Cangold Reports on Phase I Drilling Program at Plo
Cangold Reports on Phase I Drilling Program at Plomo
VANCOUVER, BRITISHCOLUMBIA--(Marketwire - Sept. 8, 2008) - CANGOLD LIMITED (TSXVENTURE:CLD) (the "Company") has completed the Phase I core drillingprogram on the Plomo Project in northwestern Sonora, Mexico. Theobjective of the first-pass drilling was to gain a better understandingof the structural control of the gold mineralization within the 5 by 3kilometre structural corridor identified by surface mapping andsampling, and to look for areas where the flat-lying gold-bearingstructures coalesce into a larger zone with resource potential.
The Phase 1 drilling program comprised 1,498.5 metres in 10 widelyspaced holes. Targets tested in this program included the gold-bearing,altered, low angle structures of Banco de Oro (1 hole), Pavorreal (6holes), San Perfecto (2 holes), and Bonancita (1 hole) zones. In mostholes, the targeted structures were intersected as planned and, to somedegree, were gold-bearing.
Hole SP08-001, drilled immediately below the Banco de Oro workings(up to 298.0g/t gold), did not intersect the structure, likely due to afault offset. Drill holes SP08-002 and SP08-003 were drilled at SanPerfecto (see drill-hole map on the Company web-site at www.cangold.ca).The low angle structural zones noted on surface were intersected andshow variable intensity of fracturing, brecciation, chloritization,quartz veining, silicification and disseminated pyrite. SP08-002intersected 4.0 metres grading 0.92g/t gold starting at 5.7 metres.SP08-003 was more intensely fractured and altered and intersected 11.65metres grading 0.66g/t gold starting at 18.3 metres, including 2.28g/tover 2.0 metres. Drill intersections are believed to represent truewidths.
Core holes SP08-004 to SP08-009 were drilled in the Pavorreal areaand intersected wide sections of intense alteration. SP08-006intersected 30 metres of well foliated rock with tourmaline andhematite-jarosite alteration but yielded no significant assays. HolesSP08-005 and SP08-008 intersected wide intervals of silicified,fractured, and pyritic diorite but contained only narrow intervals ofgold mineralization with anomalous copper, lead and zinc (see tablebelow). SP08-010 was drilled at Bonancita with the objective of hittingthe very fractured/sheared pyritic zone observed on surface. Itintersected 130 metres of sheared and crackle-brecciated andesite, withdisseminated pyrite and sporadic brecciated quartz veins but returnedno significant assays.
The Phase I widely spaced drilling at Plomo has demonstrated thatthe flat lying structures observed on surface play an important role inlocalizing gold mineralization. It would appear that another set ofcontrols, such as cross-cutting structures, is required in order toupgrade the gold. As such, detailed geological mapping and rocksampling continued in the San Perfecto area after the drilling wascompleted, with a particular effort towards identifying majorstructures, alteration types and geological units in order to betterdiscern the spatial relationships and controls of the goldmineralization. This work continues to outline significant goldmineralization, over an area approximately 400 metres across,associated with tourmaline-sericite alteration, gossan, and low anglestructures in diorite and granodiorite east of SP08-003. Of 21 new chipchannel samples collected across veins, structures, and more intenselyaltered areas, 13 assayed greater than 0.3g/t gold, and of those 5 weregreater than 1.0g/t gold.
At Pavorreal, where widespread gold was encountered in surfacesampling yet no significant values encountered in the subsequentdrilling, a similar program of detailed geological, alteration andstructural mapping is proposed. A new compilation of all this data willthen be used to generate new targets for future drilling.
Highlights of Phase I Drilling:
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Drill Hole From (m) To (m) Interval (m) Au g/t
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SP08-002 5.70 9.70 4.00 0.92
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including 7.70 9.70 2.00 1.60
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SP08-003 18.30 29.95 11.65 0.66
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including 21.00 23.00 2.00 2.28
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SP08-005 30.00 32.00 2.00 1.06
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SP08-008 9.30 11.30 2.00 0.59
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In a regional context, gold mineralization at the Plomo Project isbelieved to be related to the Mojave-Sonora Megashear (MSM). The MSM isa northwest-trending left-lateral, strike slip fault zone up to 5kilometres wide and extending for hundreds of kilometres throughnorthern Sonora, southern California and Arizona, and is interpreted totransect the southwest corner of the Plomo Project area. Many of thegold mines and prospects in Sonora occur within or are adjacent to theboundary of this regionally extensive structure, including Mexico'slargest gold mine, the Penoles / Newmont La Herradura deposit, whichlies 25 kilometres to the west of Plomo and contains a global resourceof 104,063,824 tonnes averaging 0.84 g/t gold (Penoles 2006 AnnualReport). Other gold mines along the MSM include La Choya, and ElChanate in the Caborca region of north-western Sonora, and Mesquite andPicacho in the Yuma area of south-western Arizona and south-easternCalifornia. The targets at Plomo are low grade, high-tonnagefault-related gold deposit amenable to open pit mining and heapleaching, similar to the aforementioned mines. The relationship of goldmineralization to flat-lying structures is typical of deposits withinthe MSM and the Company is encouraged by the confirmation of thisrelationship on the Plomo Property.
The 4,279 hectare Plomo Project lies within the Altar desert ofnorth-western Sonora, approximately 320 kilometres northwest ofHermosillo, Sonora. It is easily accessible by paved highway andsecondary gravel roads. Cangold is earning a 100% interest in the PlomoProperty, subject to a 2% NSR.
Robert F. Brown, P. Eng and Vice-President of Exploration forCangold and its wholly owned subsidiary, Coboro Minerales de Mexico,S.A. de C.V., is designated as the Qualified Person for the PlomoProject under the meaning of NI 43-101 and has reviewed this newsrelease. Samples were assayed at SGS Labs in Durango. The Company'sQA/QC program includes the regular insertion of blanks, splits, andstandards into the sample shipments.
ON BEHALF OF THE BOARD
Robert A. Archer, P. Geo., President & CEO
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