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Canaco Resources Inc. announced 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 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. 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. |
