Canaco Resources Inc.

Canaco Resources Inc.

June 28, 2005 13:11 ET

Canaco Initiates Diamond Drilling at Hajdukovich Gold Prospect in Alaska

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 28, 2005) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce the commencement of the 2005 diamond-drilling program on the Company's Hajdukovich gold prospect in the Fairbanks region of Alaska.

The Phase 1 program will consist of 9 drill holes totaling 1,500 metres planned to test the Sneaker Zone. This initial drilling at "Hajd" will start on the south end of the Sneaker Zone. Drilling will be completed on section in order to assess the geology and alteration system associated with the Sneaker Zone mineralization. Individual holes will target the NE striking gold veins and the contact between granitic and mafic rocks, an area of favorable gold mineralization based on geological models developed from the Pogo Deposit.

The Sneaker Zone is the primary exploration target based on data collected to date and is defined by several occurrences of high-grade gold values in sheeted, northeast-trending, low-sulphide gold-bismuth quartz veins. The gold mineralization at the Sneaker has been identified over a minimum 600-metre-by-900-metre area contained within a five km alteration trend. A total of 1,293 mineralized grab samples have been assayed from the zone with 145 samples returning values in excess of one gram gold per tonne. These samples range up to 184.46 grams per tonne gold and average 10.97 grams per tonne gold.

The Hajdukovich prospect is a newly discovered gold occurrence in Alaska, originally identified and staked by Teck Exploration Ltd. in 2000. Geological reports from Teck Cominco indicate that the Hajdukovich property hosts a number of confirmed high-grade gold systems at surface. The mineralization at "Hajd" has been identified within a geological context capable of hosting a world-class gold deposit and is being tested by diamond drilling for the first time by Canaco's 2005 exploration program.

The complete comprehensive technical report (National Instrument 43-101) has been filed with the exchange in accordance with the Company's re-activation plan as outlined in Stockwatch bulletin dated May 26th, 2005.

Additional information about Canaco and the 2005 exploration programs in Alaska, including technical reports, can be found at the Company's website, or at

Canaco Resources is an emerging junior gold exploration company newly listed on the TSX Venture Exchange. The company is actively engaged in the exploration of advanced gold prospects in Alaska.

Andrew Lee Smith, President and CEO

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The Company relies on litigation protection for "forward-looking" statements.

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.
    Craig Engelsman
    (604) 488-0822 or Toll Free: 1-866-488-0822
    Canaco Resources Inc.
    Nick Watters
    (604) 488-0822 or Toll Free: 1-866-488-0822