Canaco Resources Inc.

Canaco Resources Inc.

March 01, 2007 10:41 ET

Canaco Announces Morogoro Drill Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 1, 2007) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce results from the Phase 1 exploration at the Company's 230 square kilometre Morogoro property located in the Kilosa District of Tanzania.

The wide-spaced diamond drilling program was part of Phase 1 exploration conducted on seven different target areas (Kiegea, Matandani A and B, Quarry, Safuma A and B, Mkula, Msunguluti, and Mangae) over a 24 kilometre area of interest defined by the presence of artisanal mining operations. The diamond drilling program was completed on December 7, 2006 and totaled 2508 meters in 25 drill holes. All of the drill core was delivered to SGS laboratories in Mwanza for analysis. To date, all gold assays have been received from the 25 hole program. Base metal analyses remain outstanding.

Generally, the analyses of samples from the 25 coarsely spaced diamond holes from the seven areas tested has indicated the presence of anomalous gold values from flat-lying, near surface zones of secondarily re-precipitated gold mineralization, with widths of up to 25 meters. However, three areas have emerged as having indications worthy of additional exploration; the Kiegea, Mangae and Matandani B areas

These results are:

Selected Drill Results - Morogoro Project, Tanzania

From To Grade Width
Hole Area (meters) (meters) (g Au/t) (meters)
DH06-01 Kiegea 0.0 12.0 0.31 12.0
Incl. 6.5 9.0 0.99 2.5
DH06-11 Matandani B 15.0 24 1.31 9.0
Incl. 16.0 18.0 5.82 2.0
DDH06-24 Mangae 18.0 43.5 0.18 25.5
Incl. 19.0 28.0 0.36 9.0

"The Phase 1 exploration program has been successful in meeting the objective of providing an initial evaluation of the geological potential of the 24 square kilometre area of interest, defined by the presence of artisanal mining activity", said Andrew Lee Smith, Canaco's Chairman and CEO. "These results will assist us in focusing additional exploration work that will further assess the potential for a bulk mineable deposit at Mangae, Kiegea and Matandani B."

The planning, execution and quality control programs at the Morogoro project are under the supervision of Andrew Lee Smith, P.Geo. Mr. Smith is a qualified person as defined by National Instrument 43-101.

Additional information including images, technical reports on the Morogoro gold prospect and other public documents are available on SEDAR at or from the Company's website at

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