Canaco Resources (CAN.TSXV) provided an update on the status of its Magambazi project in Tanzania, Africa and on corporate activities. On May 15, 2012, the emerging gold company announced an initial mineral resource estimate on the Magambazi project which included indicated mineral resources of 15.2 million tonnes grading 1.48 grams per tonne gold and containing 721,300 ounces, as well as inferred mineral resources of 6.7 million tonnes grading 1.36 grams per tonne gold and containing 292,400 ounces.
* Based on the resource estimate, Canaco Resources is proceeding with a preliminary economic assessment (PEA) at Magambazi
* The PEA will utilize key information collected to date to evaluate the project’s economic viability
* The PEA is expected to be complete in the fourth quarter of 2012 at a planned cost of approximately $5 million
* Canaco is in a strong financial position, with $95 million cash on hand and no debt
Andrew Lee Smith, President and CEO of Canaco Resources:
“We believe the Magambazi resource represents an opportunity to add value to the Company and we are therefore continuing with the PEA in order to fully understand the economics of the project. The PEA will analyze and estimate capital and operating costs as well as mine design and a preliminary production schedule. This information will allow us to determine next steps for the project.”
“We believe Canaco’s solid cash balance gives the Company a strategic advantage in this market. We have embarked on a comprehensive strategic review of our business and are evaluating a range of acquisition and exploration opportunities to leverage the balance sheet to create value.”
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