Nov 3 PR$0Canaco Resources Inc (C:CAN) $0$0Tuesday November 03 2009 - News Release$0$0$0$0Canaco Resources Inc. has released assay results fromsurface channel sampling at Magambazi North and is pursuing an expandedexploration effort that includes additional diamond drilling of the Magambazigold prospect at the company's Handeni gold project, located in the Handeniregion of the United Republic of Tanzania.$0$0$0$0At Magambazi North, results from channel sampling of anoccurrence of exposed bedrock mineralization have returned grades of 2.99 gramsgold per tonne over 9 meters (including 4.92 grams gold per tonne over 5meters). The sampled mineralization at Magambazi North is similar in style andgrade to that observed from the "Big Pit" channel sampling atMagambazi, 700 meters to the southeast, where recent drill results haveconfirmed the presence of a significant gold system consisting of a broad,alteration zone with sulphide mineralization and frequent occurrences of tracevisible gold and containing two distinct intervals of moderate to high-gradegold mineralization known as the "upper" and "lower" lodes(see press release dated October 22, 2009).$0$0$0$0The Magambazi North prospect was originally defined bygeochemical surveying designed to identify the source of large alluvialdeposits found in river beds draining the immediate area. The results of thesoil sampling program returned 33 samples greater than 100ppb Au with a peakvalue of 1218ppb Au (1.22g/t Au). The Magambazi North anomaly is part of a 1.4kilometre long trend of gold mineralization defined by bedrock goldoccurrences, artisanal mine workings and soil geochemical anomalies. This 1.4kilometre trend includes the Magambazi, Magambazi Central and Magambazi Northtargets (collectively known as the Magambazi prospects) and representssouthernmost segment of the 11 kilometre Handeni gold Trend contained withinCanaco's Handeni property.$0$0$0$0Since the press release dated October 22, 2009 thecompany has continued the Phase 1 diamond drilling program, completing anadditional 1113 metres in 5 holes (MGZD008, 9, 10, 11 and 12). This brings thetotal metres drilled to date in Phase 1 to 3,202 metres. Recent drillingcontinues to test the mineralized zone discovered in MGZD001 along strike anddown dip, stepping out both south and north of the discovery section.Additional information on this latest drilling will be released once assayinformation becomes available.$0$0$0$0Encouraged by recent drill results at Magambazi, Canaco'sBoard has approved an expanded exploration effort at the Handeni project tocontinue to test the extents mineralization at the Magambazi prospects,identify additional drill targets along the Handeni gold Trend and complete adetailed assessment of the controls on mineralization and the structuralgeology. The expanded work program will include:$0$0$0$0- 2,000 metres of additional diamond drilling atMagambazi, Magambazi North and Magambazi Central$0$0$0$0- Detailed airborne Mag/EM survey$0$0$0$0- Soil sampling, regional mapping and trenching$0$0$0$0- Rotary Air Blast ("RAB") drilling along theHandeni gold Trend - Majili Bomba and Magambazi West$0$0$0$0- Geotechnical compilation, resource assessment andpetrographic and metallurgical analysis$0$0$0$0The company anticipates being actively engaged inexploration at Handeni for the remainder of 2009 and throughout 2010.$0$0$0$0The planning, execution and monitoring of quality controlprograms at the Handeni project are under the supervision of Andrew Lee Smith,P.Geo, Canaco's CEO and Dr. David Groves, Canaco's Director of projectDevelopment, Tanzania. Mr. Smith and Dr. Groves are qualified persons asdefined by National Instrument 43-101. Canaco utilizes an industry standardQA/QC protocol with respect to sampling procedures. Blanks, and certifiedreference standards are inserted into the sample stream to monitor laboratoryperformance and duplicates of pulps and bulk rejects are also used to monitorlaboratory performance.$0$0$0$0Additional information and public documents about CanacoResources, including images of 2009 exploration activities, can be viewed atthe company's website
www.canaco.ca or at
www.sedar.com. Canaco Resources is listed onthe TSX Venture Exchange and is engaged in the exploration and development ofTanzanian gold prospects.$0