Canaco hits more gold in Tanzania

Vancouver – Ongoing drilling at the Magambazi property in Tanzania continues to intercept gold mineralization for Canaco Resources (CAN-V, CANWF-O).

In late September Canaco announced hitting as much as 53 metres grading 4.32 grams gold per tonne in hole 1 at Magambazi, near the town of Handeni.

Now, with two subsequent batches of drillhole results out, Canaco is proving that the project is no one-hit wonder.

Three holes – 4, 5 and 7 – collared on the same section about 100 metres southeast of hole 1 and drilled to intercept increasingly greater depths of the more or less vertically dipping mineralization show consistent grades of gold in the 3-gram-gold range over 30 to 40 metre intercepts.

Starting 110 metres downhole, hole 4 hit 27 metres grading 2.82 grams gold.

Starting 128 metres downhole, hole 5 hit 41 metres grading 3.32 grams gold.

And starting 156 metres downhole, hole 7 hit 40 metres grading 3.56 grams gold.

Hole 6, collared about 75 metres northwest of hole 1, intercepted 1 metre grading 3.02 grams gold.

Capitalizing on a surging shareprice, which has jumped from 5¢ in mid-September to over 50¢ at some points in October, Canaco recently announced a $4 million financing. On a non-brokered basis Canaco wants to sell 11.5 million units at 35¢ a unit with each unit consisting of a share and a half share purchase warrant exercisable at 45¢ during the first year after closing and 75¢ the year after.

The financing makes a striking comparison to a $2 million private placement Canaco announced in early 2009 and completed in June. Then Canaco sold 40 million units at 5¢ for proceeds of $2 million.

A Chinese strategic partner, SinoTech, purchased 32 million of the units, for a 35% stake of the company in terms of outstanding shares. Two executives related to SinoTech, which according to Canaco is 45%-owned by the Chinese government, joined Canaco’s board of directors as a result.

On news of the drillhole results Canaco’s shareprice dropped 3¢ to close at 43¢. Canaco has about 91 million shares outstanding.

Canaco has an option to acquire a 100% interest on the Magambazi property for US$1.8 million. The Magambazi property is a small portion of Canaco’s otherwise 100%-owned Handeni gold project that covers 200-sq.-km area.

Print

Be the first to comment on "Canaco hits more gold in Tanzania"

Leave a comment

Your email address will not be published.


*


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.

Close