Canaco Arranges $5 Million PEA for Magambazi

Canaco Resources (CAN.TSXV) announced details of a $5 million Preliminary Economic Assessment (PEA) program at Magambazi, part of the Company’s Handeni project in Tanzania, Africa.  The PEA is expected to be completed by June 30, 2012.

Canaco also announced the appointment of Sean Waller, P.Eng, to its Advisory Board.  Mr. Waller is President of Candente Copper Corp.  and a registered Professional Engineer with over 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.

Highlights:

* 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.

Andrew Lee Smith, President and CEO of Canaco Resources:

“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.”