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Canadian Gold Resources Ltd T.CAN


Primary Symbol: V.CAN Alternate Symbol(s):  CDNGF

Canadian Gold Resources Ltd., formerly Amseco Exploration Ltd, is a Canada-based gold exploration and development company. The Company is focused on advancing its 100% owned gold properties in the Gaspe Gold Belt of Quebec, Canada. The Company is the owner of the Lac Arsenault Property, the VG Boulder Property, and the Robidoux Property. The Lac Arsenault project is located in the Gaspe Peninsula of Quebec, approximately 25 kilometers (kms) north of Paspebiac and 58 kilometers from Bonaventure, covering a total of 4,118 hectares. The Robidoux project is located in the western Gaspe Peninsula, Quebec, covering 1,940 hectares. The VG Boulder project is located in the Gaspe Peninsula, Quebec and covers 14 km along the prospective Grand Pabos Fault, spanning approximately 5,787 hectares.


TSXV:CAN - Post by User

Comment by bishop13on Jul 13, 2010 5:12pm
886 Views
Post# 17266721

RE: TD $4.00

RE: TD $4.00Excerpt from Daniel Earle's report this am

Canaco Resources Inc.

(CAN-V) C$1.08

Exceptional drill results; reinterpreted geology; revised model

Event

Yesterday, Canaco released additional drill results from the Magambazi and

Magambazi North zones, which together represent the southernmost 1.4 km

of an 11 km long trend of anomalous gold-in-soil geochemistry and artisanal

mining on its Handeni Gold Project (100%) in eastern Tanzania. The results

included an interval of 37m grading 12.5 g/t in Hole 66 from Magambazi,

which we regard as the best intersection reported from it to date.

In the same release, the company announced a reinterpretation of the

geometry of the deposit that in our view dramatically increases its potential

tonnage. The Magambazi and Magambazi North zones are now seen by the

company as separate parallel zones of near-surface gold mineralization – the

Magambazi North lodes being the western limb, and the Magambazi lodes

being the eastern limb, of a single synclinal fold.

The intersection reported in Hole 66 (37m grading 12.5 g/t) is interpreted by

us to occur at the axis of this fold, approximately 200m below surface.

Because, in our view, this setting has not been tested by prior drilling to the

north or south, it is possible that this tenor of mineralization could be present

over the entire 1.4 km strike extent of Magambazi. We would expect future

drilling to target potential strike extensions to this compelling new target.

Impact - POSITIVE

In light of drill results released subsequent to our initiation of coverage on

April 28, including those discussed above, we are increasing our conceptual

resource estimate for the Magambazi deposit to 3.1 million ounces grading

3.4 g/t gold. We increase the scope of our conceptual project model to reflect

the larger forecast resource and now model average production of 288,000

ounces per year at total cash costs of US$261/oz over a 10 year mine life. As

a result, our NAV5% estimate increases to $3.93/share (from $1.61). We

maintain our Speculative BUY recommendation, with a revised target price of

$4.00/share.

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