Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

March 26, 2008 06:00 ET

Canaco Commences Drill Program at Handeni Gold Project, Tanzania

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 26, 2008) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce the initiation of exploration drilling at the Company's 100% owned Handeni gold project located in the United Republic of Tanzania.

The drilling at Handeni will assess gold mineralization that is currently the object of intensive artisanal mining along a WNW trend over a known strike length of 6.25km. The Handeni Gold Trend has significant gold mineralization at four separate prospects over the 6.25km of strike, including Magambazi, North Magambazi, Semwaliko and Semwaliko North. All workings are located within a regional WNW structural corridor interpreted from regional aeromagnetic survey. Surface geochemical sampling is currently being conducted to test the entire area.

The Handeni drilling will comprise three separate programs. Phase 1 will consist of reverse circulation ("RC") drilling at Semwaliko North totaling approximately 2,000m. The RC program has started and a drill rig is on site where it will test the gold mineralization, but will also complete water bores to support the Phase 2 diamond drill program. Diamond drilling at Magambazi and Magambazi North will total approximately 2,700m and will also follow up on the RC drilling at Semwaliko North. A reverse air blast ("RAB") Phase 3 program has been planned to target soil geochemical anomalies along the trend that could generate additional diamond drill targets.

Semwaliko North Prospect

In the northern part of the Handeni Gold Trend, at Semwaliko North, the RC drill program is planned to test bedrock artisanal workings that extend over a strike length of 500m and over widths up to 40m. The best rock chip channel samples previously reported from the project (release December 10, 2007) were 10m @ 2.54g/t Au and 2m @ 14.3g/t Au. The RC drill program will test mineralization to a depth of 140m over 500m strike. The Semwaliko North prospect has been further enhanced by recent soil geochemical results that have extended the mineralization to a total strike length of 1.1km at a 40ppb Au cutoff. Three RC drill holes will test this southern extension at 160m centers.

Magambazi Prospect

The planning of a diamond drill program to evaluate the known gold mineralization of the Magambazi prospect is now complete. Twelve diamond drill holes totaling over 2,000 metres will be drilled at Magambazi and 3 holes totaling 700m metres will be drilled at Magambazi North. These drill holes will test the down-dip extensions of known bedrock mineralization that is currently the site of intense surface artisanal mining operations and strong surface geochemical anomalism, including channel rock chip results of 7m @ 5.6g/t Au.

The target gold mineralization at Magambazi is defined by extensive, deep artisanal workings and surface rock chip sampling over 350m strike and is open to the northwest under significant transported cover. At Magambazi North, gold mineralization is defined by a 650m long soil geochemical anomaly (greater than 40ppb Au) with peak soil values of 0.68g/t Au.

The Magambazi prospect lies at the southern end of the 6.5km Handeni Gold Trend.

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 exploration company trading on the TSX Venture Exchange. The Company is actively engaged in developing an exploration portfolio that includes gold and diamond assets in Tanzania and the El Oro gold project in Mexico.

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