Canaco’s gold discovery keeps growing in Tanzania

Canaco Resources (CAN.TSXV) announced results from 16 new drill holes at its Magambazi gold project in Handeni District, Tanga.

The emerging gold Company reported that priority infill and extension drilling has been completed at Magambazi and the initial mineral resource estimate is on schedule for completion by March 31, 2012.

Canaco noted that additional drilling at Magambazi is contingent on results from the ongoing geological model review and continued favorable assay results, and that drill testing of deep targets is continuing.

Highlights

* 5.37 grams per tonne (g/t) of gold   over 43.4 meters (m)

* 9.37 g/t of gold over 19.6m

* 1.56 g/t of gold over 19.0m

Canaco Resources President and CEO Andrew Lee Smith said “We are embarking on the most ambitious growth program in the Company’s history.

As we advance the Magambazi discovery area toward an initial resource estimate and PEA this year, the Company is transforming from grass roots exploration into advanced exploration and development…We have the financial strength to advance the project for long-term value creation.”

TD Securities Daniel Earle: “The most important takeaway, in our view, was that the timing of key milestones are unchanged – the initial resource remains on schedule for completion by the end of Q1/12 and the PEA is on track for release by the end of Q3/12.”

The firm share added  one per cent and rose to US$1.60 after announcing the results from 16 new drill holes at the Magambazi gold project in Tanzania.

The company said priority infill and extension drilling has been completed at Magambazi and the initial mineral resource estimate is on track for completion by the end of this year's first quarter. 

Additional drilling at Magambazi is contingent on results from ongoing geological model review and continued favourable assay results.

Source:International Business Times addition info by community.nasdaq.com

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