Canaco Resources Inc.

Canaco Resources Inc.

January 31, 2007 14:14 ET

Canaco Resources' Tanzanian Strategic Alliance Grows to 24 Properties

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 31, 2007) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce that the Tanzanian Strategic Alliance property portfolio developed by Canaco's partner Douglas Lake Minerals (OTCBB:DLKM) now totals 24 prospects covering a total of 4,200 square kilometers in Tanzania.

These properties constitute a wide variety of prospects and mineral potential within the north, northwest and central Tanzania. The mineral potential of the portfolio is predominantly gold focused but also includes diamond and other gemstone properties in addition to uranium and base metals. The properties have been acquired by Douglas Lake from private Tanzanian companies and individuals and have been selected on the basis of criteria that includes of the presence of artisanal mining operations, geological merit and proximity to known mineralization or producing mines.

Under the terms of the Strategic Alliance signed with Douglas Lake, Canaco is obliged to perform Initial Technical Assessments on each of these prospects prior to June 1 2008, in exchange for which the Company has the right to option any of those prospects that meet Canaco's exploration criteria. In order to pursue this mandate, Canaco has increased its technical capability on the ground in Tanzania through the engagement of additional geologists and technical personnel bringing Canaco Tanzania's staff to a total of 17 persons under the management of Denis Dillip, Canaco Tanzania's Chief Geologist. The work of assessing the properties has already begun.

"The scale and scope of the property portfolio and mineral potential that has been developed by Douglas Lake is unprecedented in East Africa and represents a significant opportunity to create shareholder value for both companies," said Andrew Lee Smith, Canaco's Chairman and CEO. "In the coming months the initial work conducted and funded by Canaco will advance the potential of the entire property portfolio, identifying prospects that will meet Canaco's exploration criteria and providing a technical assessment of others that will create value for Douglas Lake and its shareholders."

In addition to the technical assessment of the Strategic Alliance properties, the companies are currently engaged in the exploration of the 230 square kilometer Morogoro prospect, where the results from 17 drill holes are currently pending, and negotiations related to acquisition and exploration of the 46 square kilometre Magembe diamond property, adjacent to the Williamson (Mwadui) Diamond mine in Shinyanga District is underway.

In reaction to the Company's growing focus in Mexico and Tanzania, management has decided to terminate the option with Teck Cominco on the Hajdukovich and Macomb properties in Alaska.

Canaco Resources is an emerging junior exploration company trading on the TSX Venture Exchange. The company is actively engaged in the acquisition and exploration of advanced exploration projects.

The Company relies on litigation protection for "forward-looking" statements.

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

Contact Information

  • Canaco Resources Inc.
    Andrew Lee Smith
    Chairman and CEO
    (604) 488-0822 or 1-866-488-0822
    Canaco Resources Inc.
    Nick Watters
    Investor Relations
    (604) 488-0822 or 1-866-488-0822