VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 9, 2012) - Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco" or the "Company") is pleased to announce the remaining outstanding delineation drill results for the purposes of calculating an initial mineral resource estimate at the Magambazi gold project in Tanzania. These results include 117 new holes and updates to three previously reported holes. All drill results related to the upcoming initial mineral resource estimate have now been released. The initial mineral resource estimate in on track for completion by May 15, 2012, and will include approximately 400 holes totalling 100,000 metres.
Highlights of the current results include:
- Infill intersections to the central Western Lodes;
- Infill drilling on shallow intersections of Magambazi Main; and
- Confirmation of up-dip continuity on the western flank of the Magambazi North near-surface mineralization.
Highlights include:
| Hole (1)(2) |
From (m) |
To (m) |
Interval (m) |
Au (g/t) |
Lode(s) | |
| MGZD174 | 72.4 | 78.0 | 5.6 | 3.67 | Magambazi Main (lower) | |
| and | 83.6 | 94.1 | 10.5 | 7.83 | ||
| MGZD201 | 262.5 | 266.0 | 3.5 | 7.30 | Western Lodes | |
| and | 278.6 | 282.8 | 4.2 | 6.27 | ||
| MGZD264 | 258.0 | 263.6 | 5.6 | 3.06 | Western Lodes | |
| MGZD340 | 288.0 | 294.0 | 6.0 | 3.13 | Western Lodes | |
| MGZD395 | 257.0 | 265.3 | 8.3 | 2.17 | Western Lodes (east extension) | |
| MGZD413 | 214.0 | 218.9 | 4.9 | 5.13 | Western Lode (upper) | |
| MGZD432 | 18.7 | 22.2 | 3.5 | 22.05 | Magambazi North |
| (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) | Not all drill holes identified in this release have had a full sample submission completed as planned. Additional results will be released and posted as received. |
Click here: http://media3.marketwire.com/docs/can509_Map-DHI.pdf for a plan view map and complete list of drill hole intercepts.
Intersections noted have provided infill and extension information for purposes of definition drilling. Diamond drilling has closed off the immediate lateral northern, western, and southern extensions of significant mineralization, with as-yet undrilled extension-potential being identified at depth to the west. The majority of the drill results reported here relate to the completion of lower priority assays related to the upcoming mineral resource estimate. The upcoming mineral resource estimate will be based on assay results and geologic information obtained from approximately 400 holes totalling 100,000 metres of drilling at Magambazi.
Remaining core from recent regional drilling continues to be processed. Geological follow-up studies have been initiated and continued data compilation will assist in establishing additional targets.
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, Mr. Heidema is a Qualified Person as defined by National Instrument 43-101. Diamond drill samples are prepared and analyzed at the SGS Geochemical Laboratory in Mwanza, Tanzania. RC drill samples are prepared at the ALS Chemex Laboratories in Mwanza, Tanzania and analyzed at their facilities in Johannesburg, South Africa. Samples are processed by Fire Assay with A.A. finish under the SGS FAA505 and ALS Au-AA24 protocols. Additionally, core samples analyses are conducted at Acme Labs in Vancouver, Canada, and undergo Fire Assay Fusion Gold by ICP-ES and lead collection fire assay-gravimetric finish. 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 core, rejects, and pulps are also used to monitor laboratory performance and characterize mineralization. Mineralized true thicknesses are 60-100% of stated thicknesses throughout this release.
Additional information including press releases and public documents about Canaco 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 projects in Africa. Built on a foundation of experienced management, the Company is rapidly advancing the Handeni project in Tanzania and 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 information 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.
Contact Information:
Meghan Brown
Director Investor Relations
604-488-2557 or 1-866-488-0822
investors@canaco.ca
www.canaco.ca