Canaco finds new gold zone at Handeni

Canaco Resources (CAN-V) has found a new gold zone at its Handeni gold project in Tanzania.

The new zone, Magambazi North, is located 800 metres from the Magambazi target.

Canaco set out to test the largest coincident gold and arsenic soil anomaly found on the property and has found an extensive zone of alteration and gold mineralization that’s similar to Magambazi.

The new mineralization dips gently to the south and the company says it’s located with in a thrust zone that has been traced fro 140 metres along strike to the west and to 200 metres depth.

The company has only received assays for a few holes of the nine-hole 1,325-metre program.

One hole returned 18 metres grading 3.3 grams gold per tonne including 8 metres grading 5.69 grams gold per tonne. Further down in the same hole there was a 3 metre interval grading 3.04 grams gold per tonne.

A second hole returned 3.7 metres grading 2.25 grams gold per tonne.

Canaco plans to do more drilling on the Magambazi target during the first quarter after it finishes up at Magambazi North.

Canaco shares fell 13% today, or 8¢, to 52¢ apiece on a trading volume of 1.8 million shares.