Cangold Limited
TSX VENTURE : CLD

Cangold Limited

January 24, 2008 12:07 ET

Cangold Samples up to 298.0g/t Gold on Plomo Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 24, 2008) - CANGOLD LIMITED (TSX VENTURE:CLD) (the "Company") is pleased to announce that Phase I mapping and sampling on the Plomo property have identified five zones of gold mineralization within a northeast trending structural zone that is at least five kilometres long by one kilometre wide. Gold mineralization is related to quartz veining, with sericite and hematite alteration, in subsidiary north-south to northwest striking structures with modest to shallow southwest or northeast dips. The northeast structure is reflected by a distinct linear valley which in the past was the focus of dry placer gold exploitation.

From southwest to northeast the five zones have been named Banco de Oro, San Perfecto, Pavorreal, San Crecencio, and Bonancita. The gold mineralization at Banco de Oro is related to brecciated quartz veins hosted in foliated sericitized rhyolite at the intersection of a low angle northwest striking fault with a northeast trending strike-slip fault. Historic, small scale mine workings extend over 70 metres and of the 36 samples taken to date, the vast majority is anomalous in gold. Initial rock chip sampling across the low angle fault in this area returned 298.0g/t Au over 2.35 metres, 15.1g/t Au over 0.65 metres, 14.5g/t Au over 0.80 metres and 11.0g/t Au over 0.60 metres, while 7 other samples assayed higher than 1.0g/t Au and an additional 7 returned grades above 0.1g/t Au. Copper oxides have also been noted at Banco de Oro, filling or staining the strike slip faults, with the same 36 samples assaying up to 0.53% copper.

The San Perfecto area hosts structurally related stockwork zones, in andesite and fine grained diorite, formed by the intersections of northwest oriented low and high angle fractures and east-northeast oriented faults. Initial grab and chip sampling returned up to 3.32g/t Au over 0.80 metres, with 13 of 29 rock samples assaying more than 0.1g/t Au and most are also strongly anomalous in copper. The areal extent of San Perfecto is still being evaluated but mineralization and alteration have been noted over one kilometre in a northwest orientation.

The Pavorreal structure is hosted in fine grained diorite and is approximately one kilometre long, northwest-trending with a moderate dip. Sericite, hematite, quartz tourmaline breccias, clays and brecciated quartz veins can be traced along the structure and are locally copper stained. In the north portion, preliminary sampling returned 4.82g/t Au in a grab sample and 2.65g/t over 2.0 metres in a chip channel sample. To the south, quartz tourmaline breccias are found to be anomalous in gold, with the only sample to date returning 0.11g/t Au.

At San Crecencio, a northwest oriented zone of quartz veining, with sericite and hematite alteration, is presently being geologically mapped and sampled. Initial sampling has returned locally anomalous results that are being followed up with more detailed investigations.

On the Bonancita zone a grid has been established over a 550 by 550 metre area containing both north-south and northwest trending quartz vein swarms and associated alteration. A chip sampling program of all outcropping areas has been initiated. Gold mineralization appears to be closely related to quartz veining and sheared andesite with disseminated oxidized pyrite. Initial assay results have returned up to 2.53g/t Au over 5.0 metres in chip channel samples and up to 7.62g/t Au in grab samples. Overall, 51% of the 171 samples taken to date on the Bonancita grid are considered anomalous in gold.

In a regional context, gold mineralization at the Plomo Project is believed to be related to the Mojave-Sonora Megashear (MSM). The MSM is a northwest-trending left-lateral, strike slip fault zone up to 5 kilometres wide and extending for hundreds of kilometres through northern Sonora, southern California and Arizona, and is interpreted to transect the southwest corner of the Plomo Project area. Many of the gold mines and prospects in Sonora occur within or are adjacent to the boundary of this regionally extensive structure, including Mexico's largest gold mine, the Penoles / Newmont La Herradura deposit, which lies 25 kilometres to the west of Plomo and contains a global resource of 104,063,824 tonnes averaging 0.84 g/t gold (Penoles 2006 Annual Report). Other gold mines along the MSM include La Choya, and El Chanate in the Caborca region of northwestern Sonora, and Mesquite and Picacho in the Yuma area of southwestern Arizona and southeastern California. The target at Plomo is a low grade, high-tonnage fault-related gold deposit amenable to open pit mining and heap leaching, similar to the aforementioned mines.

The identification of gold mineralization spread over a five by one kilometre area within a complex structural environment is an excellent indication of the potential of the Plomo Property. The relationship of gold mineralization to flat-lying structures is typical of deposits within the MSM. On-going exploration at the Plomo Property includes 1:5000 property scale geological mapping and rock sampling, and detailed rock sampling within the five known mineralized zones. Efforts to synthesize the structural controls on alteration and mineralization are being aided by Dr. Lucas Ochoa of the University of Sonora in Hermosillo, and Dr. Matt Gray of Resource Geosciences de Mexico, also based in Hermosillo. A 1,500 metre Phase I drilling program is being planned for February 2008.

The 4,279 hectare Plomo project lies within the Altar desert of north-western Sonora, approximately 320 kilometres northwest of Hermosillo, Sonora. It is easily accessible by paved highway and secondary gravel roads. Cangold is earning a 100% interest in the Plomo Property, subject to a 2% NSR.

Robert F. Brown, P. Eng and Vice-President of Exploration for Cangold and its wholly owned subsidiary, Coboro Minerales de Mexico, S.A. de C.V., is designated as the Qualified Person for the Plomo Project under the meaning of NI 43-101 and has reviewed this news release. Samples were assayed at SGS Labs in Durango. The Company's QA/QC program includes the regular insertion of blanks, splits, and standards into the sample shipments.

ON BEHALF OF THE BOARD

Robert A. Archer, P. Geo., President & CEO

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

Contact Information

  • Cangold Limited
    Brad Aelicks
    (604) 685-6465
    or
    Cangold Limited
    Don Mosher
    (604) 685-6465
    (604) 899-4303 (FAX)
    Email: info@cangold.ca
    Website: www.cangold.ca