Canaco Resources (CAN.TSXV) announced details of its 2011/2012 expanded and accelerated exploration activities at its Handeni project in eastern Tanzania. A total of 200,000 meters of drilling is planned for completion at Handeni by the end of June 2012.
* Canaco plans to add up to three additional diamond drill rigs at Magambazi for infill drilling and regional target follow-up.
* The entire one-kilometer strike length of Magambazi will be drill-tested to 20 meter spacing with approximately 500 additional holes totaling 95,000m by the end of June 2012
* Management has proposed a budget of $41 million to the Board for the 12-month period ending June 30, 2012, including $35 million for exploration at Handeni.
Andrew Lee Smith, President and CEO:
“With the plans outlined here, we are now embarking on the most ambitious drill program in the Company’s history. This work is expected to allow us to rapidly advance Handeni into development over the next 12 months, with an initial resource estimate and preliminary economic analysis planned for 2012.”
Daniel Earle, TD Securities:
“We welcome the news as the company is finally planning an exploration program that reflects the scale of the opportunity at Handeni in our view.”