VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 21, 2013) - Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco" or the "Company") today received initial drill results from Shark Minerals Inc. ("Shark") from the Galat Sufar project (the "Galat Sufar Project") in Northern Sudan.
On December 17, 2012, Canaco announced it had entered into a binding agreement to acquire all of the outstanding common shares of Shark in exchange for common shares of Canaco, conditional upon, among other things, certain assets of Canaco being spun out to a new company to be held pro rata by current Canaco shareholders (the "Transaction"). For full details of the Transaction, refer to Canaco's news release dated December 17, 2012, available on the Company's website at
www.canaco.ca. The Transaction is subject to, among other things, the approval of the TSX Venture Exchange, the approval of the Court for the spinout transaction and the favourable vote by Canaco shareholders at a special meeting called to approve it. The Company has scheduled its special meeting to be held on February 28, 2013 and it is expected that the Transaction will be completed shortly thereafter.
Exploration work to date in Block 14 has identified six exploration targets. Shark is earning a 70% interest in Block 14 through the payment of US$9.5 million in staged acquisition payments. Of these, US$3.5 million has been paid to date.
Shark completed a total of 2,116 metres of drilling in 15 holes at the Galat Sufar South target, on Block 14 in late 2012. This comprised two diamond core (DD) holes (355 metres) and 13 reverse circulation (RC) holes (1,561 metres). The table below shows highlighted results from this first drilling in the area:
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Au g/t
Hole Au g/t cut to
Hole Type From To Metres uncut 10 g/t Comments
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GSDD001 DD 80 161 81 1.22 1.22
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GSDD002 DD 43 74 31 3.70 3.13 0-43m yet to be assayed
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77 98 21 1.36 1.36
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136 148 12 0.80 0.80
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161 174 13 1.74 1.74
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210 222 12 1.64 1.64
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GSRC001 RC 26 85 59 2.67 2.67
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94 120 26 2.48 2.48 Hole ends in grade
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GSRC002 RC 5 21 16 5.02 3.59
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42 49 7 1.17 1.17
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54 95 41 2.30 2.30
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GSRC003 RC 0 10 10 4.61 4.24
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27 36 9 5.42 4.13
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101 120 19 13.6 6.39 Hole ends in grade
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GSRC004 RC 68 77 9 1.21 1.21
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86 121 35 1.42 1.42 Hole ends in grade
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GSRC005 RC 21 25 4 1.02 1.02
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29 38 9 0.68 0.68
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GSRC006 RC 18 25 7 13.18 6.99
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110 120 10 2.77 2.61 Hole ends in grade
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GSRC007 RC 8 15 7 2.64 2.64
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68 78 10 1.13 1.13
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GSRC008 RC 12 18 6 1.92 1.92
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81 99 18 0.86 0.86
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GSRC009 RC 4 8 4 0.49 0.49
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11 16 5 2.01 2.01
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19 24 5 6.63 6.63
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77 84 7 1.92 1.92
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GSRC010 RC 23 34 11 0.65 0.65
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GSRC011 RC 0 35 35 3.65 3.60
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47 51 4 0.56 0.56
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57 72 15 3.27 3.03
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76 79 3 1.40 1.40
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GSRC012 RC 0 63 63 2.39 2.03
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66 84 18 0.76 0.76
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89 94 5 2.61 2.61
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99 106 7 0.84 0.84
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GSRC013 RC 0 16 16 1.85 1.85
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97 101 4 0.93 0.93
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Note: Drilling results are quoted as downhole intersections. The geology of the prospect is not fully understood and the true width of the mineralisation is variable but is estimated to be between 40% and 90%. The reported intercepts for RC and diamond drilling were determined using a cut-off grade of 0.50g/t Au with a maximum of 3m internal dilution being incorporated into the intercept where appropriate. Intercepts have been reported both with and without the application of a 10g/t top cut.
Simon Jackson, Director of Shark, commented: "These initial drill results from our first target at Block 14 have exceeded our expectations with all 15 drill holes intersecting gold mineralization. This early success supports our decision to invest in exploration in Sudan and demonstrates the potential of the Nubian Shield to host significant gold mineralization. Our belief is further strengthened by the numerous other targets that have been identified by our exploration team and confirmed by trenching. Our second phase drill program is now under way to test other targets and continue exploration at Galat Sufar South".
The table below shows selected trench and chip channel results from the initial exploration target areas at Block 14.
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Au g/t
cut to
Trench Target From To Metres Au g/t 10 g/t
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14HC003RA Galat Sufar South 8 48 40 1.70 1.70
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14HC003RB Galat Sufar South 0 14 14 0.78 0.78
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14HC004 Galat Sufar South 30 82 52 2.12 2.12
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14HC005 Galat Sufar South 14 24 10 9.60 7.08
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Galat Sufar South 84 92 8 2.16 2.16
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14HC007 Galat Sufar South 22 44 22 6.83 4.87
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Galat Sufar South 60 88 28 2.21 2.05
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14HC008 Galat Sufar South 12 46 34 4.45 4.34
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Galat Sufar South 56 80 24 1.23 1.23
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14HC009 Galat Sufar South 22 30 8 4.13 3.70
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Galat Sufar South 56 66 10 0.93 0.93
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14HC010 Galat Sufar South 72 100 28 1.93 1.93
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Galat Sufar South 110 120 10 0.45 0.45
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14HC011 Galat Sufar South 8 20 12 0.97 0.97
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14HC012 Galat Sufar South 4 20 16 2.19 2.19
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Galat Sufar South 26 52 26 1.39 1.39
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14HC013 Galat Sufar South 44 48 4 4.04 4.04
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14HC064 Galat Sufar South 24 34 10 1.82 1.82
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Galat Sufar South 56 66 10 0.89 0.89
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Galat Sufar South 160 168 8 1.63 1.63
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14HC065B Galat Sufar South 0 6 6 0.93 0.93
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14HC065C Galat Sufar South 24 42 18 2.02 1.66
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14HC066A Galat Sufar South 0 12 12 1.09 1.09
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Galat Sufar South 18 28 10 1.74 1.74
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Galat Sufar South 36 64 28 2.58 2.45
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14HC066B Galat Sufar South 2 16 14 6.02 5.89
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14HC070 Galat Sufar South 54 64 10 1.04 1.04
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14TR039A Galat Sufar South 426 504 78 1.95 1.95
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14TR039B Galat Sufar South 12 32 20 1.80 1.80
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14TR039C Galat Sufar South 20 78 58 2.43 2.42
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14TR039D Galat Sufar South 8 22 14 0.59 0.59
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14TR039E Galat Sufar South 62 78 16 0.61 0.61
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Galat Sufar South 182 218 36 0.59 0.59
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Galat Sufar South 252 304 52 0.85 0.85
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Galat Sufar South 388 460 72 1.42 1.42
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Galat Sufar South 496 594 98 0.79 0.79
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Galat Sufar South 941 956 15 0.54 0.54
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Galat Sufar South 1008.5 1021 12.5 0.58 0.58
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Galat Sufar South 1036 1066 30 0.67 0.67
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Galat Sufar South 1083.5 1103.5 20 4.12 1.70
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Galat Sufar South 1196 1211 15 2.60 2.19
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14TR040C Galat Sufar South 24 34 10 0.49 0.49
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14TR040D Galat Sufar South 20 68 48 0.65 0.65
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14TR040E Galat Sufar South 0 20 20 1.57 1.57
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Galat Sufar South 120 162 42 0.87 0.87
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14TR040F Galat Sufar South 50 84 34 0.53 0.53
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14TR030A Galat Sufar North 300 308 8 0.51 0.51
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Galat Sufar North 268 274 6 0.55 0.55
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14TR033 Galat Sufar North 64 70 6 1.82 1.82
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14TR042 Galat Sufar North 398 408 10 10.66 6.84
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418 434 16 6.29 5.64
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14HC015 Area 3 32 38 6 1.19 1.19
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14HC017 Area 3 42 58 16 2.32 2.32
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14HC024 Area 5 20 54 34 0.77 0.77
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14HC027 Area 5 18 22 4 3.85 3.85
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14HC028 Area 5 20 86 66 0.46 0.46
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14HC030 Area 5 48 58 10 0.73 0.73
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14HC031 Area 5 74 84 10 1.19
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14HC032 Area 5 44 56 12 1.19 1.19
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14HC033 Area 5 42 48 6 0.90 0.90
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14HC034 Area 5 18 28 10 2.42 2.42
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14HC035 Area 5 10 18 8 0.57 0.57
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14HC001 Mussieye 4 28 24 2.26 2.26
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14HC002 Mussieye 8 12 4 3.15 3.15
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14HC069 Mussieye 37 61 24 2.23 2.23
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Mussieye 71 97 26 0.99 0.99
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Note: Results are quoted for selected trench (TR) and chip channel traverses (HC), the latter being used in areas of outcrop. The reported intercepts were determined using a cut-off grade of 0.20g/t Au and may contain sections of internal dilution. Intercepts have been reported both with and without the application of a 10g/t top cut.
Quality Control
The technical contents of this news release have been reviewed and approved by Stuart Mills, BSc., MSc, a Qualified Person pursuant to National Instrument 43-101. Mr. Mills is the Sudan Manager of Shark and a Member of the Institute of Materials, Minerals and Mining. Samples are prepared and analyzed by fire assay using a 50 gram charge at the ALS Chemex facility at Rosia Montana in Romania in compliance with industry standards. Field duplicate samples are taken and blanks and standards are added to every batch submitted.
About Shark
Shark is a privately held, British Columbia incorporated resource company engaged in the acquisition and exploration of mineral properties in East Africa. Shark was founded and is managed by the former executives of Red Back Mining Inc. Shark is currently focused on exploring the Galat Sufar Project, a 20,020 square kilometre land package in northern Sudan near the border with Egypt that forms part of the Arabian-Nubian Shield.
About Canaco
Canaco is a Vancouver-based mineral exploration company focused on advanced exploration projects in Africa. The Company has $90 million cash and no debt. Canaco's shares trade on the TSX Venture Exchange under the symbol CAN.
Additional information about Canaco including news releases, interim financial statements and other public documents can be viewed at the Company's website
www.canaco.ca or at
www.sedar.com.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., President, CEO and Director
Cautionary Statement Regarding Forward-Looking Information
This news 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 or statements that certain events "may" or "will" occur. Forward-looking statements in this news release include, but are not limited to, statements relating to completion of the Transaction and the expected timing; and the plans of Canaco following the Transaction, including exploration activities, in the Galat Sufar Project. 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; the expected timing, costs, and results of the PEA; the expected burn rate; 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. Neither the Company nor Shark undertakes any obligation to update forward-looking information if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance with applicable securities laws.