Canaco Technical Report Below please find some light reading to occupy our time as we wait for assay results:
The gold mineralization exposed at Magambazi, through mapping and drilling, has significance with respect to establishing a deposit model that can be applied to exploration in the region and potentially as a deposit with extensions that may project onto the Kilindi property. Field observations indicate the Magambazi prospect contains numerous significant bedrock artisanal workings that are located on the western flank of an 11 kilometre geochemical anomaly. Local miners are exploiting gold mineralization within steeply dipping, north-north-westerly-trending occurrences of Sulfide and quartz veins.
From surface, mineralized occurrences are being mined over widths up to 10 m and define a north north-westerly trend with a total strike length of 350 m as observed to date. Drilling has confirmed that this mineralization continues at depth, and is traceable laterally beyond the known surface extents of mineralized showings. Mineralization is characterized as vein-related structurally-controlled orogenic gold associated with pyrrhotite, arsenopyrite, and locally graphite (Plate 5). The immediate host rocks are garnet-silica altered amphibolite, enclosed within a sequence of interbedded gneiss (of sedimentary and possibly volcanic origin) and amphibolite. A typical biotite-kyanite-quartz-feldspar gneiss is shown in Plate 5B. Multiple horizons are being traced, and two main zones have evolved from diamond drilling at Magambazi. What is apparent from sectional review is that significant gold is present outside of acknowledged ‘main zones’ of mineralization, or key intercepts as documented, and the mineralization system is in areas, seemingly pervasive. While separate internal gold intercepts exist that would be
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Canaco Resources Inc. - Handeni Property Page 43
Technical Report NI 43-101 – March 1, 2011
considered high-grade in terms of underground mining assessment, the overall type of mineralization can be difficult to quantify, and requires assessment as a potential pitable target.
Structurally, there are major steep faults that trend along the orientation of the mineralized system,although the nature of the rock in the main mineralized zones is competent. The alteration and later metamorphism appear to have annealed the areas of significant mineralization. This, and the decrease in pronounced compositional banding, suggests a high-grade metamorphic overprint of an originally lower metamorphic-grade orogenic gold deposit.