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Canaco Resources Begins RC Drilling at Handeni Project in Tanzania

Canaco Resources Inc. (TSX VENTURE:CAN) has reported that reverse circulation drilling has commenced on its 100%-owned Kilindi licence on the Handeni project in Tanzania.

A total of 10,000 metres of drilling is planned for the four key target areas of Kwadijava, Kwadijava South, Majiri and Majiri Bomba. Infill and extension drilling has also recommenced on the Magambazi zone with three rigs, and an additional fourth rig is scheduled to start in February to accelerate Magambazi definition drilling.

Three high-priority targets are defined along the Majiri-Semwaliko-Kwadijava (MSK) trend, supported by artisanal workings including bedrock and alluvial operations, soil geochemical anomalies, and magnetic and IP targets/trends. These targets will be the principal focus of the RC drill campaign.

The Handeni gold trend is now recognized as consisting of two parallel gold trends with a combined strike length of over 15 kilometres. All of Canaco's diamond drilling to date, which comprises more than 100 holes totalling 30,000 metres, has been along the Magambazi trend. The MSK trend has not been drill tested. The MSK trend is a sequence of metamorphosed mafic rocks (amphibolites) inter-bedded with sedimentary rocks (shales and siltstones – now kyanite-bearing gneiss), directly above a major geological boundary (basement granitic gneiss).

Quality Control

The planning, execution and monitoring of Canaco's quality control programs at the Harvest project are under the supervision Jeff Heidema, P.Geo, Canaco's VP Exploration, and Dr. David Groves, Canaco's Director of Project Development. Mr. Heidema 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.

Source:

Canaco Resources Inc.

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