Canaco Resources Inc.

Canaco Resources Inc.

March 15, 2007 06:00 ET

Canaco Options the New Kilindi Gold Prospect From Midlands Minerals Corporation

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 15, 2007) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce the Company has entered into an Option Agreement with Toronto based Midlands Minerals Corporation ("Midlands") to explore Midlands' New Kilindi gold property in Tanzania. The New Kilindi gold property is located in the Hendini District, 160 kilometres northwest of the city of Morogoro and west of the city of Dar es Salaam.

The New Kilindi property is a 2,700 square kilometre reconnaissance license acquired by Midlands on the basis of recent artisanal discoveries in the area. The New Kilindi and other properties included in the Douglas Lake/Canaco Strategic Alliance, include prospecting licenses with active artisanal mining operations located along a newly discovered gold belt in east-central Tanzania. Recent gold discoveries made by local prospectors have occurred on a district scale and have defined an extent of mineralization with a strike-length of over 100 kilometres. The geology and location of the known gold discoveries, which occur in both alluvial and in bedrock settings, suggests the mineralization is controlled by regional structures.

"Canaco is pleased with this agreement and our association with Midlands. Canaco's management believes that the New Kilindi property compliments Canaco's growing portfolio of exploration assets and establishes Canaco with a regional scale land position in a new and emerging gold exploration camp in east-central Tanzania," said Andrew Lee Smith, Chairman and CEO of Canaco. "We agree with the comments of Kim Harris, President and CEO of Midlands that this agreement is timely and strategic for both companies."

Under the terms of the agreement, Canaco undertakes to spend US $2.5 million in work programs including a minimum of 5,000 metres of diamond drilling over 60 months to earn a 60% interest in the New Kilindi project. The terms of the option include a cash payment of US $100,000 over two years and the issuance of 200,000 common shares of Canaco to Midlands. Canaco has an option to acquire an additional 15% interest by bringing the New Kilindi project to a bankable feasibility study stage.

Additional information on Canaco, including technical reports and other public documents are available on SEDAR at or from the company's website at

Canaco Resources is an emerging junior gold exploration company trading on the TSX Venture Exchange. The Company is actively engaged in the acquisition of gold exploration and development projects.

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.
    Andrew Lee Smith
    Chairman and CEO
    (604) 488-0822 or 1-866-488-0822
    Canaco Resources Inc.
    Nick Watters
    Investor Relations
    (604) 488-0822 or 1-866-488-0822