Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

May 07, 2008 06:00 ET

Canaco Generates New Drill Targets at Handeni; Semwaliko Drilling Continues

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 7, 2008) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to provide an update on exploration activity at the Company's Handeni gold project located in the United Republic of Tanzania.

Handeni Project - Semwaliko North Prospect

In the northern part of the Handeni Gold Trend, at Semwaliko North, a reverse circulation ("RC") drill program is in progress. A total of 8 holes totaling 1,003 metres of the planned 2,000 metre program have been completed to date. The objective of the drill program is to test the depth and strike extent of bedrock gold mineralization which is currently the subject of active artisanal mining operations over a strike length of 500m and widths up to 40m at surface.

Recent geochemical results have added significantly to the strike length of the surface gold soil anomaly associated with the gold mineralization at Semwaliko North. This new data now indicates a continuous strike length of anomalous gold values of 4.8 kilometres trending in a north to northeasterly direction. This gold trend is associated with alluvial workings at Semwaliko and Majili at southern and northern most projections of the anomaly respectively. The bedrock workings at Semwaliko North are located centrally within the 4.8 km trend.

The best rock chip channel samples previously reported from the project (release December 10, 2007) were 10m @ 2.54g/t Au and 2m @ 14.3 g/t Au.

The RC drilling program remains on schedule with completion anticipated by the end of May, despite the logistical challenges created by an abnormally severe rainy season in the district.

Handeni Project - Magambazi Prospect

Gold mineralization at Magambazi is defined by artisanal workings and surface rock chip sampling over 350m strike and is open to the northwest under significant transported cover. Recent soil results have now clearly defined a NW trending soil anomaly over 1.5km strike incorporating both Magambazi and Magambazi North with new peak soil results of 1218ppb Au at the northern end of the anomaly, well north of any artisanal activity.

Recent soil geochemistry results have also identified a new gold anomaly at Magambazi. The "Magambazi West" gold trend is 600m west of and parallel to the main trend at Magambazi. The anomaly is defined by anomalous soil values over a strike length of 800m with peak values of 450ppb Au in soil.

The planning of a diamond drill program to evaluate the known gold mineralization of the Magambazi prospect is complete and the installation of infrastructure required to support the program is underway. This includes the construction drill roads and installation water wells that will be completed using the RC rig currently employed at Semwaliko once exploration drilling is complete. A total of 12 diamond drill holes totaling over 2000 metres have been recommended at Magambazi and 3 holes totaling 700 metres 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 anomalies. Additional holes are currently being planned into the extensions of the mineralization to the north.

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.
    Nathan Pearson
    Investor Relations
    (604) 488-0822 or 1-866-488-0822
    Email: investors@canaco.ca
    Website: www.canaco.ca