WOOOW,,,,CAN-V NEWS OUT TODAYCanaco drills 59 metres of 4.28 g/t Au at Magambazi
2009-10-06 06:09 ET - News Release
Mr. Andrew Smith reports
CANACO ANNOUNCES COMPLETE AND RESTATED RESULTS FROM MAGAMBAZI DDH 001
Canaco Resources Inc. has released complete and restated assay results from the first drill hole of the company's current diamond drilling program at the Magambazi gold prospect located in the Handeni region of the United Republic of Tanzania.
As presented previously (refer to news in Stockwatch Sept. 28, 2009), MGZD001 is the first drill hole in a 2,000-metre program at Magambazi, which began in early September and marks the first diamond drilling campaign ever to be conducted on the property. The 293-metre drill hole (MGZD 001) intersected a broad, intense alteration zone and sulphide mineralization (pyrrhotite, arsenopyrite, pyrite and chalcopyrite) with trace amounts of visible gold in eight separate one-metre intervals. This zone of alteration and mineralization intersected the target at approximately 70 metres below surface and has returned an overall gold grade of 4.28 grams gold per tonne over 59 metres based on additional assay results received from the lowermost interval of the mineralized zone. High-grade gold mineralization occurs in two major intervals within the broader alteration envelope.
Assays for the complete mineralized interval have now been received for all of the 73 metres of sampled drill core. The previous announcement did not included three mineralized one-metre core samples whose delivery to the assay lab had been delayed. The average grade for the three-metre interval for which assays have been recently received is 7.39 grams gold per tonne.
RESTATED RESULTS FROM MGZD001 From To Interval(1) Au grade(2)Drill hole No. Azimuth Dip (metres) (metres) (metres) (grams/tonne)MGZD001 060 -50 148 206 59 4.28(3) including 154 166 12 4.18 including 189 206 17 10.38MGZD002 060 -75 Assays pendingMGZD003 060 -61 Assays pendingMGZD004 060 -50 Assays pending(1) Drill intercept lengths are downhole lengths reflecting apparent widthsof mineralization with true widths ranging between 80 per cent to 100 per cent of the reported downhole lengths.(2) Drill intercepts are based on a 0.3-gram-per-tonne-gold cut-off with noupper cut.(3) Grade calculation includes up to six metres of internal dilution.
MGZD002 and MGZD003 have been drilled on the same section as MGDZ001. MGZD004 is the first of three holes to be drilled on a section 80 metres to the southeast to test the strike extension of the mineralization first encountered in MGZD001.
The Magambazi prospect lies at the southern end of the 10-kilometre Handeni gold trend, an area of anomalous gold geochemistry defined by soil sampling surveys and the presence of artisanal mining operations, including Canaco's Magambazi, Magambazi North, Semwaliko, Semwaliko North and Majiri Bomba prospects
Canaco has the option to earn a 100-per-cent interest in the Magambazi property by making a $1.8-million (U.S.) cash payment and providing a 2-per-cent net smelter royalty (NSR) to Magambazi Mines Ltd., a Tanzanian company that represents the interests of artisanal miners and local families. Canaco also owns a 100-per-cent interest in the contiguous 200-square-kilometre Kilindi prospecting licence (PL) which contains the entire strike extent of the Handeni gold trend as it has been defined to date.
The planning, execution and monitoring of quality control programs at the Handeni project are under the supervision of Andrew Lee Smith, PGeo, Canaco's chief executive officer; and Dr. David Groves, Canaco's director of project development, Tanzania. Mr. Smith and Dr. Groves are qualified persons as defined by National Instrument 43-101. Canaco uses an industry-standard QA/QC protocol with respect to sampling procedures. Core is sawn in half with one-half shipped for analysis to SGS Laboratories in Mwanza Tanzania. The remainder of the core is stored and secured for future assay verification. Blanks and certified reference standards are inserted into the sample stream to monitor laboratory performance and duplicates of pulps and bulk rejects are also used to monitor laboratory performance.
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