Canaco Drills 57.7 Metres at 3.02 Grams Per Tonne Gold and 34.0 Metres at 3.71 Grams Per Tonne Gold From Magambazi and Magambazi Central
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 06/08/11 -- Canaco Resources Inc. (TSX VENTURE: CAN) ('Canaco' or the 'Company') is pleased to announce assay results from new diamond drill holes at Magambazi and Magambazi Central at the Company's Handeni project in Tanzania. These results highlight continuity of the Magambazi Main Lode through the central part of the mineralized zone, and thick intercepts of mineralization up dip of the discovery hole MGZD001.
Highlights include:
-- 34.0 metres at 3.71 grams per tonne gold in hole MGZD153 at Magambazi
Central, including 11.9 metres at 6.99 grams per tonne gold;
-- 57.7 metres at 3.02 grams per tonne gold in hole MGZD152 at Magambazi,
including 26.0 metres at 5.33 grams per tonne gold, and
-- 18.2 metres at 3.24 grams per tonne gold in hole MGZD147, including 5.6
metres at 5.94 grams per tonne gold, highlighting the continuity of the
Magambazi Main Lode from Magambazi to Magambazi North.
Magambazi
Drill holes MGZD144 and MGZD152 were drilled on the same section as the discovery hole, MGZD001, and have confirmed the continuity of grade and structure on that section.
Drill hole MGZD144 intersected the Magambazi Main Lode mineralization 12.0 metres up dip of the intercept in hole MGZD001 and returned a result of 9.8 metres at 3.00 grams per tonne gold. Faulting encountered in this hole resulted in only the upper part of the Magambazi Main Lode being intersected.
Drill hole MGZD152 intersected the Magambazi Main Lode 44.0 metres below surface, 25.0 metres up dip of the discovery intercept in hole MGZD001, and returned a result of 57.7 metres at 3.02 grams per tonne gold, including 26.0 metres at 5.33 grams per tonne gold.
Magambazi Central
The remaining holes disclosed in this release were drilled in the Magambazi Central area and have confirmed the continuity of the Magambazi Main Lode through the central part of the mineralized zone.
Drill hole MGZD151 intersected the up-dip projection of the Magambazi Main Lode.
Drill hole MGZD154, which was drilled closer to the Main Lode Keel position, intersected 9.8 metres at 3.62 grams per tonne gold. Assay results are pending from additional drill holes designed to evaluate the Keel Zone mineralization on this section.
Drill hole MGZD153 targeted high-grade mineralization between hole MGZD076 (18.0 metres at 3.40 grams per tonne gold) and hole MGZD075 (19.0 metres at 1.03 grams per tonne gold - refer to Canaco's press release dated September 17, 2010). The intercept in hole MGZD153 of 34.0 metres at 3.71 grams per tonne gold has effectively doubled the thickness of the mineralization in the Keel Zone position on this section.
Drill hole MGZD147 intersected 19.0 metres at 3.02 grams per tonne gold in the up-dip position from the interpreted Keel Zone on section 60920N near Magambazi North. Assay results are pending from four additional drill holes designed to evaluate the Keel Zone mineralization on this section.
Select Recent Assay Results from Magambazi and Magambazi Central
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From To Interval Au
Hole(1) (m) (m) (m) (g/t)
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MGZD144 78.5 88.3 9.8 3.00
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139.5 157.7 18.2 3.24
MGZD147 --------------------------------------------------------------
including 139.5 145.1 5.6 6.94
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MGZD151 194.7 196.1 1.4 5.70
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72.0 129.7 57.7 3.02
MGZD152 --------------------------------------------------------------
including 72.0 98.0 26.0 5.33
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211.0 245.2 34.2 3.71
MGZD153 --------------------------------------------------------------
including 227.0 238.9 11.9 6.99
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231.8 241.6 9.8 3.62
MGZD154(2) --------------------------------------------------------------
including 238.1 240.9 2.8 7.78
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(1) Mineralized true thicknesses are 60-100% of stated thicknesses. The
calculation of drill intercepts employs a 0.3 gram/tonne cut-off and
no cutting grade has been applied to high gold values.
(2) Partial results only have been received for this hole.
Additional Sampling of Previous Drill Holes
As part of a large-scale project of cutting and sampling the hangingwall and footwall zones of most holes at Magambazi (i.e. outside of the main target areas), there are several new intercepts in various positions throughout the Magambazi mineralized zone that have not previously been reported. Results include:
-- 16.0 metres at 1.47 grams per tonne gold from 55.0 metres, and 3.6
metres at 5.65 grams per tonne from 90.0 metres in hole MGZD008
(Southern Gneiss Lodes);
-- 10.7 metres at 1.45 grams per tonne gold from 216.0 metres in hole
MGZD009 (Western Lodes);
-- 5.0 metres at 1.80 grams per tonne gold from 113.0 metres in hole
MGZD001 (Southern Gneiss Lodes);
-- 7.0 metres at 4.71 grams per tonne gold from 191.0 metres in hole
MGZD041 (Western Lodes);
-- 6.6 metres at 2.32 grams per tonne gold and 6.0 metres at 1.68 grams per
tonne gold from 229.4 metres and 248.0 metres, respectively, in hole
MGZD084 (upper Magambazi Main Lode position), and
-- Numerous narrow, but significant, intercepts from the Southern Gneiss
Lodes, including 5.0 metres at 1.47 grams per tonne gold from 139.0
metres in hole MGZD095, 1.0 metre at 19.8 grams per tonne gold from
142.0 metres in hole MGZD098, and 3.0 metres at 2.83 grams per tonne
gold from 142.0 metres in hole MGZD103.
The results are part of a stream of results which will be flowing over the next few months as the sample backlog is cleared. A total of 47,000 metres of diamond drilling has now been completed on Magambazi Hill from 204 diamond drill holes averaging 230 metres in depth.
Click http://media3.marketwire.com/docs/can68i.pdf for a plan view map and complete list of drill hole intercepts.
Quality Control
The planning, execution and monitoring of Canaco's quality control programs at the Handeni project are under the supervision of Jeff Heidema, P.Geo., Canaco's Vice President Exploration, and Dr. David Groves, Canaco's Director of Project Development. Mr. Heidema and Dr. Groves are Qualified Persons as defined by National Instrument 43-101. Drill samples are prepared and analyzed at the SGS Geochemical Laboratory in Mwanza, Tanzania. Samples are processed by Fire Assay with A.A. finish under the SGS FAA505 protocol. 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. Mineralized true thicknesses are 60-100% of stated thicknesses throughout this release.
Additional information, press releases and public documents about Canaco, including a complete list of drill hole intercepts and drill collar maps, 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 Africa. Built on a foundation of experienced management and focused on rapidly advancing exploration projects in Tanzania and Ethiopia, 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.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., President, CEO and Director
Cautionary Statement Regarding Forward-Looking Information
This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as 'anticipate', 'believe', 'plan', 'expect', 'intend', 'estimate', 'forecast', 'project', 'budget', 'schedule', 'may', 'will', 'could', 'might', 'should' or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks associated with mineral exploration and development; metal and mineral prices; availability of capital; accuracy of the Company's projections and estimates; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; political or economic developments; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the price of gold; the demand for gold; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; and the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking contained herein, except in accordance with applicable securities laws.
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.
Contacts:
Canaco Resources Inc.
Meghan Brown
Director Investor Relations
604-488-2557 or Toll Free: 1-866-488-0822
604-899-1240 (FAX)
investors@canaco.ca
www.canaco.ca