Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

October 11, 2006 18:56 ET

Canaco Resources Initiates Diamond Drilling at Morogoro

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2006) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce the commencement of Phase 1 of the Diamond Drilling Program at the Company's 150 square kilometre Morogoro property located in the Kilosa District of east-central Tanzania, currently under option from Douglas Lake Minerals.

The Phase I program will consist of approximately 25 holes of NQ diamond drilling for a total of 2,500 metres and is being initiated with the objective to establish a geological context for the unusual setting of gold mineralization in high-grade metamorphic rocks. Drill targets have been generated through geological mapping and generally consist of areas where artisanal workings have exposed bedrock gold mineralization in sheared, shallow-dipping sections of garnetiferrous, quartzo-feldspathic and biotitic gneisses. Gold mineralization within the exposed geological units occurs as multiple narrow (10cm to 50cm) quartz veinlets and/or silicified zones containing, high-grades of fine visible gold. Geological mapping indicates that the mineralization occurs conformably within foliation parallel horizons that have been the subject of preferential structural preparation.

The results of Phase 1 drilling will give an indication as to the depth, extent and continuity of gold mineralization at a few localities within the 14 square kilometre area in the east-central portion of the Morogoro property from which bedrock gold mineralization and artisanal mining activity has been documented. As, such, this information will compliment the ongoing regional program of prospecting and geological surveying as Canaco's exploration personnel prepare the property for advanced exploration programs. The diamond drilling program at Morogoro will be completed prior to the end of the fourth quarter of 2006.

Additional information on Canaco Resources, the Morogoro gold prospect, technical reports and other public documents are available at www.sedar.com or, at the Company's website, www.canaco.ca.

The planning and execution of the exploration and quality control programs at the Morogoro project are under the direction of Andrew Lee Smith, P.Geo. Canaco's Chairman and CEO. Mr. Smith is a qualified person as defined by National Instrument 43-101.

Canaco Resources is an emerging junior gold exploration company trading on the TSX Venture Exchange. The Company's Tanzania exploration portfolio is being developed through a Strategic Alliance with Douglas Lake Minerals Ltd. (OTCBB:DLKM).

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
    or
    Canaco Resources Inc.
    Nick Watters
    Investor Relations
    (604) 488-0822 or 1-866-488-0822
    Email: investor@canaco.ca
    Website: www.canaco.ca