RE: Canaccord cuts Canaco price target to C$3.25 Here's there comments
https://www.investorvillage.com/uploads/57919/files/DL_MorniCof_03302012.pdf
Canaco Resources* (CAN : TSX-V :
.95), Net Change: 0.03, % Change: 3.26%, Volume: 1,035,947
Fails to play its Hand-eni. Canaco continued its slide (down over 80% year-over-year) after announcing that it was delaying the
release of its Magambazi initial resource estimate at its Handeni gold project in Tanzania. The company had originally guided to
a resource estimate by the end of Q1/12 but has now pushed that back to May 15, 2012. Canaco attributes the delay in delivery
to challenges encountered with final assembly of the large volume of project data. Canaco President and CEO, Andrew Lee
Smith, said, "We are confident the mineral resource estimate will be completed by the revised date. The company is well funded
and management is committed to moving the Handeni project through to completion of a preliminary economic assessment by
the end of 2012." The company is carrying out a US$35-40 million 2012 exploration budget, and is currently drilling 10,000
metres per month at Handeni with nine diamond drill rigs and one RC rig. Six of the drill rigs are focused on delineating the
Magambazi resource in preparation for the initial resources estimate. Two diamond drill rigs are focused on the Kuta and the
Magambazi North Extension targets. The remaining diamond drill rig is operating on the Majiri target, where previous surface
sampling and RC drilling indicate a gold anomaly. The RC drill rig is currently operating on the Bahati target to test preliminary
regional targets. The maiden resource estimate will form the basis for the Preliminary Economic Assessment (PEA), expected in
Q3/12. The delayed initial resource has many investors wary, particularly after seeing the markets reaction to disappointing
PEA's this year. We have witnessed several junior mining companies get pummeled after releasing resource estimates and
economic studies that failed to meet analyst expectations. Canaccord Genuity Mining Analyst Nicholas Campbell is expecting
an initial resource of 2.3 million ounces of gold grading 3+ g/t gold.