VANCOUVER, British Columbia, July 12, 2006 (PRIMEZONE) -- Douglas Lake Minerals Inc. (OTCBB:DLKM) is pleased to announce the closing of the previously announced acquisition of the 150 square kilometre Morogoro property located in the Kilosa District, in East-Central Tanzania. The closing of the Morogoro Property is an important milestone for the company, as it also finalizes the strategic alliance with Canaco Resources (TSX-V:CAN). and will be incorporated into the mineral potential assessment program currently being conducted and financed by Canaco on behalf of both companies.
The Morogoro property has been the subject of a series of recent surface, bedrock gold discoveries made by local prospectors within the last eighteen months. These discoveries of high-grade, flat lying gold bearing veins occurred over a strike length of 2.2 kilometres.
Gold mineralization at Morogoro occurs in the form of multiple narrow (10cm to 50cm) quartz veinlets and/or silicified zones containing fine visible gold. Initial samples (5) from individual mineralized intervals from the active workings returned values ranging from 7.41 to 177.50 grams gold per tonne, and ore delivered by local miners for processing averaged 25.20 grams gold per tonne. A sample of the tailings produced by the artisanal mining process assayed 3.39 grams per tonne.
Anecdotal evidence from observations made in the field of the artisanal mining operation indicates that approximately 100-150 grams of gold is being recovered from approximately 1 tonne of processed material and an in-situ bulk grade of approximately 3-8 g/t Au.
The geology and mineralization at Morogoro represent an unusual setting for gold. The Morogoro occurrence is described as a quartz-low sulphide-visible gold system possibly related to flat faults or deformation zones and hosted in high-grade metamorphic rocks.
Douglas Lake Minerals is a junior mineral exploration company listed on the NASD OTC Bulletin Board of the United States of America. The company has mineral exploration properties in Canada and Tanzania and continues to investigate several potential exploration projects in Africa.
Canaco Resources is an emerging junior mineral exploration company listed on the TSX Venture Exchange. The Company is engaged in the acquisition and exploration of advanced mineral prospects. Further information on the Company and its projects can be viewed at www.canaco.ca.
No Exchange has neither approved nor disapproved of the information contained herein. This press release may contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and other risk factors beyond its control and actual results may differ materially from the expected results. Douglas Lake does not expect to update forward-looking statements continually as conditions change. Important factors that could cause actual results to differ materially from Douglas Lake's expectations are disclosed in Douglas Lake's quarterly filings with the SEC and other periodic filings.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the release. Canaco Resources relies on litigation protection for "forward-looking" statements.