Canaco Resources Inc's Profile

Gold & Diamonds Exploration & discovery in Tanzania & Mexico

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Canaco Resources Inc., Vancouver, B.C. TSX.V : CAN, Frankfurt Stock Exchange : HJ6, is an emerging junior exploration company.

The Company is actively engaged in developing an exploration portfolio that includes:

Gold and Diamond assets in Tanzania and the El Oro gold project in Mexico.

Built on a foundation of experienced management and focused on rapidly advancing exploration projects in Tanzania and Mexico, Canaco is well positioned to build shareholder value over the short term through discovery and resource development.

Tanzania

The Handeni Gold District consists of numerous gold discoveries in an area of eastern Tanzania, highlighted by the Magambazi prospect, which currently hosts an active artisanal gold mining operation. Recent gold discoveries in the Handeni region have occurred on a district scale and have defined an extent of mineralization with a strike length of over 100 km.Read More >>

The Magembe Project is a diamond exploration target located in northern Tanzania.

The property surrounds the Mwadui (Williamson) Diamond Mine, and represents a portion of a buffer zone once surrounding the mine where exploration was prohibited. In 2003 the Mining Act was reformed, and Canaco Resources optioned the property in 2007.Read More >>

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Mexico - El Oro property

The 67 sq. km El Oro property. Mexico hosts one of the most significant historic gold-silver producers in Mexico, with past production of over 20 million ounces of gold equivalent over a 400-year period.

The property has excellent road access and is located 120 km northwest of Mexico City.

El Oro property is located in the east-west trending Trans-Mexican volcanic belt in the central part of Mexico. The El Oro property has excellent road access and is located 120 km northwest of Mexico City in the States of Mexico and Michoacán. The El Oro mines are past producers of gold and silver, and the mines hosted the largest known vein systems in the region. Past producing main veins varied between 1 m and 70 m in thickness, were mined over a 1.0 km to 3.5 kmstrike length, and over vertical distances of up to 250 m. Gold-silver mineralization in the El Oro property area is hosted in low sulphidation epithermal quartz and calcite veins. The El Oro property concession does not represent a producing property, and the Company’s current operations consist of an exploratory search for mineable deposits of minerals.

On May 5, 2006, the Company and Candente Resource Corp. (“Candente”) entered into an option agreement to jointly acquire up to a 70% interest in the 67 square kilometer El Oro property.

The El Oro property is being optioned from Minera Luismin SA de CV (“Luismin”), a 100 percent owned subsidiary of Goldcorp Inc. (Goldcorp).

The option agreement, entered into jointly (50/50) by Canaco and Candente, gives the combined companies the right to earn up to a seventy percent (70%) interest in all of the 24 El Oro mining concessions (14,950 hectares), held by Luismin (“El Oro Agreement”).

http://agoracom.com/ir/Candente/foru...

The terms of the El Oro Agreement are as follows:

1. earn a 50% interest by expending US$5,000,000 on exploration (cumulative exploration expenditure to June 30, 2008 - $801,800 (US$795,843)) and issuing 250,000 common shares (125,000 common shares have been issued by Canaco to date) in each of Canaco and Candente over a three-year period;

2. earn an additional 20% interest by expending an additional US$5,000,000 (US$10,000,000 total for 70% total interest) on exploration and development over an additional two years;

3. Goldcorp retains the right to earn back into a 70% interest by spending US$25,000,000 within four years on additional exploration and development; and

4. Goldcorp has the right to participate in future equity financings by each company, up to the greater of: the current percentage interest held in each company or 10% of the financing.

On September 12, 2008, the terms of the El Oro Agreement were amended whereby a three month extension was granted by Goldcorp. to the date by which the second year exploration expenditures must be met so that the date moves from November 30, 2008 to February 28, 2009 and a six month extension to the date by which the third year exploration expenditures must be met so that the date is moved from November 30, 2010 to May 30, 2011.

Management & Directors

Managemenrt

& Directors

Mr. Andrew Lee Smith, B.Sc., P.Geo.
Chairman & C.E.O.

Mr. Smith has over 20 years of experience in successfully exploring, developing and operating North American base and precious metal mining and gem projects. Mr. Smith joined Aurizon Mines Ltd. in 1985 and resigned in 1998 from the position of vice-president of exploration.

Mr. Smith is the co-founder of True North Gems, the company that is exploring and developing the first significant emerald and sapphire deposits in the Yukon. Mr. Smith holds a BSc and is a professional geologist as well as a member of the Association of Professional Engineers and Geoscientists of British Columbia.

Mr. Randy V.J. Smallwood, P.Eng
Independent Director

Mr. Smallwood is a geological engineer that brings over twenty years of exploration and mining experience to the Canaco board. Mr. Smallwood has a wealth of experience in mineral exploration, mine development and mine operations, working with companies such as Teck Cominco, Homestake, and Westmin Resources on North American mineral exploration and mine development projects from 1986 to 1994.

He joined Wheaton River Minerals Ltd. in 1994 and played a major role in the operational success of the Golden Bear Mine, transforming Wheaton River into a successful junior gold mining company. In 2001, Mr. Smallwood joined the Wheaton River corporate office as the Director of Corporate Development, and was responsible for the technical portion of all project and corporate evaluations within the Wheaton River / Goldcorp / Silver Wheaton group of companies. Mr. Smallwood is currently the Executive Vice President, Corporate Development for Silver Wheaton Corp.

Mr. David Parsons, C.G.A.
Independent Director & Chairman of the Audit Committee

Mr. Parsons is currently Director, Corporate Services and Financial Analysis for Goldcorp Inc. Mr. Parsons is a Certified General Accountant with over 20 years experience in the mining industry, having served in the roles of Controller, Chief Financial Officer and Director of mining companies. Since 2001 Mr. Parsons worked with Wheaton River Minerals Ltd. and was directly involved in the acquisitions by Wheaton and the merger with Goldcorp.

Mr. Brian Lock
Director

Mr. Lock is currently the executive vice-president, Frontier Pacific Mining Corp. Mr. Lock has over 30 years of experience in the operations, feasibility, design engineering and construction of numerous precious metals and base metal mining projects around the world. Initially Mr. Lock held senior positions with a major international mining consortium and two major engineering companies, before, in 1985 forming and becoming president of Proton International Engineering Corp., a Canadian engineering and construction company devoted to the development of small- and medium-sized mining projects. Additionally Mr. Lock has managed and/or served as a director of several Canadian public and private companies.

Mr. Geoffrey D.G. Peretz
Director

Mr. Peretz has been in the investment industry for over 20 years specializing initially in discretionary portfolio management and Domestic and Offshore Trusts and more recently in early stage corporate financing, structuring and proof of concept.
Technical

Advisory board

Mr. David W. Moore, MSc., P. Geo.
Advisory Board Chairman

Mr. Moore has spent most of his 30+ year career with Teck Cominco Ltd. (Cominco Ltd., Cominco Resources International, Cominco American Incorporated). Most recently (1999-2001) acting as general manager of global exploration and (2001-2003) as general manager of exploration and business development. In addition to the preceding, Mr. Moore held a number of directorships over the past decade, including with Cominco Argentina Ltd., Cominco Brazil Ltd., Cominco Madencilik Sanayi A.S., Cominco Mexico S.A. de C.V. and Cominco Namibia Ltd.

Mr. Moore's experience in both base and precious metals ranges from grassroots exploration to feasibility and project development. Mr. Moore holds an MSc in geology and the PGeo designation from the Association of Professional Engineers and Geoscientists of British Columbia. He is currently a member of the honorary advisory board of the British Columbia & Yukon Chamber of Mines.

Ms. Joanne Freeze, B.Sc., P. Geo.

Ms. Freeze is the President, Chief Executive Officer and Director of Candente Resource Corp. Ms. Freeze obtained a bachelor of arts in geography from the University of Western Ontario in 1978 and a bachelor of science in geology from the University of British Columbia in 1981.

Since entering the mineral exploration business in 1979, Ms. Freeze has managed exploration programs and evaluated projects for numerous international mining companies, both juniors and majors, such as Queenstake Resources Ltd., Arequipa Resources Ltd., Mountain Province Mining Inc., Placer Dome Inc., Dia Met Minerals Corp., Hughes-Lang Group and Utah Mines Ltd. (BHP). Exploration targets have included nearly all types of mineral deposits but gold has been the dominant focus. Ms. Freeze will advise the company on corporate matters related to financing and market awareness and as well will bring to the company her technical expertise in the area of exploration on properties that the company acquires.

Dr. Alan Carter, B.Sc., PhD.

Dr. Carter has a BSc degree in geology from the University of Nottingham, U.K., and a PhD from the University of Southampton, U.K., and has 18 years of experience in the minerals exploration industry.

Dr. Carter spent seven years working for Rio Tinto Corp. in South America and the United Kingdom before resigning his position as exploration manager, Bolivia in 1996 to join Balaclava Mines as president and chief executive officer. At Balaclava, Dr. Carter oversaw the acquisition and exploration of a number of gold projects in Peru and Ecuador. He joined Billiton PLC in 1998 and moved from Peru to Vancouver, B.C., in 2000 where he was instrumental in the development of an aggressive strategy aimed at developing partnerships with junior exploration companies. Following the merger with BHP, Dr. Carter assumed the role of manager, business development for BHP Billiton Diamonds where he was responsible for the commercial aspects of BHP Billiton's global portfolio of nickel and most recently diamond exploration projects. Dr. Carter is currently the chief operating officer of Peregrine Diamonds Ltd.