Canaco ResourcesCanaco rises 26% as it extends gold trend at Handeni project in Tanzania and makes new discoveries
Tuesday, September 14, 2010
Canaco Resources (TSX V: CAN) shares soared 26% on Tuesday, as the company has extended the gold trend on its Handeni Gold project in Tanzania to 15 kilometres, and discovered new gold mineralization on the property as a result of Canaco's regional exploration program on the site.
Over the past month, the regional program included over 3000 metres of reverse circulation drilling, approximately 10,000 metres of reconnaissance Rotary Air Blast (RAB) drilling, a detailed airborne survey, detailed mapping of the key target areas defined to date, and geochemical interpretation.
Early results have already identified new gold targets and upgraded the potential of previously identified zones, the company said.
Recent soil sampling defined a six kilometre extension of the Majiri-Semwaliko-Kwadijava (MSK) Gold Trend, located 2.5 kilometres west of the Magambazi gold discovery, which confirms the presence of gold in soils over a continuous strike length of 12 kilometres, according to Canaco.
The Handeni Gold trend is now recognized as consisting of two, parallel gold trends with a combined strike length of over 15 kilometres.
Moreover, early results from shallow RAB drilling completed north of Magambazi at Bahati, west of Magambazi and along the Kwadijava-Semwaliko Trend, and at Tajiri, west of Majiri, have identified new gold mineralization west of Magambazi Hill in three holes over a width of 120 metres.
Follow-up RC drilling is currently being planned to determine the size and continuity of this new mineralized zone.
Further, mapping on the western flank of Magambazi Hill has defined an additional target associated with a linear gold soil anomaly, for which RAB results are still pending.
Initial results at the Kwadijava South prospect have also indicated the presence of ore-grade gold mineralization over significant widths.
The Kwadijava South zone has been traced over a strike length of 3.2 kilometres and is defined by current and historic bedrock and alluvial workings and strongly anomalous gold values in soil.
The company is currently examining its options to advance the exploration of this new gold target, it said.
"Initial results from the regional exploration program are highly significant and highlight the enormous potential Canaco has along the Handeni Gold Trend," said CEO Andrew Lee Smith.
"Regional exploration on the 100% Canaco owned Kilindi licence is at an early stage, and the recent discovery at Kwadijava South and significant new target zones identified during regional exploration work, validates the trend as having the potential to host other Magambazi-type gold deposits."
The company was up 23.5% five minutes before market close on Tuesday, trading at $3.52 on the TSX
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