Canaco Resources Inc. (CAN.TO) reported a disappointing resource estimate for its Handeni project in Tanzania, with both the resource of 21.9 million and grade of 1.44 grams per tonne of gold falling short of Canaccord Genuity analyst Nicholas Campbell's expectations, the Globe & Mail reports.
A preliminary economic assessment should be completed in the second half of this year, and "based on the initial resource estimate, we believe that the economics of the Handeni project are likely to be challenging," he said.
Campbell axed his price target to 65 cents from $3.25 but maintained a "speculated buy" rating.