Canaco Resources had a lot of buzz until recently. Their stock rocketed from under a $1 to $6 from 2008 to 2011. But then it started going down, today at .48 cents! The first hole at their Magambazi project was 59 meters at 4 gpt. That is high grade for a low cost surface mine in Africa, and Tanzania is one of the safer places to mine in Africa. It looked like a potential 5 million oz resource, because their property is on 320,000 acres. They marketed the discovery by saying the strike could be several kilometers in length. It turned out to be a 1 million oz deposit, which they JV’d to a Chinese company, and kept 45% interest.
Then they had another potential mine at their Harvest property in Ethiopia, and for some odd reason spun it off into another company. This was not investor friendly, and between the unspectacular drill results at Magambazi and the Harvest spin off, this stock has languished. They do have a lot more land to explore in Tanzania, but this is a high risk stock. Also, the PEA by their JV partner for Magambazi is currently on hold.