Canaco Resources Inc.

Canaco Resources Inc.

December 12, 2007 06:00 ET

Canaco's Handeni Project Exploration Identifies 6.2 Kilometre Gold Trend

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 12, 2007) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce that regional exploration has documented intensive artisanal mining present along the WNW trend over a known strike length of 6.25 km at the Company's Handeni Project located in the Handeni District, 160 kilometres northeast of the city of Dodoma in the Tanga Region of Tanzania.

Gold mineralization at the Handeni Project has been documented from four separate areas over 6.25km of strike, including Magambazi, North Magambazi, Semwaliko and Semwaliko North. All workings are located within a regional WNW structural trend interpreted from a regional aeromagnetic survey.

Systematic rock chip channel sampling at two of these artisanal mining areas, Magambazi and Semwaliko North respectively, has defined ore-type grades and widths, including;

- 7m @ 5.6g/t Au, including 3m @ 10.15g/t Au in a 10m wide working at Magambazi (the Big Pit);

- 2m @ 3.97g/t Au and 1.2m @ 7.05g/t Au in a 2m wide open stope 80m from the Big Pit at Magambazi. A grab sample of ore from this area yielded 23.5g/t Au, and;

- 10m @ 2.54g/t Au (0.4g/t Au cutoff) and 2m @ 14.3g/t Au from shallow workings at Semwaliko North (intensive workings over 450m strike almost 7km NW of Magambazi).

Soil sampling up to 800m north of the Magambazi workings was recently completed to locate the source of two alluvial trends without a defined bedrock source. Strongly anomalous results were returned and a significant exploration target has now been defined. Soil results included 2 samples greater than 0.5g/t Au and 19 samples greater than 100ppb Au.

The exploration program is ongoing and targets and exploration infrastructure are being developed to support a diamond drilling program that will investigate the depth extensions of surface bedrock gold mineralization that are the sites of active artisanal mining operations.

"Canaco finds these initial results encouraging and believes that they are an expression of an important new gold exploration environment that is emerging in Tanzania," said Andrew Lee Smith, Chairman and CEO of Canaco. "The observation of the district scale gold mineralization supports the results of recent research that suggests the significant potential for gold existing at Handeni and is related to metamorphosed Archaean gold mineralization originally formed along the extension of the same Archaean terrane that hosts the Geita and Bulyanhulu deposits."

Canaco is also pleased to announce that Iain Groves has joined the company as Senior Exploration geologist and will join Canaco's Tanzanian technical team in advancing the Company's exploration assets. Mr. Groves has 15 years of gold and base-metal exploration experience with a variety of companies in diverse terranes such as the goldfields of the Yilgarn, Ballarat, Tanami and Tanzania, the Flinders Ranges of SA and Broken Hill in NSW. He has previously been part of several successful exploration groups at Fortnum (Au) and Reliance (Zn), and has been involved in target generation and generating an improved understanding at the giant Broken Hill Pb-Zn-Ag Mine.

The planning, execution and quality control programs at the Handeni Project are under the supervision of Andrew Lee Smith, P.Geo. 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.

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 exploration company trading on the TSX Venture Exchange. The Company is actively engaged in developing an exploration portfolio that includes gold and diamond assets in Tanzania and the El Oro gold project in Mexico.

The Company relies on litigation protection for "forward-looking" statements. 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 obligations of the Company under the Option Agreement and 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.

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