Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

September 02, 2005 14:02 ET

Canaco Announces Exploration Results from Alaskan Gold Prospect, Acquires Additional Claims

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 2, 2005) - Canaco Resources (TSX VENTURE:CAN) is pleased to announce the results of Phase I exploration at the Company's 44 square kilometre Hajdukovich ("Haj") property located in the Fairbanks region of Alaska.

The 2005 exploration program conducted at Hajdukovich has built on the work completed by Teck in 2000 and has been successful in confirming the presence of high grade gold mineralization at surface, expanding known gold occurrences, and identifying new areas prospective for gold and copper mineralization.

The Sneaker Zone

The Sneaker zone is the most advanced exploration target at Haj and is defined by several occurrences of visible gold in sheeted quartz veins which occur over a minimum 600-metre-by-900-metre area. Surface sampling, mapping and prospecting at the Sneaker Zone in 2005 has confirmed the presence of high grade gold values from mineralized quartz veins, expanded the area of prospective mineralization, and identified extensions to known zones. A total of 212 bedrock samples were collected from the Sneaker Zone of which 51, or 24% assayed greater than 1.0 gram gold per tonne (gAu/t) and returned a high value of 122 gAu/t. While most of the gold values are attributed to veins as in previous work, significantly, gold has now been identified in altered and brecciated granites and stockwork zones within the host rock to the sheeted vein systems.

The UPEG Saddle Zone

New indications for the potential of copper mineralization at Haj have been returned from the UPEG Saddle Zone where altered (trachytic) granites with disseminated sulphide mineralization return assay values ranging from anomalous to 2.05% Cu, 75 grams silver per tonne (gAg/t).

The PW Zone

The PW Zone was previously identified as a prospective gold target by Teck, but lay outside the current configuration of the Hajd claim group. Prospecting and sampling completed by Canaco in the PW area returned bedrock gold values from silica altered schist and massive sulphide lenses ranging from 2.1 to 8.6 gAu/t and a single sample from a quartz vein grading 50.7 gAu/t. These results are indicative of a prospective mineralizing system and, in response, Canaco has acquired additional ground in this area through the staking of 38 claims covering a total of 5,120 acres extending the southeastern part of the claim group.

Diamond Drilling

Technical difficulties encountered in coring at the Sneaker Zone resulted in diamond drilling being halted prior to the completion of the planned program. Three holes totaling 462 metres were drilled, however, none of these holes reached their targeted depths. As a result, the high-grade gold mineralization identified at surface remains untested by drilling. While the primary drill targets were not reached, zones of alteration and shearing intersected in core returned anomalous gold values and confirmed that the mineralization is characterized gold-bismuth geochemical signature, typical of Alaskan intrusive hosted gold deposits.

"While disappointed by the technical difficulties encountered during drilling, I am encouraged by the exploration results to date," said Andrew Smith, President and CEO. "The 2005 exploration program has enhanced the potential of the Hajdukovich property and generated a number of significant gold and silver exploration targets for further investigation."

The Hajdukovich prospect is a newly discovered gold occurrence in Alaska. The prospect was originally identified and staked by Teck Exploration Ltd. in 2000 as a result of generative regional work aimed at identifying the potential for Pogo type intrusive hosted gold deposits. Canaco has the right to earn a 100% interest in the property by incurring total exploration expenditures of $2-million (U.S.) by Dec. 31, 2008. Teck will hold a back-in right to acquire up to a 65-per-cent interest of the property.

Planning for the next phase of exploration is awaiting additional results and information from follow-up field work. These results are anticipated to be received prior to the end of September.

Additional information on the Hajdukovich property including maps and tables of assay results are available at www.sedar.com or at www.canaco.ca.

The planning, execution and quality assurance/quality control program at Hajdukovich are under the supervision of Curt Freeman, P. Geo. of Avalon Development Corporation of Fairbanks, Alaska. Mr. Freeman is a Qualified Person with respect to National Instrument 43-101.

Canaco Resources is an emerging junior gold exploration company newly listed on the TSX Venture Exchange. The company is actively engaged in the acquisition of gold exploration and development projects.

Andrew Lee Smith, P. Geo, President and C.E.O


Contact Information

  • Canaco Resources Inc.
    Craig Engelsman
    (604) 488-0822 or Toll Free: 1-800-488-0822
    or
    Canaco Resources Inc.
    Nick Watters
    (604) 488-0822 or Toll Free: 1-800-488-0822
    (604) 899-1240 (FAX)
    investors@canaco.ca
    www.canaco.ca