Canaco Intersects Near-Surface Gold in
Regional RC Drill Program at Handeni, Including 37 Metres at 1.02 Grams Per Tonne Gold and 25 Metres at 1.21
Grams Per Tonne Gold
Vancouver, BC, March 28, 2011 - Canaco
Resources Inc. (TSX-V: CAN) ("Canaco" or the
"Company") is pleased to report reverse circulation (RC) drill
results at the Company's Handeni gold project in
Tanzania. Drilling at the Kwadijava area (formerly
known as Semwaliko North), 6.25 kilometres
NW of Magambazi, has intersected near-surface gold
mineralization over a 240 metre strike length,
including:
- 37 metres
at 1.02 grams per tonne gold (hole MGZC054, from
5 metres), including 5 metres
at 3.05 grams per tonne gold;
- 25 metres
at 1.21 grams per tonne gold (hole MGZD049, from
9 metres) including 6 metres
at 2.12 grams per tonne gold (from 28 metres), and
- 11 metres
at 1.96 grams per tonne gold (hole MGZD050, from
6 metres), including 3 metres
at 5.73 grams per tonne gold
A full table
of drill results and drill hole location map are available on the Canaco website at www.canaco.ca.
Gold mineralization at Kwadijava was intersected on
six sections of drilling at 40-metre centres to a
maximum depth of 45 metres below surface, and is open
for several hundred metres to the north and south.
Drilling north and south of the zone of gold mineralization will be conducted
in the near future. Drilling was targeted on a near-surface magnetic anomaly
defined during a detailed aeromagnetic survey conducted late in 2010, in the
vicinity of significant artisanal bedrock workings (up to 450 metres long, 30 metres wide and
several metres deep), and strong soil gold anomalism.
Several similar magnetic anomalies are present elsewhere along the Majiri-Kwadijava Trend (MK Trend).
Canaco President and CEO Andrew Lee Smith said:
"These results give us confidence that the robust mineralization at Magambazi continues along the MK Trend, and confirm the
regional nature of the mineralization at the Handeni
project. While additional drilling is required, these results substantially
broaden the potential for economic deposits on the property."
The gold mineralization is hosted mainly within an amphibolite
unit at the intersection of a steeply dipping NNE (190 degree)-trending
shear/fault structure: However, there are several intercepts present in the
footwall gneiss indicating persistence of the veins and mineralizing structures
into footwall stratigraphy. The mineralization is
characterized by quartz-veined silica-garnet altered amphibolite
with pyrite, arsenopyrite and lesser chalcopyrite and
graphite. The intersection of the fault and stratigraphy
create a shallowly plunging body of gold mineralization. The mineralization is
very similar in character to the Magambazi North area
at Magambazi Hill, approximately 6.25 kilometres SSE.
The successful RC drilling campaign at Kwadijava has
highlighted potential for satellite bodies of gold mineralization in the area
surrounding Magambazi and has provided impetus for Canaco to continue the regional exploration campaign of
drilling priority targets.
Exploration History
Gold mineralization at Kwadijava was discovered by
artisanal miners approximately five years ago. Rock chip sampling of the
workings in 2007 produced a peak value of 4.18 grams per tonne
gold with four other assays greater than 0.84 grams per tonne
gold. Channel rock chip sampling in 2007 across the vein swarms in the shallow
artisanal diggings produced peak results of 10 metres
at 2.54 grams per tonne gold and two metres at 14.3 grams per tonne
gold (refer to Canaco's press release dated December 12, 2007).
Soil sampling at 200- by 40-metre spacing yielded peak values of 1,849 and 318
parts per billion gold. RC drilling in 2008 intersected
12 metres at 1.04 grams per tonne
gold from 25 metres (refer to Canaco's press release
dated August 28, 2008), but much of the RC drilling was targeting a
deep extension to the surface mineralization and failed to intersect the actual
target zone. Ten drill holes for 1,027 metres of
shallow RC drilling were completed. Drill hole MGZC007 was abandoned in 2.85
grams per tonne gold in a vertical fault zone and
remained open at depth. The discovery of Magambazi
delayed work at the prospect (refer
to Canaco's press release dated September 28, 2009).
Detailed low-level airborne magnetics, detailed
mapping, and IP surveys across the project area provided new impetus to target
the shallowly plunging shoot-style mineralization with RC drilling in early
2011.
Quality Control
The planning, execution and monitoring of Canaco's
quality control programs at the Handeni project are
under the supervision Jeff Heidema, P.Geo, Canaco's VP Exploration,
and Dr. David Groves, Canaco's Director of Project
Development. Mr. Heidema and Dr. Groves are Qualified
Persons as defined by National Instrument 43-101. RC drill samples are prepared
and analysed at the SGS Geochemical Laboratory in Mwanza, Tanzania. Samples are processed by Fire Assay with
A.A. finish under the SGS FAA505 protocol. 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, press releases and public documents about Canaco, including a complete list of drill hole intercepts and drill collar maps, 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 in Africa. Built on a foundation of
experienced management and focused on rapidly advancing exploration projects in
Tanzania and Ethiopia, Canaco 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.
For further information contact:
Meghan Brown, Director Investor Relations
tel: 604-488-0822 or 1-866-488-0822
email: investors@canaco.ca
website: www.canaco.ca
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo
President, CEO and Director
Cautionary
Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the
meaning of applicable Canadian securities legislation. Generally,
forward-looking information can be identified by the use of forward-looking
terminology such as "anticipate", "believe",
"plan", "expect", "intend", "estimate",
"forecast", "project", "budget",
"schedule", "may", "will", "could",
"might", "should" or variations of such words or similar
words or expressions. Forward-looking information is based on reasonable
assumptions that have been made by the Company as at the date of such
information and is subject to known and unknown risks, uncertainties and other
factors that may cause the actual results, level of activity, performance or
achievements of the Company to be materially different from those expressed or
implied by such forward-looking information, including but not limited to:
risks associated with mineral exploration and development; metal and mineral
prices; availability of capital; accuracy of the Company's projections and
estimates; interest and exchange rates; competition; stock price fluctuations;
availability of drilling equipment and access; actual results of current
exploration activities; government regulation; political or economic
developments; environmental risks; insurance risks; capital expenditures;
operating or technical difficulties in connection with development activities;
personnel relations; the speculative nature of strategic metal exploration and
development including the risks of diminishing quantities of grades of
reserves; contests over title to properties; and changes in project parameters
as plans continue to be refined. Forward-looking statements are based on
assumptions management believes to be reasonable, including but not limited to
the price of gold; the demand for gold; the ability to carry on exploration and
development activities; the timely receipt of any required approvals; the
ability to obtain qualified personnel, equipment and services in a timely and
cost-efficient manner; the ability to operate in a safe, efficient and
effective manner; and the regulatory framework regarding environmental matters,
and such other assumptions and factors as set out herein. Although the Company
has attempted to identify important factors that could cause actual results to
differ materially from those contained in forward-looking information, there
may be other factors that cause results not to be as anticipated, estimated or
intended. There can be no assurance that such information will prove to be
accurate, as actual results and future events could differ materially from
those anticipated in such information. Accordingly, readers should not place
undue reliance on forward-looking contained herein, except in accordance with
applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.
Copyright �
2011 CANACO RESOURCES INC. (CAN) All rights reserved.
For more information visit our website at http://www.canaco.ca/ or send email to investors@canaco.ca ..
Message sent on Mon Mar 28, 2011 at 5:55:57 AM Pacific Time