Dr. Jingbin Wang reports
CANACO DRILLS 32M AT 9.27 GRAMS PERTONNE GOLD AT MAGAMBAZI CENTRAL, EXTENDS THE MAGAMBAZI MAIN LODE 120MNORTH WITH STEP-OUT DRILLING
Canaco Resources Inc. has releasedadditional gold results of 33.0 metres at 3.39 grams per tonne Auincluding 9.9 m at 6.25 g/t Au (MGZD053) and 68.3 m at 1.9 g/t Au(MGZD067) from the interpreted Magambazi Main lode position on MagambaziNorth, at the company's Handeni gold project in the Handeni region ofthe United Republic of Tanzania.
Results, also, received include a further high-grade intercept of 32.0 mat 9.27 g/t Au (MGZD073) from the Central Magambazi area, 50 verticalmetres above MGZD043 21.2 m at 4.80 g/t Au (refer to news in StockwatchMay 3, 2010, and July 12, 2010) and 200 m northwest (grid north) of the37.0 metres at 12.45 g/t Au (MGZD066) at Magambazi (refer to news inStockwatch July 12, 2010). This infill hole was drilled to test theup-dip position of the Main Magambazi lode and has significantlyincreased the size of the lode in the Magambazi Central area.
Drill holes MGZD053, MGZD067 and MGZD068 were drilled 80 m to 120 mnorth of drill hole MGZD048 (60.0 m at 1.67 g/t Au -- refer to news inStockwatch May 27, 2010) to test the northern extension of the steepwest-dipping Magambazi Main lode position on Magambazi North. All threeof the drill holes have intersected large zones of alteration andsulphide mineralization, effectively adding 120 m to the known strike ofthe high-grade Magambazi Main lode with the following intercepts:
- 33.0 m at 3.39 g/t Au (MGZD053 from 52 m) including 9.9 m at 6.25 g/t Au (from 70.8 m);
- 68.3 m at 1.9 g/t Au (MGZD067 from 54.7 m) including 13.3 m at 4.35 g/t Au (from 99.7 m);
- 33.3 m at 2.46 g/t Au (MGZD068 from 55.7 m) including 5.0 m at 8.04 g/t Au (from 56.7 m) and 6.7 m at 5.41 g/t Au (from 78 m).
The known strike of the Magambazi Main lode is now over 800 m. North ofhole MGZD053 (Section 60160N) the Magambazi Main lode is interpreted tojoin the Magambazi North lodes in a keel-shaped synform. However,additional drilling is required to confirm this interpretation. South ofthis area there are at least two separate lodes (west and east), whichdiverge southward.
Drilling on the northernmost section drilled at Magambazi North (60160N)has also intersected broad zones of near-surface gold mineralizationwith results of:
- 24.4 m at 1.38 g/t Au (MGZD056 from 42 m) including 11.1 m at 2.29 g/t Au.
This intercept clearly demonstrates that the near-surface Magambazisystem is open to the north and based on strong surface gold anomalismfrom soil sampling along strike (up to 1,218 parts per billion Au), itis anticipated that the mineralization will persist for at least 100 mto the north of the current limit of drilling.
Gold mineralization of significant widths and grade has now been drilledover 850 m strike at Magamabazi and Magambazi North with mineralizationopen north, south and down dip. Drilling continues to add tonnes to thegrowing volume of gold mineralization in the Magambazi area.Seventy-three diamond drill holes have now been completed for 16,294 m.All drill holes except for six have intersected gold mineralizationgreater than one gram per tonne Au.
The Magambazi and Magambazi North prospects are part of a 1.4 km longtrend of gold mineralization now defined by high-grade drill results,artisanal mine workings and soil geochemical anomalies. This 1.4 kmtrend represents the southernmost segment of the 11 km Handeni goldtrend contained within the company's Handeni gold project.
The planning, execution and monitoring of quality control programs atthe Handeni project are under the supervision of Andrew Lee Smith, PGeo,Canaco's chief executive officer, and Dr. David Groves, Canaco'sdirector of project development, Tanzania. Mr. Smith and Dr. Groves arequalified persons as defined by National Instrument 43-101. Canaco usesan industry standard QA/QC protocol with respect to sampling procedures.Blanks and certified reference standards are inserted into the samplestream to monitor laboratory performance and duplicates of pulps andbulk rejects are also used to monitor laboratory performance.
Additional information and public documents about Canaco, includingdrill hole intercepts, drill collar maps and images of 2009 explorationactivities, can be viewed at the company's website or at SEDAR.
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