Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

March 08, 2010 08:23 ET

Canaco Drills 16 Metres Grading 5.45 Grams Gold Per Tonne and 48 Metres Grading 2.71 Grams Gold Per Tonne, Extending the Strike of Magambazi Mineralization

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 8, 2010) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce additional diamond drill results from Magambazi and Magambazi North prospects located at the Company's Handeni Gold Project in the Handeni region of the United Republic of Tanzania.

Significant new drill intercepts from two holes completed at Magambazi include:

  • 48.0m @ 2.71g/t Au, including 7m @ 6.21 g/t Au and 13.6m @ 4.54g/t Au (MGZD0036); and
  • 16.0m @ 5.45g/t Au, including 9.4m @ 8.59 g/t Au (MGZD0035).

The high-grade gold lodes remain open along strike and down plunge to the north.

Interpretation of the structure and new gold results at Magambazi North highlight a 40 degree east-dipping zone of near-surface (all intercepts less than 80m below surface) gold mineralization (Main Zone) which includes new intercepts of 15.4m @ 1.85g/t Au (MGZD0034) and previously reported intercepts (refer to our press release of February 18, 2010) of 18m @ 3.3 g/t Au (MGZD0019), 30.3m @ 3.46 g/t Au (MGZD0023), 12m @ 2.65 g/t Au (MGZD0025), 8m @ 3.25 g/t Au and 8m @ 1.73 g/t Au (MGZD0026).

"Canaco is highly encouraged by the recent results and advances in understanding the gold ore system as a whole", said Andrew Lee Smith, Canaco's President and CEO.

MAGAMBAZI

To date, twenty one diamond drill holes (MGZ001 to MGZ017 & MGZ035 to MGZ038), totaling 5,634 metres, have been drilled to evaluate the Magambazi prospect. New results (see Table 1 below) include intercepts from holes 35 and 36 which were drilled to extend the zone of high-grade gold mineralization to the north and down plunge (i.e. 40m north of hole 12 and 80m north of the Big Pit). Drilling intersected both the Upper and Lower lodes in both holes with excellent widths and grades. Interpretation of the drill results highlights a north plunge of 30 - 50 degrees to the high-grade shoot and mineralization remains open to the north and at depth.

TABLE 1 – Magambazi Drill Results (1)

Drill Hole (3)   From (metres) To (metres) Interval (1) (metres) Au Grade(2) (grams/tonne) Dip/Azimuth
MGZD035 UPPER LODE 166.0 176.5 10.5 2.40 -55.6º/060º
  Including 168.1 174.4 6.3 3.12
LOWER LODE 201.0 217.0 16.0 5.45
  Including 206.7 103.0 9.4 8.59
MGZD036 UPPPER LODE 202.0 207.4 5.4 5.1 -63º/ 060º
LOWER LODE 219.0 267.0 48.0 2.71
  Including 224.0 231.0 7.0 6.21
  and 240.4 254.0 13.6 4.54
         
1. Drill intercept lengths are down-hole lengths reflecting apparent widths of mineralization with true widths ranging between 80% - 100% of the reported down-hole lengths.  
2. The calculation of drill intercept employs a 0.3 gAu/t cut-off and no cutting grade for high gold values  
3. A drill collar location map can be found on the company's website, www.canaco.ca  
               

MAGAMBAZI NORTH

To date, fifteen diamond drill holes (MGZD018 to MGZD020 & MGZ023 to MGZ034) totaling 2,431 metres have been drilled to evaluate Magambazi North. The main body (Main Zone) of the mineralization intersected to date shows continuity over 160m of strike in a 40 degree east-dipping zone of near-surface gold mineralization (all intercepts less than 80m below surface) which include new intercepts of 15.4m @ 1.85g/t Au (MGZD0034) and previously reported intercepts (refer to our press release of February 18, 2010) of 18m @ 3.3 g/t Au (MGZD0019), 30.3m @ 3.46 g/t Au (MGZD0023), 12m @ 2.65 g/t Au (MGZD0025), 8m @ 3.25 g/t Au and 8m @ 1.73 g/t Au (MGZD0026). Every hole into the Main Zone has produced significant near surface intercepts and mineralization on all drill sections remains open down dip. The target also remains open south and north (where soil geochemistry anomalies with a peak value of 1218 ppb Au indicates the system continues for at least 200m north of the most northerly drill hole).

A second gently-dipping mineralized body (West Zone) to the west of the Main Zone has produced significant new intercepts including 13.6m @ 1.71 g/t Au, 11m @ 2.03 g/t Au and 2.4m @ 10.18 g/t Au and previously reported intercepts of 27m @ 2.18g/t Au (refer to our press release of February 18, 2010). The West Zone is possibly the down faulted continuation of the Main Zone position.

TABLE 2 – Magambazi North Drill Results (1)

Drill Hole (3) ZONE From (metres) To (metres) Interval (1) (metres) Au Grade(2) (grams/tonne) Dip/Azimuth
MGZD034 MAIN ZONE 43 58.4 15.4 1.85 -55º /245º
MGZD033 MAIN ZONE 42 44.8 2.8 1.6 -55º /245º
MGZD028 WEST ZONE 180 191 11 2.03 -55º /245º
  and 200 202.1 2.1 5.58  
MGZD029 WEST ZONE 169 182.6 13.6 1.71 -55º /245º
  Including 177 182.6 5.6 3.27  
MGZD031 WEST ZONE 82 84.4 2.4 10.18 -55º /245º
MGZD032 WEST ZONE 73 83.1 10.1 1.23 -55º /245º
1. Drill intercept lengths are down-hole lengths reflecting apparent widths of mineralization with true widths ranging between 80% - 100% of the reported down-hole lengths.  
2. The calculation of drill intercept employs a 0.3 gAu/t cut-off and no cutting grade for high gold values  
3. A drill collar location map can be found on the company's website, www.canaco.ca  
               

The Magambazi and Magambazi North prospects Are part of a 1.4 kilometre long trend of gold mineralization defined by bedrock gold occurrences, artisanal mine workings and soil geochemical anomalies. This 1.4 kilometre trend includes the Magambazi, Magambazi Central and Magambazi North targets (collectively known as the "Magambazi prospects") and represents the southernmost segment of the 11 kilometre Handeni Gold Trend contained within the Company's Handeni property. Ongoing drilling including detailed structural work (through oriented core) is now providing a solid framework for forward exploration. The diamond drilling operation is progressing with the objective of extending the mineralization at Magambazi North to the north, south and down dip, and at Magambazi down dip and along strike.

The planning, execution and monitoring of quality control programs at the Handeni project are under the supervision of Andrew Lee Smith, P.Geo, Canaco's CEO and Dr. David Groves, Canaco's Director of Project Development, Tanzania. Mr. Smith and Dr. Groves are qualified persons as defined by National Instrument 43-101. 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 and public documents about Canaco Resources, including images of 2009 exploration activities, can be viewed at the Company's website www.canaco.ca or at www.sedar.com. Canaco Resources Inc. is listed on the TSX Venture Exchange and is engaged in the exploration and development of Tanzanian gold prospects.

Andrew Lee Smith, P.Geo Dr. Jingbin Wang,
CEO, Canaco Resources  Chairman, Canaco Resources

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release. The Company relies on litigation protection for "forward-looking" statements.

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