Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

April 06, 2011 06:04 ET

Canaco Increases Land Position in Tanzania by 1,200 Square Kilometres

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 6, 2011) - Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco" or "the Company") is pleased to announce it has agreed to acquire nine additional prospecting licenses in Tanzania totalling approximately 1,200 square kilometres. The properties are strategically located in the Handeni region of eastern Tanzania, location of the Company's Handeni project. Canaco's land holdings in the Handeni region now total approximately 1,300 square kilometres.

President and CEO Andrew Lee Smith said: "These acquisitions build on our strategy to establish and maintain a dominant land position in the Handeni region, which we believe hosts potential to become an important new gold district. The new properties are all located in areas with known prospective geology and the presence of artisanal gold workings."

Consideration for these properties, which were acquired through Canaco's Tanzanian subsidiary, consisted of cash payments and included the issuance of 70,000 common shares. The acquisitions are subject to regulatory approval, and on issuance, the shares will have a four-month hold period.

Canaco discovered the Handeni project in 2009 and since that time has reported results from 125 holes. The Company currently has five rigs drilling on the project and plans to publish an initial resource estimate by the end of 2011.

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.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information