Canaco who has an earn in agreement with Douglas Lake at Magembe just found a large swath of territory with diamonds. I'm not a diamond guru but being alluvial I would think is a plus and that they found them just outside one of the world's most prolific diamond mines. For grins and giggles, I picked up some shares of Canaco this morning. This find has to be worth more than a market cap of under $2 million. Hopefully it will add some buy pressure on Douglas. I would like RicherNow's take on this information if you have the time. Thanks.
***************************************************************************************************************************
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 4, 2009) - Canaco Resources (TSX VENTURE:CAN - News) is pleased to announce that preliminary gemological results have confirmed the presence of diamondiferous alluvial gravels from the Company's Magembe diamond property in the Shinyanga District of northwestern Tanzania.
The sampling of Magembe alluvial gravels was conducted as part of Phase I exploration, the objective of which was to confirm and evaluate indicated diamond potential from both alluvial and kimberlitic sources.
To date, 60 samples weighing a total of 12.4 tonnes have been processed from a total 45.9 tonnes of alluvial gravels from 220 samples collected in 2008. A total of 41 diamonds and diamond cleavages have been recovered from 12 of the 60 samples, with the largest stone weighing 0.22 carats. Importantly, the positive results are evenly spread over the sample region confirming the presence of diamondiferous gravels within the 900 metres by 100 metres area from where the processed samples were collected.
Of note is the fact that the recovered diamonds represent two distinct populations with respect to degradation, indicating two different sources; one proximal and one distal. The provenance of the recovered diamonds cannot be identified with certainty; however, the alluvial gravels of the Magembe property lie 5km south east of the Williamson (Mwadui) diamond pipe. Other diamondiferous pipes are known from the Shinyanga region based on government research, including four interpreted kimberlite targets on the northern portion of the Magembe property.
The Magembe property is part of a two-kilometre buffer zone created to surround the Williamson (Mwadui) mine as part of the original mine development in the 1940s and 50s. This buffer zone was formed with the intention of ensuring that the mining operations could proceed in a safe and orderly manner through the prohibition of the mining of surficial diamond deposits in the area immediately adjacent to the mining operation.
The Williamson mine is owned 75 per cent by De Beers and 25 per cent by the government of Tanzania and is currently the subject of a negotiation to purchase the mine by South African based Petra Diamonds. The mine has a production history that spans six decades. The Williamson pipe covers 360 acres and, at the time of its discovery in 1940, was considered the largest economically exploitable pipe in the world. The mine at Williamson is notable as the original source of pink diamonds and has produced notable stones including a 54-carat flawless pink diamond and a 388-carat diamond found in 1990.
The 60 samples were processed to heavy mineral concentrates by Seamic laboratories (an affiliate lab of SGS) in Dar es Salaam, Tanzania. The heavy mineral concentrates were processed using gemological methodologies for diamond recovery and identification in the laboratory facility of True North Gems in Vancouver.
The processing of the remaining 160 samples is ongoing and results will be reported as they become available.
The planning, execution and quality control programs at the Magembe diamond project are under the supervision of Andrew Lee Smith, P. Geo. Mr. Smith is a qualified person as defined by National Instrument 43-101. The gemological assessment of the heavy mineral concentrates in Vancouver was completed by John Mattinson, B.Sc., G.G.
In other developments, the Handeni project has been placed on temporary care and maintenance as the rainy season has begun in central Tanzania. Ground work on the project was completed in December and the Phase II drill program has been planned and the necessary infrastructure is in place. The company is currently preparing to marshal the capital resources and logistical support required to initiate the Magambazi drilling at the earliest possible opportunity.
Canaco's exploration at Magembe is being conducted under the terms of an option agreement with Douglas Lake Minerals whereby Canaco can earn 75 per cent interest in the property through cash and share payments and spending $2.5-million (U.S.) in exploration expenditures over four years (see news in Stockwatch on March 9, 2007).
Additional information on Canaco, including technical reports and other public documents are available on SEDAR at www.sedar.com or from the Company's website at www.canaco.ca.
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.