Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

December 09, 2010 06:00 ET

Canaco Intersects 13.4 Metres at 13.5 Grams Gold Per Tonne at Magambazi

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 9, 2010) - Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco" or "the Company") is pleased to announce additional new drill results from the Company's Magambazi gold discovery located in the Handeni region of the United Republic of Tanzania.

Ongoing definition drilling continues to focus on delineating the Magambazi Main Lode, down dip extensions to mineralization and possible extensions of mineralization to the south. The highlights from new results include:

  • 13.4 metres at 13.54 g Au/t, including 6.0 metres at 29.40 g Au/t (MGZD084 - section 60,600N)

These latest results continue to indicate excellent continuity of grade and structure within the Magambazi mineralized zone. Results from drilling continue to encounter grades in excess of 1.0 g Au/t in 90% of the drill holes completed to date. The high-grade intercept in MGZ084 is attributed to the high-grade core zone that continues to occupy a specific and predictable position within the Magambazi mineralized zone. 

Recent Drill Results from Magambazi
Drill Hole(3) Local
N
Local
E
Prospect Local
Azimuth/
(Dip)
degrees)
  From
(metres)
To
(metres)
Interval
(1)
(metres)
Au
Grade
(2)
(grams/
tonne)
MGZD084 60,600 10,127 Magambazi 090/-65   269.0 282.4 13.4 13.54
Inc. 269.0 275.0 6.0 29.40
MGZD087 60,400 10,205 Magambazi 96.5/-58.5   197.0 226.0 29.0 1.18
Inc. 197.0 212.0 15 2.06
MGZD088 60,600 10,125 Magambazi 092/-70.5   222.0 237.0 15.0 4.19
Inc. 222.0 225.8 3.8 7.87
And 264.0 275.2 11.2 4.03
Inc. 208.0 211.5 3.5 6.97
(1) Drill intercept lengths are down-hole lengths reflecting apparent widths of mineralization with true widths ranging between 60% - 80% of the reported down-hole lengths.
(2) The calculation of drill intercept employs a 0.3 gAu/t cut-off and no cutting grade has been applied to high gold values.
(3) All intercepts fall outside the boundaries of the recently revoked ML 413/2010 and within Canaco's Magambazi claim block. A location map can be found on the Company's website, www.canaco.ca

In addition to the ongoing definition drilling, a regional program including reverse circulation drilling of exploration targets outside the Magambazi mineralized trend is underway. Additional information on the regional exploration program will be disclosed in the coming days.

The Magambazi and Magambazi North prospects are part of a 1.4 kilometre long trend of gold mineralization now defined by high-grade drill results, artisanal mine workings and soil geochemical anomalies. This 1.4 kilometre trend represents a segment of a 17 kilometre trend of gold mineralization known as the Handeni Gold Trend contained within the Company's Handeni Gold Project.

The planning, execution and monitoring of quality control programs at the Handeni project are under the supervision of Andrew Lee Smith, P.Geo, Canaco's CEO 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. 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 and public documents about Canaco, including technical memoranda, for a complete list of drill hole intercepts, drill collar maps, and images of 2009 exploration activities, 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 the Handeni region of east Tanzania. The Handeni region consists of numerous gold discoveries along a strike length of over 100 kilometres, suggesting evidence of a highly prospective emerging gold district. Canaco has established a large land position covering 200 square kilometres in this highly prospective district. The Company's activities are highlighted by the Magambazi prospect, where the Company has drilled over 90 holes and is host to an active artisanal gold mining operation.

Built on a foundation of experienced management and focused on rapidly advancing exploration projects in Tanzania and throughout Africa, 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.

Andrew Lee Smith, P.Geo, CEO

Canaco Resources Inc. 

The Company relies on litigation protection for "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 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.

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.

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