GLD AND GOLD ETFS NEWS – Gold ETFs edged higher Monday, as the SPDR Gold Trust (GLD) rose $0.04 to $121.76. The GLD has traded in a choppy range so far in September and sits lower by 0.2% month-to-date, after gaining 5.7% in August.
As a sector, gold producers and explorers have tracked the trend of the GLD and other physical gold ETFs in 2010, with the Philadelphia Gold and Silver Index (XAU), comprised of the world’s largest gold mining companies, posting a 10.7% gain year-to-date through last Friday versus a 13.4% increase in the GLD.
Some gold stocks have shown more leverage to the rising price of gold and gold ETFs, particularly among small-cap explorers and developers. Canaco Resources (CAN.TSXV), a Canada-based gold explorer whose primary asset is the Handeni gold project in Tanzania, is one company that has combined leverage to the price of the GLD with significant exploration results to drive its share price 430% in 2010.
Today, Canaco Resources announced significant new developments at its 100% owned Handeni Gold Project that included the identification of important new parallel trends of gold mineralization, successful rotary air blast (RAB) drilling on regional targets, and the discovery of a new mineralized zone five kilometers west-northwest of the Magambazi Gold Discovery.
Canaco reported that soil sampling has defined a 6 kilometer extension of the Majiri-Semwaliko-Kwadijava Gold trend 2.5 kilometers west of the Magambazi gold discovery, confirming the presence of gold in soils over a continuous strike length of 12 kilometers. The Handeni Gold trend is now recognized as consisting of two parallel gold trends with a combined strike length over 15 kilometers.
In its announcement, the company stated that RAB drilling has been completed at several targets proximate to the Magambazi zone, and while less than half the assays results have been received by Canaco to-date, the early results have already identified new gold mineralization west of Magambazi Hill over a width of 120 meters. Further drilling is planned to determine the size and continuity of this new mineralized zone.
Canaco also reported that mapping has defined an additional target on the western flank of Magambazi Hill associated with a linear gold soil anomaly. RAB results for The Magambazi West target are pending.
Commenting on the developments, Canaco CEO Andrew Lee Smith said, “Initial results from the regional exploration program are highly significant and highlight the enormous potential Canaco has along the Handeni Gold Trend.”
Canaco shares traded as high at C$3.02 after the announcement before settling back near C$2.90. Other gold ETFS were trading higher as well with the Power Shares DB Gold Fund (DGL) up $0.05 to $44.25, and the iShares COMEX Gold Trust (IAU) up $0.01 to $12.19.