Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

November 23, 2006 14:02 ET

Media Release: Canaco Resources Updates Morogoro Drill Program

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 23, 2006) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce the progress of Phase 1 diamond drilling 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.

To date a total of 16 drill holes totaling 1,700 metres have been completed on four different target areas. A total of 800 metres remain to be completed. The Phase one program has been designed to establish a geological context for the unusual setting of gold mineralization in high-grade metamorphic rocks described from the Morogoro property. Six target areas have been designated for investigation with the 24 square kilometre area outlined by artisanal mining activity to date; the Central (CZ), East (EZ), West (WZ) and North (NZ) target areas. Drill core is being sampled at the Morogoro camp and shipped to SGS Laboratories in Mwanza for preparation and analysis.

Chip sampling of bedrock trench walls created through the artisanal workings is ongoing and is being completed with the objective of indicating the distribution of gold throughout near-surface section, and the presence of gold in different lithologies.

A total of 54 samples have been assayed from this work from 16 different trench chip samples. The chip samples were collected by hand on vertical walls beginning at surface and sampling the entire vertical section of the exposed bedrock. Wherever possible samples were collected from discrete lithological units using maximum sample widths of one metre. The cumulative length of the geology sampled at any one location ranged from 1.1 to 5.1 metres in vertical section.

Six of the 54 samples consisted of vein material from narrow structures which varied in width from 2cm to 40cm and returned values ranging from trace to 213.2 grams gold per tonne. This latter high-grade value having been returned from workings described for the first time from the newly acquired Morogoro North property. All of the remaining samples were comprised of variations of the bulk host lithology of garnetiferrous, biotitic gneiss. Seven out of these 48 samples returned gold values greater than 0.5 grams gold per tonne and ranged from 0.62 to 20.71 grams gold per tonne. These elevated values are associated with shearing, alteration and the presence of quartz.

Of the 16 chip samples taken at surface, four have returned average values greater than 1 gram gold per tonne over the entire sampled width with values ranging from 1.30 gAu/t over 1.2 meters to 9.56 gAu/t over 3.0 meters.

"Canaco is pleased by the progress of exploration at Morogoro to date," said Andrew Lee Smith, Canaco's Chairman and CEO. "While the current data is not conclusive, the presence of multi-gram gold values within host rocks, in addition to the multi-ounce gold grades from vein structures is an encouraging development and confirms that the potential for the discovery of near-surface bulk mineable gold deposit exists at Morogoro."

Detailed information on the chip sampling results summarized in this press release, technical reports on the Morogoro gold prospect, and other public documents are available at www.sedar.com or, from 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: investors@canaco.ca
    Website: www.canaco.ca