In 2010, China gold production increased for the eleventh straight year as the country held the reigns as the largest gold producing country in the world, producing 345 tons of gold. Australia held the number two slot in 2010, while the U.S. placed third.
South Africa, who held the title as the largest gold producing country for 102 years (1905 – 2007) slipped to fourth and has been seeing a steady decline in gold production and slipped to the number four spot in 2010, producing about 195 tons.
While South Africa’s gold production is slipping, other countries are closing the gap. Tanzania has seen production increase in the last decade and now ranks fourth in Africa regarding gold production after South Africa, Ghana and Mali. Canaco Resources Inc. (TSX-Venture:CAN) is a Vancouver-based mineral explorer with its efforts focused in Africa, holding advanced stage properties in Ethiopia and Tanzania.
The Company’s Harvest project in Tanzania underwent a change as in July 2011 Canaco spun out its 70% interest in the Harvest project in Ethiopia into a new company, Tigray Resources Inc. (TSX-Venture:TIG). Tigray has made a solid climb in value since it began trading at the end of August with shares rising more than 60% to $1.00 on its inaugural trading day and still holding in the area of $1.70 Friday.
While the Ethiopian efforts are being left to Tigray, Canaco’s flagship project is the Handeni project in Tanzania. Gold was only recently discovered in the area in 2003, which generated an influx of miners and the establishment of a mining village at Magambazi, the area where Canaco is primarily directing its exploration efforts.
Friday, Canaco released its latest assay results from diamond drilling at the Magambazi gold discovery at Canaco’s Handeni project. Delineation drilling is ongoing with significant intercepts coming on a regular basis. Friday was no different with drill hole MGZD22 in the Central Contact Lode/Western Lodes intercepting 35 meters grading 6.45 g/t gold.
The Magambazi Main Lode produced results as high as 55.3 metres grading 3.18 g/t gold. Although not to the same width, substantial other finds included cuts of 2.1 metres at 23.67 g/t gold and 2.1 metres at 23.24 g/t gold.
Shares of Canaco have been a trader’s dream with a fair amount of liquidity accompanying large swings over the course of a month or so. Trying to find a bottom recently, the stock price slipped to $1.65 in the opening week of October, but rose as high at $2.14 Friday. Shares closed at $1.96 with 2.6 million shares trading hands.
