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Canaco Resources Inc. provided an update on the mineral resource estimate and to announce the commencement of a comprehensive metallurgical test work program at the Handeni project in Tanzania.
This work will provide key input information to the upcoming Magambazi preliminary economic assessment scheduled for completion by the end of the third quarter of 2012. The initial mineral resource estimate is on track for completion at the end of the first quarter 2012 under the supervision of James Gray, P. Geo, of Advantage Geoservices Limited, Maple Ridge, BC, Canada. In addition to various field and operations roles, the majority of Jim's 26 year career includes responsibility for resource modeling and project evaluations at Teck Resources Limited and then at Fronteer Gold. Specifically, his experience in a wide variety of geologic settings using a range of geological, statistical and geostatistical modeling techniques is well suited for application to the Handeni project. Canaco's metallurgical test work program will determine the effect of mineralization, lithology and grade variation on metallurgical recovery, grind size, leach residence time, work index and abrasion characteristics. To this end, approximately 2,900 samples have been received at the G&T Metallurgical Services laboratory in Kamloops, BC, and the program is expected to be completed near the end of the first quarter of 2012. The program is being completed by G&T Metallurgical Services under the direction of Dr. Jim King, Canaco's qualified person for metallurgy and process design. Jim's experience includes more than 40 years associated with the design, commissioning and operation of major mineral processing facilities. During his long career at Placer Dome Jim played a key role in the metallurgy, evaluation, establishment and expansion of many successful mineral processing operations including those at Porgera, Zaldivar, North Mara and others. G&T Metallurgical Services has provided an extensive range of metallurgical and mineralogical services to the mining and mineral exploration industry since 1990. G&T's laboratory houses a modern, well-equipped mineral processing research and development complex which includes unit laboratories for sample preparation, mineral processing testing, mineralogical/modal analysis, chemical analysis and process pilot plant operation. Canaco discovered gold mineralization at Handeni in eastern Tanzania in 2009. Since that time the Company has drilled more than 400 holes along the Magambazi ridge, a 1.4-kilomatre outcrop where mineralization was first encountered. |
