Gediminas Jasionis
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Canaco Resources Inc. (CVE:CAN) (PINK:CANWF) Tries to Hang On to the Slipping Price Gain

by Gediminas Jasionis Sep 14, 2011
can_chart.pngCanaco Resources Inc. (CVE:CAN) (PINK:CANWF) traced slightly lower over the last trading session despite still heavy interest from traders that helped the stock propel up on Monday.

The stock struggles to hold the inflated stock price but retained a significant trading volume over Tuesday's trading session. 1 million shares traded were more than twice the daily average turnover of 490 thousand. The stock had gapped up 7.9% on Monday as traders reacted to an update on drilling activities.

Share price has bounced support at its 50-day moving average which is currently at $3.27. The support nearly coincides with another one at $3.25. Furthermore, since the price also broke out of its previous channel the upper limit of it works as support at $3.20. Combine these three with the recent news and you have a pretty bullish picture.

canaco_logo.jpgOn Sep 12 Canaco announced new assay results for the diamond drilling at Magambazi gold discovery on the Handeni project in Tanzania. The drilling still continues with focus on delineation and extension of already discovered mineralization zones. Results are currently available for 21 drill holes.

Key intersections depicted in the report were:
• 9.3 metres of 11.62 g/tonne gold;
• 9.1 metres of 7.62 g/t gold;
• 49 meters grading at 3.92 g/t gold.

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