UPDATE 1-Cangold mulls restarting, buying gold projects; shrs up

* To buy advanced stage gold project by early 2011

* To restart exploration at gold property in Canada

* Sees significant potential in Peru

* Stock up 22 percent

Dec 13 (BestGrowthStock) – Cangold Ltd (CLD.V: ) said it is looking
to renew exploration at a gold project in Canada and will buy
an advanced gold project by early next year, sending the junior
explorer’s shares up 22 percent.

The Vancouver-based company, which owns the Plomo gold
project in Mexico, said it turned its attention to buying
advanced gold projects because of difficulties in funding early
stage gold projects in Mexico since 2008.

This year, deals for two targeted projects fell through
after the owners backed out because of rising gold prices, the
company said in a statement without identifying the parties.

Cangold is also incorporating a unit in Peru as its
management believes that there is significant potential there.

The company is mulling restarting exploration at the Argosy
project in Onatario’s Red Lake mining division, which was
closed in 1952 after producing 101,875 ounces of gold.

The Argosy mine was only developed to a depth of 900 feet,
but drilling programs in 2002 and 2003 confirmed the extension
of gold mineralization below those depths, according to the
company’s website.

Cangold said there could be a much larger gold deposit at
the project based on Gold Canyon Resources’ (GCU.V: ) exploration
success on a property 7 kilometres south of the Argosy
property.

The company said it is also considering the acquisition of
more ground in the Birch Lake Greenstone belt, which houses
both the Argosy property and Gold Canyon’s Springpole Project.

While Gold Canyon’s shares rose 4 percent last Thursday
when it announced the drilling success, Cangold’s stock soared
22 percent. Both stocks gave up those gains on Friday.

Cangold’s shares were trading up 22 percent, or 10 Canadian
cents, at C$0.055 in Monday afternoon on the Toronto Venture
Exchange.

Gold Canyon’s shares, which have gone up 11 times so far
this year on a string of successes at its project, were down 4
percent at C$2.17 in afternoon trade on the venture exchange.
(Reporting by Savio D’Souza in Bangalore; Editing by Joyjeet
Das)

UPDATE 1-Cangold mulls restarting, buying gold projects; shrs up