V: CLD, the "Company") is pleased to announce that
a gold bearing zone has been discovered on the 3,200 hectare Los
Venados project, adjacent to the Mulatos Mine of Alamos Gold Inc., in
south eastern Sonora State, Mexico. Initial chip and grab sampling of
silica vein material on the Duraznito Zone resulted in 20 of 35 samples
returning significant gold values greater than 0.1 g/t, nine of the 20
assaying greater than 1.0 g/t and one sample assaying 50.9 g/t gold.
The dimension of the area sampled to date is approximately 120 metres
long by 65 metres wide.

The aforementioned samples were taken from multi-directional quartz
vein swarms hosted along a contact between Tertiary age andesite tuff
and porphyritic dacite volcanics. These units are host to more than
four square kilometres of intense argillic and silica alteration which
is presently being systematically mapped and sampled (approximately 20%
complete - see geology and sample maps on the Cangold web-site at
www.cangold.ca). Geological field evidence and initial PIMA analysis
(to classify the argillic alteration) indicates that the alteration is
high-sulfidation epithermal in nature, similar to that on the adjacent
Mulatos Mine project.

Los Venados lies within the emerging Mulatos gold mining district - a
15-20 kilometre long northwest trending belt of strong hydrothermal
alteration and gold mineralization in Tertiary volcanic rocks within
the Sierra Madre Mountains. The target at Los Venados is a high
sulphidation epithermal gold deposit amenable to open pit mining and
heap leaching, similar to Alamos Gold Inc.'s (AGI: TSX) Mulatos gold
deposit, which contains a global resource of 3.71 million ounces at a
0.5 g/t Au cut-off grade (Alamos Gold website). The southern boundary
of the Los Venados claim is located within 1,500 metres of the Estrella
open pit, which contains Proven & Probable Reserves of 31,900,000
tonnes at a grade of 1.64 g/t Au for a total of 1,683,000 ounces of
gold.

Samples were assayed by SGS in Durango, Mexico. Robert F. Brown, P.Eng
and Vice President of Exploration for the Company, is the Qualified
Person for the Los Venados Project, under the meaning of NI43-101, and
has reviewed these results. Cangold can acquire a 100% interest in the
Los Venados property by making staged cash payments totalling
CDN$250,000 and issuing 500,000 shares over 5 years. The acquisition
is subject to a 2% NSR, half of which can be purchased for CDN$500,000.


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

The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release

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Copyright (c) 2007 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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