News after marketCanaco Resources drills 37 m of 12.45 g/t at Magambazi
2010-07-16 15:28 MT - News Release
Dr. Jingbin Wang reports
CANACO INTERSECTS 37M AT 12.45 GRAMS PER TONNE GOLD AT MAGAMBAZIINCLUDING 23M AT 19.14 GRAMS PER TONNE GOLD - MORE RESULTS TO COME
Canaco Resources Inc. is releasing new gold results of 37metres at 12.45 grams per tonne Au, including 23 metres at 19.14 g/t Au(MGZD066), from Magambazi, at the company's Handeni gold project in theHandeni region of the United Republic of Tanzania. This compellinghigh-grade intercept with an approximate true width of 30 metres inMGZD066 confirms the presence of a core of thick, high-grade goldmineralization as a component of Magambazi main lodes. Further drillingwill now be prioritized to test the northern extension of thishigh-grade core, between Magambazi and Magambazi Central.
Results from drilling have also confirmed that a significantvolume of near-surface gold mineralization and two distinct lodepositions occur at Magambazi North: a steep east-dipping eastern lode,interpreted to be the northern strike extension of the Magambazi mainlodes (that is, MGZD048 -- 60 m at 1.67 g/t Au, including 23.5 m at2.86 g/t Au; refer to Canaco's news in Stockwatch on May 27, 2010), andthe flat-dipping south-plunging western lodes which are lower grade butnear surface, representing a large volume of gold mineralization withpotential for open-pit mining.
"Canaco's technical team considers these results highlysignificant," said Andrew Lee Smith, Canaco's president and chiefexecutive officer. "The confirmation of continuity in structure andgrade of a high-grade core and the recognition of the Magambazi mainlodes and Magambazi North as separate parallel zones of near-surfacegold mineralization has a dramatic, positive impact on the overallpotential of the Handeni project."
MGZD066 was targeted on the northernmost section drilled atMagambazi to determine if the very high-grade core, intersected indiamond drill holes MGZD001 (59 m at 4.28 g/t Au), MGZD012 (56 m at6.39 g/t Au), MGZD035 (16 m at 5.45 g/t Au) and MGZD045 (22 m at 6.79g/t) (refer to Canaco's news in Stockwatch from Oct. 6, 2009, Dec 16,2009, March 8, 2010, and May 3, 2010), continued on the most northernsection drilled at Magambazi.Other diamond drilling over the last eight weeks has been focused ondelineating the near-surface extent of the lower-grade Magambazi Northarea and understanding the structural setting of the mineralization,with numerous (15) short holes drilled. Significant results returnedfrom the Magambazi North area include:
- 30.2 m at 1.64 g/t Au (MGZD063 from 119.0 m);
- 22.0 m at 1.22 g/t Au and 12.4 m at 1.19 g/t Au (MGZD055 from 47.0 and 21.7 m, respectively);
- 15 m at 1.29 g/t Au (MGZD054 from 50 m);
- 10.3 m at 1.99 g/t Au (MGZD052 from 39.7 millimetres);
- 10.4 m at 1.18 g/t Au (MGZD051 from 14 m);
- 22.4 m at 0.99 g/t Au (MGZD062 from 100 m);
- 3.0 m at 9.44 g/t Au (MGZD059 from 129 m).
Additional drill results from Magambazi andMagambazi North are pending and will be announced as soon as possibleThe Magambazi and Magambazi North prospects are part of a1.4-kilometre-long trend of gold mineralization now defined byhigh-grade drill results, artisanal mine workings and soil geochemicalanomalies. This 1.4-kilometre trend represents the southernmost segmentof the 11-kilometre Handeni gold trend contained within the company'sHandeni gold project. The planning, execution and monitoring of qualitycontrol programs at the Handeni project are under the supervision ofMr. Smith, PGeo, Canaco's CEO, and Dr. David Groves, Canaco's directorof project development, Tanzania. Mr. Smith and Dr. Groves arequalified persons as defined by National Instrument 43-101. Canacoutilizes an industry standard QA/QC protocol with respect to samplingprocedures. Blanks and certified reference standards are inserted intothe sample stream to monitor laboratory performance and duplicates ofpulps and bulk rejects are also used to monitor laboratory performance.
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