Canaco Resources Inc.

Canaco Resources Inc.

September 08, 2009 06:00 ET

Canaco Commences Drilling at Magambazi Gold Prospect, Handeni, Tanzania

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 8, 2009) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce the commencement of a diamond drilling exploration campaign to test several well defined gold targets at the Company's Handeni Project located in the United Republic of Tanzania.

The diamond drill program is focused on the Magambazi and Magambazi North Prospects which are defined by a 1.3km long soil gold anomaly, intensive, deep artisinal mining and ore-grade rock chip results from channel sampling, including seven metres of 5.6 grams per tonne gold (7m @ 5.6 g/t Au). Initially, eight to twelve diamond drill holes totaling approximately 2,000 metres will test the depth extension and lateral continuity of the target mineralized zone.

A water supply for the diamond drilling has now been established with the successful completion of several water bores drilled in the last few weeks using a reverse circulation ("RC") drilling rig. Diamond drilling is expected to continue for several weeks with results for the first few holes anticipated by late September to early October.

The Magambazi and Magambazi North Prospects occur in the southeast part of a 10 kilometre gold anomalous zone known as the Handeni gold trend. The trend is defined by gold anomalous soil samples and numerous artisinal alluvial and hard-rock workings including, from south to north: Magambazi, Magambazi North, Semwaliko South, Semwaliko and Majiri Bomba. Magambazi includes significant open pit workings and shafts up to 90m deep.

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.

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.
    Dr. Jingbin Wang
    604-488-0822 or 1-866-488-0822
    Canaco Resources Inc.
    Nick Watters
    Investor Relations
    604-488-0822 or 1-866-488-0822