Dec 7 2010
Canaco Resources Inc. (TSX VENTURE:CAN) has announced spectacular new drill results from the Company's Magambazi gold discovery located in the Handeni region of the United Republic of Tanzania.
Infill drilling has focused on delineating the high grade shoot component of the Magambazi Main Lode, down dip extensions to mineralization and possible extensions of mineralization to the south.
New results received include:
- 48.6metres at 14.81g Au/t including 16.8 metres at 41.51g Au/t and 8.4metres at 80.90g Au/t (MGZD096 - section 60,480N);
These compelling high-grade intercepts provide further confirmation of the continuity of grade and structure to a high-grade core, or "keel" zone that has been indicated from previous drilling along strike. This flat plunging high-grade core appears to occupy a specific location within the Magambazi mineralized body and drill intercepts in this zone typically contain elevated amounts of visible gold.
Drilling will ramp up over the next month with the arrival of a third diamond drill rig on site to conduct definition drilling. Exploration in the near future will also include testing several targets to the west of Magambazi (including a western shoot of ore outcropping at Magambazi North) which have been highlighted by the recent detailed aeromagnetic and ground IP surveys conducted over the past few months.
Other work being conducted on the project includes road construction (creating an all weather road from the main highway to Magambazi by upgrading the existing trails) and the construction of a new camp, which includes a permanent office, three large core storage and cutting facilities and accommodation to house up to 50 personnel.
The Magambazi and Magambazi North prospects are part of a 1.4 kilometre long trend of gold mineralization now defined by high-grade drill results, artisanal mine workings and soil geochemical anomalies. This 1.4 kilometre trend represents a segment of a 17 kilometre trend of gold mineralization known as the Handeni Gold Trend contained within the Company's Handeni Gold Project.
The planning, execution and monitoring of quality control programs at the Handeni project are under the supervision of Andrew Lee Smith, P.Geo, Canaco's CEO 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 utilizes an industry standard QA/QC protocol with respect to sampling procedures. 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.