Mon Mar 28, 2011 11:17am GMT March 28 (Reuters) - Canada's Canaco Resources Inc said drilling at its fully-owned Handeni gold project in Tanzania has shown there are gold deposits close to the surface. The Africa-focused mineral exploration company said it found near-surface gold mineralization over a 240 metre strike length while drilling at Kwadijava area in the Handeni region. The Handeni gold district in eastern Tanzania contains numerous gold discoveries over several hundred kilometres. "These results give us confidence that the robust mineralization at Magambazi is also present at Kwadijava," Chief Executive Andrew Lee Smith said in a statement. The Kwadijava area is 6.25 kilometres northwest of Magambazi. The company said the successful drilling at Kwadijava shows there could be satellite bodies of gold mineralization in the area surrounding Magambazi. Shares of the Vancouver-based company, whose key projects are in Tanzania and Ethiopia, closed at C$5.41 on Friday on the Toronto Venture Exchange.