Canaco Announces 200,000 Metre Exploration Drill Program at Handeni
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/15/11 -- Canaco Resources Inc. (TSX VENTURE: CAN) ('Canaco' or the 'Company') is pleased to announce details of its 2011/2012 expanded and accelerated exploration activities at its Handeni project in eastern Tanzania. A total of 200,000 metres of drilling is planned for completion at Handeni by the end of June 2012.
Canaco plans to add up to three additional diamond drill rigs at Magambazi for infill drilling and regional target follow-up. The entire one-kilometre strike length of Magambazi will be drill-tested to 20 metre spacing with approximately 500 additional holes totalling 95,000 metres by the end of June 2012. An additional 20,000 metres of diamond drilling is targeted at high priority targets developed at Kuta, Kwadijava, and Magambazi Deep. In addition, the comprehensive exploration program will provide for immediate diamond drill follow-up of favourable targets developed from ongoing RC drilling.
The planned program also calls for doubling the pace of RC drilling through the contracting of a second rig. The increased productivity is required to complete the planned program of approximately 180 additional RC drill holes totalling 23,000 metres along the Majiri-Kwadijava ('MK') Trend by the end of June 2012. This drilling will focus on priority targets at the Kwadijava South, Majiri, Bahati, Kijani, and Magambazi North extension areas.
Based on the success of these drill programs, Canaco is planning up to an additional 70,000 metres of follow-up drilling at Magambazi and along the MK Trend.
Canaco is currently drilling approximately 8,000 metres per month with seven diamond drill rigs on the Magambazi discovery zone and one reverse circulation (RC) rig drilling regional targets on the MK Trend, for a total of eight rigs on the Handeni project (see attached map). Expenditures on drilling currently total about $2.0 million per month.
To view the Map, please visit the following link: http://media3.marketwire.com/docs/can815_F01.pdf.
President and CEO Andrew Lee Smith said: 'We have been ramping up our drill program at Handeni and have increased the rig count from three at the beginning of 2011 to eight today. With the plans outlined here, we are now embarking on the most ambitious drill program in the Company's history. This work is expected to allow us to rapidly advance Handeni into development over the next 12 months, with an initial resource estimate and preliminary economic analysis planned for 2012.'
Management has proposed a budget of $41 million to the Board for the 12-month period ending June 30, 2012, including $35 million for exploration at Handeni. This amount also includes $300,000 for construction of an on-site sample preparation laboratory to support the accelerated drill program and expedite the assay process.
Quality Control
The planning, execution and monitoring of Canaco's quality control programs at the Handeni project are under the supervision of Jeff Heidema, P.Geo., Canaco's Vice President 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.
About Canaco
Canaco is a Vancouver-based mineral exploration company focused on advanced exploration projects in Africa. Built on a foundation of experienced management, the Company is rapidly advancing the Handeni project in Tanzania and is well positioned to build shareholder value through discovery and resource development.
Canaco's shares trade on the TSX Venture Exchange under the symbol CAN.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., President, CEO and Director
Cautionary Statement Regarding Forward-Looking Information
This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as 'anticipate', 'believe', 'plan', 'expect', 'intend', 'estimate', 'forecast', 'project', 'budget', 'schedule', 'may', 'will', 'could', 'might', 'should' or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks associated with mineral exploration and development; metal and mineral prices; availability of capital; accuracy of the Company's projections and estimates; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; political or economic developments; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the price of gold; the demand for gold; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; and the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking contained herein, except in accordance with applicable securities laws.
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.
Meghan Brown
Director Investor Relations
604-488-2557 or 1-866-488-0822
mbrown@canaco.ca
www.canaco.ca