Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

December 05, 2007 06:00 ET

Canaco Announces New Geological Understanding Confirms Important Regional Gold Potential at Handeni Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 5, 2007) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce that recent geological reinterpretation has identified an important geological context that supports the significance of the regional gold potential of the highly prospective Handeni Project, 160 kilometres northwest of the city of Morogoro in the Tanga Region of Tanzania.

Over the past three years, the Handeni Region of Tanzania has emerged as a new and under explored gold district. Recent gold discoveries by local prospectors have occurred on a district scale and have defined an extent of mineralization with a strike-length of over 100 kilometres. The geology and location of the known gold discoveries, which occur in both alluvial and in bedrock settings, suggest the mineralization is controlled by regional structures. In recent months, a series of additional gold discoveries have been made as the potential of the terrane is increasingly recognized.

The high metamorphic grade terranes that include the Handeni Project were originally considered unprospective and hence have received limited exploration attention. However, the aeromagnetic signature of parts of the terranes resembles the curvilinear shapes of the greenstone belts that host the Geita, Bulyanhulu and Golden Pride gold deposits further to the west-northwest and ground mapping shows that the rocks are indeed metamorphosed greenstones.

One of the most significant of the recent discoveries is the Magambazi Gold Prospect, recently optioned to Canaco (see press release dated July 26, 2007), where extensive workings developed by local miners have exposed gold-rich quartz veins and alteration in zones up to 40 meters width, over a strike length of at least 350 meters and proven depth in excess of 70 meters. Additional gold potential exists along strike, where artisanal miners have made new discoveries, down dip and in adjacent sub parallel zones. Initial channel sampling of the exposed mined vein and alteration indicates 7 meters at 5.6g/t Au, including 3 meters @ 10.15g/t Au.

Although there has been no detailed research, recent re-interpretation of Archaean geology of Tanzania by Dr. David Groves, former Professor of Economic Geology and Director of University Western Australia's Centre for Global Metallogeny, indicates that it is most likely that the gold occurrences of the Handeni Project area represent metamorphosed Archaean gold mineralization originally formed along the extension of the same Archaean terrane that hosts the Geita and Bulyanhulu deposits. The Magambazi Gold Prospect therefore has the potential to become an exploration target for a greater than 1.0 Moz deposit, with additional considerable potential in the surrounding Handeni Region.

"Canaco believes this new interpretation is highly meaningful for the exploration of the Handeni Project," said Andrew Lee Smith, Chairman and CEO of Canaco. "The application of the new concept and the geological context it provides for the mineralization at Handeni will undoubtedly allow Canaco to explore this larger project area more effectively."

The planning, execution and quality control programs at the Handeni Project are under the supervision of Andrew Lee Smith, P.Geo. 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.

Additional information on Canaco, including technical reports and other public documents are available on SEDAR at www.sedar.com or from the Company's website at www.canaco.ca.

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

The Company relies on litigation protection for "forward-looking" statements. Forward-Looking Statements: This press release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the obligations of the Company under the Option Agreement and the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein. No independent consultant has rendered an expert opinion on the property.

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
    or
    Canaco Resources Inc.
    Nick Watters
    Investor Relations
    (604) 488-0822 or 1-866-488-0822
    Email: investors@canaco.ca
    Website: www.canaco.ca