Canaco owns > 1 km sq from Magambazi MinesThe meat in Canaco's sandwich is really only .34 km sq. A lot smaller than the 7.2 hectares that SOC has optioned. The intercepts they have been getting going south are better, and south is probably where the Sonora property is.
Also, of significance is this tidbit under the title mineralization. If Canaco owned everything, why are the local miners still exploiting the ground? You Canaco shareholders have been duped in my opinion.
"Local miners are exploiting gold mineralization within steeply dipping, north-north-westerly trending occurrences of sulphide and quartz veins."
Don't kid yourself, there was many MLs in the area, they couldn't get them all and the smartest guys didn't sell.
The Property
The Handeni Gold Project consists of two contiguous claims totalling 200 km²: Magambazi 0.34 km² and Kilindi 199 km². The district is located adjacent to the town of Handeni. Local roads access workings on all four claims. Local mining related infrastructure is non-existent as a result of the recent emergence of the region's mining potential based on discoveries made since 2003.
Ownership
The Handeni Project is 100% owned by Canaco Resources Inc and covers 196 square kilometres.
The Magambazi property is owned 100% by Magambazi Mines Company Ltd. Canaco has an option agreement to acquire a 100% interest in the Magambazi PMLs subject to cash payments of US$180,000 over two years for the rights to explore and US$1.8 million to acquire 100% interest subject to a 2% NSR.
The Kilindi property is owned 100% by Canaco.
History
Gold was discovered in the area in 2003, spurring a gold rush and intense alluvial, then hard-rock mining which remains ongoing at present. A mining village is established at Magambazi, the principal focus of the exploration effort on the Handeni Project.
The discoveries of gold at Kilindi and Magambazi are indicative of a new and emerging exploration environment capable of hosting primary gold mineralization. Recent graduate level research published by the University of Western Australia (Kabete et al., 2008) show that the highly-endowed Sukumaland Superterrane, the geological host to Tanzania's most significant gold deposits, has been overprinted on its east-southeastern extension by a Proterozoic orogeny adjacent to the Mozambique Belt further east. Newly-recognized gold prospects, exploited on a small scale by artisanal miners, are sited at several locations in this overprinted Archean terrane.
Of particular interest is the well-exposed Magambazi prospect in the Handeni region of the Tanga District. Here, high gold-grade sulphide-bearing quartz veins are enclosed in up to 40m thick alteration zones with lower-grade, sulphide-associated gold ore over an exposed strike of several hundred metres, demonstrating its high economic potential. The host rocks and alteration zones are high-grade gneisses with both silicate and sulphide minerals having granulite textures. This, and the absence of strong foliation, suggests a high-grade metamorphic overprint of an originally lower metamorphic-grade orogenic gold deposit. Magambazi thus demonstrates the potential for discovery of world-class, overprinted, Archaean orogenic gold deposits in non-traditional exploration terranes in Tanzania.