Canaco Resources Inc.: Corporate Update
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 10/18/10 -- Canaco Resources Inc. (TSX VENTURE: CAN) ('Canaco') has been asked by the TSX Venture Exchange to comment on a news release issued by Sonora Gold & Silver Corp. ('Sonora') on October 15, 2010. Sonora's news release indicates that it has an option on a Primary Mining License (PML) that has been converted into a Mining License (ML). Canaco has reviewed the Sonora news release.
Canaco has met with the Commissioner of Mines in Tanzania who has confirmed the validity and status of Canaco's existing Prospecting License (PL) which provides Canaco with exclusive rights to the area of the Magambazi discovery. The Commissioner has also informed Canaco of the existence of competing rights in the form of a 0.075 sq. km. PML within Canaco's 196 sq. km. Kilindi PL which was previously not indicated as being present within Canaco's PL. The PML is located within the area that Canaco has been drilling while outlining the Magambazi gold trend.
The Commissioner has expressed to Canaco concerns about the ability of a small ML to be sufficient to accommodate any mining operations and about the potential detrimental impact on Canaco's shareholders, the Government of Tanzania and the impairment of the advanced exploration program at Magambazi. Therefore, the Commissioner has advised Canaco that it has suspended the transfer of the ML to Sonora and will intervene to arbitrate a fair and equitable resolution to the competing interests in order that the project can move forward.
All affected parties have been called by the Commissioner to meet in Dar es Salaam in the next 48 hours for an arbitrated resolution that will be in the best interest of all parties. Canaco will continue to work diligently towards what it expects to be a speedy and favourable resolution to maintain the integrity of the Magambazi discovery, and is continuing to progress exploration and definition drilling activities on the PL.
Canaco thanks the Tanzanian Government for their continued support of the company's efforts.
Andrew Lee Smith, P.Geo, CEO
Canaco Resources Inc.
Dr. Jingbin Wang, Chairman
Canaco Resources Inc.
Canaco relies on litigation protection for 'forward-looking' statements. This press release contains forward-looking statements that are based on Canaco's current expectations and estimates. Forward-looking statements are frequently characterized by words such as 'plan', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate', 'suggest', 'indicate' and other similar words or statements that certain events or conditions 'may' or 'will' occur, and include, without limitation, statements regarding Canaco's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements, including but not limited to: risks related to Canaco's mineral rights in Tanzania; risks related to the exploration and development of mineral properties; actual results of current exploration activities; current global economic conditions; conclusions of future economic evaluations; changes in project parameters as plans continue to be refined; environmental risks; future prices of gold and other metals; currency fluctuations; possible variations in ore reserves, resources, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; risks related to joint venture operations; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; and those factors discussed in the section entitled 'Risk Factors' in Canaco's management's discussion and analysis for the nine month period ended March 31, 2010. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Canaco disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Canaco Resources Inc.
Nicholas Watters
Investor Relations
604-488-0822 or 1-866-488-0822
investors@canaco.ca
www.canaco.ca