Canaco Resources hits additional high grade gold 240 meters north of previous drilling

TD Waterhouse analysts recently stated the Canaco Resources’ Handeni Gold Project was one of the most exciting discoveries made in 2009. Shares in the company seem to reflect this too, surging from 40 cents to 70 cents in the just the last few weeks as a second round of drilling gets underway in Tanzania.

Shares in Canaco slipped 5% today, but this appeared to more related to profit taking, rather than any direct reaction to news out today, which confirmed high grade gold over significant widths some 240 meters north of previous drilling.

Highlights released today included 21.7 meters grading 6.95 grams per tonne, including an impressive 9.5 meters grading 12.75 grams per tonne gold in drill hole MGZD0045, while drill hole MGZD0043 cut 21.2 meters grading 4.8 grams per tonne gold, including 11 meters averaging 7.9 grams per tonne gold. Not surprisingly, Canaco Resources said it was “extremely pleased to announce exciting new intercepts”.

The new drill results extended the high grade ‘Magambazi Lodes’ over 440 meters of strike, and remain both along strike to the north, down dip and down plunge. “New lodes have also recently been identified to the west of the main Magambazi Upper and Lower Lodes with intercepts of 34.6m @ 1.36g/t Au (MGZD0040) from 102.0m (including 12.0m @ 2.83g/t Au),” Canaco added.

All three prospect are part of a larger 11 kilometer Handeni Gold Trend