Canaco Resources (CAN.TSXV) announced that it has agreed to purchase nine additional prospecting licenses in Tanzania, comprising approximately 1,200 square kilometers. The properties are strategically located in the Handeni region of eastern Tanzania, the locale where Canaco has discovered a new gold district. With this acquisition, Canaco’s land holdings in the Handeni region now total approximately 1,300 square kilometers.
Andrew Lee Smith, President and CEO, Canaco Resources:
“These acquisitions build on our strategy to establish and maintain a dominant land position in the Handeni region, which we believe hosts potential to become an important new gold district. The new properties are all located in areas with known prospective geology and the presence of artisanal gold workings.”
* Consideration for these properties consisted of cash and the issuance of 70,000 common shares.
* Canaco discovered the Handeni project in 2009 and since then has reported results from 125 holes.
* The company presently has five rigs drilling on the project and intends to publish an initial resource estimate by the end of 2011.
Daniel Earle, TD Newcrest:
“We understand that the property acquisitions were made on the basis of the company’s proprietary geological model – where the company is looking for discrete structural windows within the preferred host rocks.”