Canaco follows dispute resolution with high grades

Vancouver – With licensing issues seemly behind it, Canaco Resources (CAN-V) is back to pulling high-grade intercepts from its Handeni gold project in Tanzania.

The latest drill results included hole 84 that hit 13.4 metres grading 13.54 grams gold per tonne from 269 metres depth, with a 6-metre stretch carrying 29.4 grams gold; and hole 88 that returned 15 metres grading 4.19 grams gold and then 11.2 metres carrying 4.03 grams gold.

Only days before, the company announced that hole 96 cut 48.6 metres averaging 14.81 grams gold from 141 metres downhole, including 16.8 metres grading 41.51 grams gold.

These and other recent results came from an infill program Canaco is conducting to better define the high-grade shoot component of the Magambazi Main Lode. So far drilling has hit over 1-gram-gold in over 90% of holes. The company also continues to explore for down dip and southward extensions of mineralization.

The other big recent news for Canaco is the positive ruling on its dispute with Sonora Gold & Silver (SOC-V) over a sliver of a licence on Canaco’s 196-sq.-km Kilindi prospecting license. The ruling by the Commissioner for Minerals in Tanzania stated that the 0.07-sq-km licence, which Sonora had optioned into, will now only be open for small-scale local mining.

The Commissioner stated he would “ensure that the Order is implemented in the interest of the Government of the United Republic of Tanzania to develop the Handeni – Kilindi goldfields into large-scale mining investments in the area.”

The company is continuing with exploratory reverse circulation drilling elsewhere on its claims, with testing planned for several targets west of Magambazi. The company is also bringing in a third diamond drill to accelerate definition drilling.  

Since the favourable licensing ruling on December 3, Canaco’s share price has climbed $1.49 on five days of trading to hit $6.05, a new 52-week high. The company has a 52-week low of 36¢ and 168 million shares outstanding.