Canaco Acquires Copper-Gold Exploration Assets in Ethiopia
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Jan. 21, 2010) – Canaco Resources Inc. (TSX VENTURE:CAN) is gratified to make well known which the Company has entered in to a minute of vigilant with Beijing Donia Resources Co. Ltd. (“Donia”) to take 70% of the superb shares of Harvest Mining PLC (“Harvest”), a in isolation Ethiopian scrutiny company. Harvest owns 100% seductiveness in 605 km2 of scrutiny concessions in the Tigray state of Ethiopia. These concessions host multiform identified bullion enriched, polymetallic volcanogenic large sulphide (“VMS”) prospects.
Harvest’s scrutiny resources (the Nefasit, Hamlo, Terakimti, Adi Nebrid, Igub and Medri Felasi benefaction respectively) have been located in the SW prolongation of the Neo-Proterozoic Asmara VMS sort Cu-Zn-Au-Ag metallogenic leather belt where multiform deposits have been formerly rescued in executive Eritrea. These discoveries embody the Bisha deposition (27M tonnes grading 2.08 grams bullion and 1.8% copper per tonne) and the Emba Derho, deposition (38M tonnes grading 1.08% copper, 0.18 grams bullion and 9.31 grams china per tonne – “Copper-rich initial ore”).
Initial scrutiny formula prove there is poignant intensity for the find of identical deposits on Harvest’s concessions. Since 2007, endless scrutiny activities have been finished including, remote sensing, geological mapping, geochemical dirt sampling, geophysical belligerent captivating surveys, IP surveys and endless trenching and training on comparison targets.
According to reports published by Harvest, the main scrutiny achievements have been as follows:
The Nefasit Concession Block
The Adi Angoda Prospect
Four intermittent sulphide zones with outcrops of aspect oxides have been mapped with clever bottom steel mineralization and a clever co-incident IP anomaly.
Diamond drilling formula for 4 not prolonged ago finished holes prove the presence of a initial sulphide copper-zinc ore physique next the aspect oxide cap. Two of these holes drilled to exam the IP reply encountered several ten scale far-reaching zones of bottom steel mineralization, together with sections of massive sulphides. Assay formula for these holes have been pending.
These results have reliable the intensity for the find of a medium-large size VMS sort copper-zinc deposition in this area.
The Medadib Prospect
Geological mapping has summarized a aspect oxide section which has 360 meters of aggregate set upon length and mineralization over widths of 3 to twenty meters. Analytical formula have reliable supernatural values for copper and zinc. An IP consult finished in Nov 2009 indicates a clever IP response co-incident with the aspect oxide section and is interpreted as indicating the participation of initial sulphides at depth.
Previous RC training of the aspect oxide top intersected a bullion mineralization with an normal density of 20m and normal bullion class of 4.6 g/t.
Terakimti Concession Block
Several zones of sulphide mineralization have been identified inside of the felsic tuffs and at the hit of the middle meta-volcaniclastic rocks and felsic tuff at Terakimti. The sulphide mineralized section measures 3.5 km along set upon and thirty m to 110 m far-reaching – locally reaching widths of up to 400 m.
Disseminated sulphides, aspect oxide zones have been identified in outcrop. Strong copper, zinc and lead anomalies have been reliable compared with the aspect oxide zones.
The Mai Sensela Prospect
a aspect sulphide section supernatural in Cu and Pb has been mapped with over a set upon length of 1,200 m and breadth trimming from twenty m to 100 m.
Contained inside of the aspect sulfide section a aspect bullion oxide section with a set upon length of 800 m and an normal breadth of twenty m has been tangible by aspect trenching. The normal bullion class is 3 grams bullion per tonne with rise values of 43 grams bullion per tonne. IP contemplating has rescued chargeability anomalies concurrent with the aspect bullion oxide mineralization and is interpreted as indicating the participation of initial sulphide concentrations at depth.
The Hamlo Concession Block
Geological mapping has summarized 7 sulphidic modification zones locally with massive sulphide oxide caps. In the north of the Hamlo block, a sulphide section with strike length of 2.2 km and density of 200 m to 300 m has been mapped. Within this sulphide section a large sulphide oxide section with an aggregate length of 1,200 m and density of 10-30 m has been identified.
The Wuhidet Prospect
Three sulphidic zones have been identified, together with one section measuring 4 km prolonged and 60 m wide.
Mapping has indicated a aspect sulphide section which measures 800 m along set upon and twenty m wide.
Initial margin work has indicated these sulphide zones have been strongly supernatural in Cu and Zn.
The Hamlo area contains a geological environment enlightened for the find of Au-enriched VMS deposits. Initial scrutiny programs will include extensive trenching, belligerent captivating and form IP surveys, and test drilling of comparison targets.
“The merger of Harvest Mining PLC by Canaco is a poignant eventuality in the corporate growth of the Company and is unchanging with the Company’s plan of appropriation modernized scrutiny projects staid for find programs,” pronounced Andrew Smith, Canaco’s CEO. “The geological intensity for the find of gold-enriched, polymetallic VMS deposits on Harvest’s properties is well-developed in the perspective of Canaco’s technical group and in most ways this awaiting mirrors the same intensity identified in the Company’s Handeni skill in 2006.”
The squeeze cost is C$6.0 million, on credit on shutting as follows: $4,000,000 in money and distribution of an one more 3,508,771 shares to Donia at a deemed cost of $0.57 per share (based on the shutting cost of the past thirty trade days from the date of the minute of vigilant and a 5% premium).
Since 2007, Harvest has outlayed about USD$4.4M for the above-mentioned scrutiny activities on the 6 scrutiny licenses, and has determined an handling capacity formed in Shire, Ethiopia with a clever technical group and scrutiny apparatus and infrastructure. Canaco expects to outlay a smallest of C$2 million in scrutiny costs on the properties in the initial year.
The merger of Harvest by Canaco is theme to a 90 day due industry period, and obtaining approvals from third parties, the TSX Venture Exchange and shareholders (if required).
Independent members of the Board of Canaco have deliberate a series of factors in last which the care for the merger is satisfactory and reasonable, together with the volume already outlayed on scrutiny expenditures and the intensity to host commercially viable copper and bullion deposits.
Dr. Jingbin Wang is a Director of both Canaco and Donia. Donia is additionally a sister association of SinoTech (Hong Kong) Corporation Limited, a carry out chairman of Canaco. Mr. Shuixing Fu, a Director of Canaco, is additionally an military officer of SinoTech. Dr. Wang and Mr. Fu do not but delay own any shares of Canaco. SinoTech currently owns 32 million shares of Canaco, representing 27.8% of the superb shares of Canaco. The 3,508,771 shares to be released by Canaco to Donia on shutting of the merger represents 3% of Canaco’s superb shares. The superfluous 30% seductiveness of Harvest is owned by an Ethiopian company.
Andrew Lee Smith, CEO
Dr. Jingbin Wang, Chairman
The Acquisition is theme to a series of conditions as set out above. There can be no declaration which the Acquisition will be finished as due or at all. The Company relies on lawsuit insurance for “forward-looking” statements. This press recover contains forward-looking statements which have been formed on the Company’s stream expectations and estimates. Forward-looking statements have been often characterized by difference such as “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “suggest”, “indicate” and alternative identical difference or statements which sure events or conditions “may” or “will” occur, and include, but limitation, statements per the Company’s skeleton with apply oneself to the scrutiny and growth of the projects. Such forward-looking statements engage well known and different risks, uncertainties and alternative factors which could means tangible events or formula to talk about materially from estimated or expected events or formula pragmatic or voiced in such forward-looking statements. Any forward-looking matter speaks usually as of the date on which it is done and, solely as might be compulsory by germane bonds laws, the Company disclaims any vigilant or requisite to refurbish any forward-looking statement, either as a outcome of brand new information, destiny events or formula or otherwise. Forward-looking statements have been not guarantees of destiny opening and thus unjustified faith should not be put on such statements due to the fundamental doubt therein. No eccentric consultant has rendered an consultant perspective on the property.
Neither TSX Venture Exchange nor the Regulation Services Provider (as which tenure is tangible in the policies of the TSX Venture Exchange) accepts shortcoming for the endowment or correctness of this release.
