VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 5, 2011) -Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco" or the "Company") is pleased to announce new assay results from diamond drilling at the Magambazi gold discovery. Drilling continues to infill and extend identified mineralized zones. A potential new zone of mineralization has been identified in the upper gneiss at the north end of Magambazi South (Central Gneiss Lode), and additional assays will be prioritized for this location.
New results from the Cave Lode, east of Magambazi Main Lode in hole MGZD307, intersected 13 metres grading 4.78 grams per tonne gold starting 30 metres below surface. A new infill intercept at Magambazi North in hole MGZD337, which returned 23.8 metres grading 2.8 grams per tonne, is a strong indication of continuity for this area of mineralization.
Results have been received for 20 diamond drill holes. Highlights include:
| Hole(1)(2) |
|
From
(m) |
To
(m) |
Interval
(m) |
Au
(g/t) |
Lode(s) |
| MGZD224 |
|
141.0 |
149.0 |
8.0 |
4.05 |
Central Gneiss Lode |
| MGZD295 |
|
211.0 |
216.0 |
5.0 |
12.67 |
Central Contact Lode |
| 262.0 |
278.4 |
16.4 |
1.19 |
Western Lodes |
| MGZD301 |
|
276.0 |
282.0 |
6.0 |
5.26 |
Western Lodes |
| MGZD303 |
|
205.0 |
226.0 |
21.0 |
2.01 |
Central Contact Lode |
| 255.0 |
266.0 |
11.0 |
2.74 |
Western Lodes (upper) |
| 297.0 |
305.3 |
8.3 |
8.84 |
Western Lodes (lower) |
| MGZD307 |
|
50.0 |
63.0 |
13.0 |
4.78 |
Cave Lode |
|
including |
51.0 |
55.4 |
4.4 |
12.71 |
| MGZD330 |
|
121.0 |
128.0 |
7.0 |
2.80 |
Upper Western Lodes |
|
|
190.7 |
195.6 |
4.9 |
2.98 |
Western Lodes |
|
|
251.0 |
258.0 |
7.0 |
5.76 |
Lower Western Lodes |
|
including |
252.4 |
254.5 |
2.1 |
18.18 |
| MGZD337 |
|
90.4 |
114.2 |
23.8 |
2.80 |
Magambazi Main Lode at Magambazi North |
|
including |
98.1 |
105.1 |
7.0 |
5.32 |
| (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, as a prioritized system of sample submission has been introduced due to the previously identified sample backlog. Additional significant results will be released and posted as received. |
Click https://media3.marketwire.com/docs/cana1205.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. 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