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Canaco Resources Inc. announced details of a $5 million Preliminary Economic Assessment program at Magambazi planned for completion by the end of June 2012.
The Company also announces the appointment of Sean Waller to its Advisory Board. Resource Calculation The drill program presented in Canaco's 2011/12 exploration program has been designed to support the completion of an initial resource calculation at Magambazi by the end of the first quarter of 2012. Based on rig availability and anticipated productivity, delineation drilling for the purposes of calculating the initial resource estimate will be completed by December 31, 2011. Diamond drilling will continue over the next 12 months to provide continued detailed assessment of Magambazi mineralization. PEA Program The Company's 2011/12 exploration and development budget includes plans for engineering work that will lead to the completion of a PEA by the end of June 2012. The PEA will include design and field work, metallurgical testing, geotechnical assessment, mill flow-sheet design, economic analysis, preliminary mine plan and operations layout, and preliminary production schedule. Canaco is currently in the process of selecting an engineering consulting firm to initiate the Magambazi PEA. A schedule to establish parameters for a pre-feasibility/feasibility program will follow. Permitting Canaco has been engaged in the permitting process for the past 18 months in order to apply for a mining license on the primary mining licenses purchased from Magambazi Mines Limited in 2010. The Tanzanian process requires the acquisition of an environmental certificate, which includes impact assessments and public hearings from village level to regional stakeholders, prior to submission of an application for a mining license. The environmental certification process at Magambazi has been through its final review by the National Environment Management Council, and Canaco expects to receive environmental certification by the end of 2011. Once received, the environmental certificate will allow Canaco to submit an application for the mining license. The application has been prepared in anticipation of submission and review. Management Additions In anticipation to the initiation of a development program based on the PEA, Canaco is sourcing candidates for the position of Vice President Project Development. This Vancouver-based position will be filled by a qualified professional who will lead a team of Canaco technical personnel and consultants as Magambazi advances through development toward production. Canaco also announced the addition of Sean Waller, P.Eng., to the Company's Advisory Board. Mr. Waller is President of Candente Copper Corp. and a registered Professional Engineer with more than 25 years of international experience in mining project management, evaluation, design and operation, with a specific focus on large-scale copper projects and gold projects. Prior to joining Candente he was with AMEC Americas Limited Mining Division in Vancouver where he held the positions of Vice President of Global Business Development and Senior Project Manager. He has also worked with SNC-Lavalin's Mining Division and Freeport-McMoRan at its Grasberg copper operation in Indonesia. He is a member of the Canadian Institute of Mining, Metallurgy and Petroleum where he has served on the CIM National Executive Council, and he is the immediate past Vice President for District 6 (British Columbia and Yukon). Mr. Waller has a B.Sc. in Geology from the University of British Columbia in Vancouver and a Master's Degree in Mineral Process Engineering from The Montana School of Mines in Montana. Canaco President and CEO Andrew Lee Smith said: "These important milestones are achievable in the next 12 months and will allow the acceleration of the development program at Magambazi. Combined with the appointment of Sean Waller to the Advisory Board, these plans signal Canaco's commitment to the rapid advancement of the Magambazi project, which we believe is a world-class asset." |
