Canaco Resources Inc., Vancouver, B.C. TSX.V : CAN, Frankfurt Stock Exchange : HJ6, is an emerging junior exploration company.
The Company is actively engaged in developing an exploration portfolio that includes:
Gold and Diamond assets in Tanzania and the El Oro gold project in Mexico.
Built on a foundation of experienced management and focused on rapidly advancing exploration projects in Tanzania and Mexico, Canaco is well positioned to build shareholder value over the short term through discovery and resource development.
The Handeni Gold District consists of numerous gold discoveries in an area of eastern Tanzania, highlighted by the Magambazi prospect, which currently hosts an active artisanal gold mining operation. Recent gold discoveries in the Handeni region have occurred on a district scale and have defined an extent of mineralization with a strike length of over 100 km.Read More >>
The Magembe Project is a diamond exploration target located in northern Tanzania.
The property surrounds the Mwadui (Williamson) Diamond Mine, and represents a portion of a buffer zone once surrounding the mine where exploration was prohibited. In 2003 the Mining Act was reformed, and Canaco Resources optioned the property in 2007.Read More >>
Mexico - El Oro property
The 67 sq. km El Oro property. Mexico hosts one of the most significant historic gold-silver producers in Mexico, with past production of over 20 million ounces of gold equivalent over a 400-year period.
The property has excellent road access and is located 120 km northwest of Mexico City.
El Oro property is located in the east-west trending Trans-Mexican volcanic belt in the central part of Mexico. The El Oro property has excellent road access and is located 120 km northwest of Mexico City in the States of Mexico and Michoacán. The El Oro mines are past producers of gold and silver, and the mines hosted the largest known vein systems in the region. Past producing main veins varied between 1 m and 70 m in thickness, were mined over a 1.0 km to 3.5 kmstrike length, and over vertical distances of up to 250 m. Gold-silver mineralization in the El Oro property area is hosted in low sulphidation epithermal quartz and calcite veins. The El Oro property concession does not represent a producing property, and the Company’s current operations consist of an exploratory search for mineable deposits of minerals.
On May 5, 2006, the Company and Candente Resource Corp. (“Candente”) entered into an option agreement to jointly acquire up to a 70% interest in the 67 square kilometer El Oro property.
The El Oro property is being optioned from Minera Luismin SA de CV (“Luismin”), a 100 percent owned subsidiary of Goldcorp Inc. (Goldcorp).
The option agreement, entered into jointly (50/50) by Canaco and Candente, gives the combined companies the right to earn up to a seventy percent (70%) interest in all of the 24 El Oro mining concessions (14,950 hectares), held by Luismin (“El Oro Agreement”).
The terms of the El Oro Agreement are as follows:
1. earn a 50% interest by expending US$5,000,000 on exploration (cumulative exploration expenditure to June 30, 2008 - $801,800 (US$795,843)) and issuing 250,000 common shares (125,000 common shares have been issued by Canaco to date) in each of Canaco and Candente over a three-year period;
2. earn an additional 20% interest by expending an additional US$5,000,000 (US$10,000,000 total for 70% total interest) on exploration and development over an additional two years;
3. Goldcorp retains the right to earn back into a 70% interest by spending US$25,000,000 within four years on additional exploration and development; and
4. Goldcorp has the right to participate in future equity financings by each company, up to the greater of: the current percentage interest held in each company or 10% of the financing.
On September 12, 2008, the terms of the El Oro Agreement were amended whereby a three month extension was granted by Goldcorp. to the date by which the second year exploration expenditures must be met so that the date moves from November 30, 2008 to February 28, 2009 and a six month extension to the date by which the third year exploration expenditures must be met so that the date is moved from November 30, 2010 to May 30, 2011.
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