Canaco and realityI have been following the blog posts on this site for months and have finally decided to add my own buck and eighty-seven cents...
Canaco will be a world class deposit. I believe we can see 10M+ ounces of Gold by the time it is all drilled out, which I don't believe we will see b/c it will be taken out long before that. Canaco did get ahead of itself when it passed $6, but $1.87 is cheap, and does not make sense.
I understand the market is weak, but risk capital has left the junior space, but I am surprised it has broken down this much. I believe the company has hit some speed bumps, but I believe many of those issues where out of managements control. I do believe in this management and I like there aggressive drill program, and there ability to delivery a resource estimate by Q1/2012. I am guessing the initial resource estimate will come in around 2.5-3M ounces, which I think is what the market is expecting.
Conclusion: I am continuing to buy!
MLD