VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 28, 2011) - Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco" or the "Company") is pleased to report reverse circulation (RC) drill results at the Company's Handeni gold project in Tanzania. Drilling at the Kwadijava area (formerly known as Semwaliko North), 6.25 kilometres NW of Magambazi, has intersected near-surface gold mineralization over a 240 metre strike length, including:
- 37 metres at 1.02 grams per tonne gold (hole MGZC054, from 5 metres), including 5 metres at 3.05 grams per tonne gold;
- 25 metres at 1.21 grams per tonne gold (hole MGZD049, from 9 metres) including 6 metres at 2.12 grams per tonne gold (from 28 metres), and
- 11 metres at 1.96 grams per tonne gold (hole MGZD050, from 6 metres), including 3 metres at 5.73 grams per tonne gold
To view the table accompanying this press release, please visit the following link: http://media3.marketwire.com/docs/685146.pdf
A full table of drill results and drill hole location map are available on the Canaco website at www.canaco.ca.
Gold mineralization at Kwadijava was intersected on six sections of drilling at 40 metre centres to a maximum depth of 45 metres below surface, and is open for several hundred metres to the north and south. Drilling north and south of the zone of gold mineralization will be conducted in the near future. Drilling was targeted on a near-surface magnetic anomaly defined during a detailed aeromagnetic survey conducted late in 2010, in the vicinity of significant artisanal bedrock workings (up to 450 metres long, 30 metres wide and several metres deep), and strong soil gold anomalism. Several similar magnetic anomalies are present elsewhere along the Majiri-Kwadijava Trend (MK Trend).
Canaco President and CEO Andrew Lee Smith said: "These results give us confidence that the robust mineralization at Magambazi is also present at Kwadijava, and confirm the regional nature of the mineralization at the Handeni project. While additional drilling is required, these results substantially enhance the potential for the identification of additional near surface mineralization on the property."
The gold mineralization is hosted mainly within an amphibolite unit at the intersection of a steeply dipping NNE (190 degree)-trending shear/fault structure: However, there are several intercepts present in the footwall gneiss indicating persistence of the veins and mineralizing structures into footwall stratigraphy. The mineralization is characterized by quartz-veined silica-garnet altered amphibolite with pyrite, arsenopyrite and lesser chalcopyrite and graphite. The intersection of the fault and stratigraphy create a shallowly plunging body of gold mineralization. The mineralization is very similar in character to the Magambazi North area at Magambazi Hill, approximately 6.25 kilometres SSE.
The successful RC drilling campaign at Kwadijava has highlighted potential for satellite bodies of gold mineralization in the area surrounding Magambazi and has provided impetus for Canaco to continue the regional exploration campaign of drilling priority targets.
Exploration History
Gold mineralization at Kwadijava was discovered by artisanal miners approximately five years ago. Rock chip sampling of the workings in 2007 produced a peak value of 4.18 grams per tonne gold with four other assays greater than 0.84 grams per tonne gold. Channel rock chip sampling in 2007 across the vein swarms in the shallow artisanal diggings produced peak results of 10 metres at 2.54 grams per tonne gold and two metres at 14.3 grams per tonne gold (refer to Canaco's press release dated December 12, 2007). Soil sampling at 200-by 40-metre spacing yielded peak values of 1,849 and 318 parts per billion gold. RC drilling in 2008 intersected 12 metres at 1.04 grams per tonne gold from 25 metres (refer to Canaco's press release dated August 28, 2008), but much of the RC drilling was targeting a deep extension to the surface mineralization and failed to intersect the actual target zone. Ten drill holes for 1,027 metres of shallow RC drilling were completed. Drill hole MGZC007 was abandoned in 2.85 grams per tonne gold in a vertical fault zone and remained open at depth. The discovery of Magambazi delayed work at the prospect (refer to Canaco's press release dated September 28, 2009). Detailed low-level airborne magnetics, detailed mapping, and IP surveys across the project area have provided new impetus to target the gently-plunging shoot-style mineralization with RC drilling in early 2011.
Quality Control
The planning, execution and monitoring of Canaco's quality control programs at the Handeni project are under the supervision of Jeff Heidema, P.Geo, Canaco's VP Exploration, and Dr. David Groves, Canaco's Director of Project Development. Mr. Heidema and Dr. Groves are Qualified Persons as defined by National Instrument 43-101. RC drill samples are prepared and analyzed at the SGS Geochemical Laboratory in Mwanza, Tanzania. Samples are processed by Fire Assay with A.A. finish under the SGS FAA505 protocol. Canaco utilizes an industry standard QA/QC protocol with respect to sampling procedures. Blanks and certified reference standards are inserted into the sample stream to monitor laboratory performance, and duplicates of pulps and bulk rejects are also used to monitor laboratory performance.
Additional information, press releases and public documents about Canaco, including a complete list of drill hole intercepts and drill collar maps, can be viewed at the Company's website www.canaco.ca or at www.sedar.com.
About Canaco
Canaco is a Vancouver-based mineral exploration company focused on advanced exploration in Africa. Built on a foundation of experienced management and focused on rapidly advancing exploration projects in Tanzania and Ethiopia, Canaco is well positioned to build shareholder value through discovery and resource development.
Canaco's shares trade on the TSX Venture Exchange under the symbol CAN.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo, President, CEO and Director
Cautionary Statement Regarding Forward-Looking Information
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule", "may", "will", "could", "might", "should" or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks associated with mineral exploration and development; metal and mineral prices; availability of capital; accuracy of the Company's projections and estimates; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; political or economic developments; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the price of gold; the demand for gold; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; and the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking contained herein, except in accordance with applicable securities laws.
Contact Information: Canaco Resources Inc.
Meghan Brown
Director Investor Relations
604-488-0822 or 1-866-488-0822
investors@canaco.ca
www.canaco.ca