Canaco jumps on Handeni potential

Vancouver – Early results from a regional exploration program around Canaco Resources‘ (CAN-V) Magambazi gold discovery in Tanzania have sent its shares soaring.

The company has identified new parallel trends of gold mineralization, a new mineralized zone 5 km west-northwest of Magambazi and reports successful exploratory drilling. Canaco is now interpreting the Handeni trend as two parallel gold trends with a combined strike length of over 15 km.

News of the positive results sent Canaco’s share price up 88¢ or 31.3% on two days of trading to close at $3.69. The company had already made strong gains in recent months, having traded at 40¢ in April and as low as 7¢ a year ago.

Canaco has recently conducted exploration on its 100%-owned Handeni gold project through 3 km of reverse circulation drilling, 10 km of rotary air blast (RAB) drilling, a detailed airborne survey, detailed mapping and geochemical interpretation.

Significantly, soil sampling on the Majiri-Semwaliko-Kwadijava gold trend, 2.5 km west of Magambazi, has defined a 6-km extension of the trend. The results have established gold-in-soils over a continuous strike length of 12 km.

Meanwhile, the company reports that initial drilling on the Kwadijava South prospect has indicated “ore-grade gold mineralization over significant widths”, though drill results were not released. The Kwadijava target has seen artisanal work on the sulphidic quartz veins in amphibolite host rock and so far has been traced over a 3.2-km strike length.

Canaco has conducted RAB drilling to the north and west of Magambazi as well as other targets, with early results showing new gold mineralization west of Magambazi Hill in 3 holes over a width of 120 metres. The company has yet to release detailed results from the RAB drilling, with less than half assayed, but plans to follow up with RC drilling to better determine the size and continuity of the new zone.

The company is awaiting results from RAB drilling on the Magambazi West target, but mapping has identified a linear gold soil anomaly in the area. The target, on the western flank of the Magambazi Hill, has seen artisanal workings over a 1.2-km strike length along an altered amphibolite contact.

Company CEO Andrew Lee Smith stated that the initial results are “highly significant and highlight the enormous potential Canaco has along the Handeni Gold Trend.”