Gold Canyon Resources (GCU), released excellent results today that are certain to propel this micro cap Red Lake Gold District explorer to new heights this year as they kicked off their 2010 drill campaign to move the Springpole deposit towards prefeasibility and a new resource evaluation.
I first put GCU on the watchlist at .25 when they first announced results for the Springpole winter drilling program of 64 meters grading 3.3 g/t of gold. It spiked initially off the great result, then faded as GCU announced they didn't get to drill as much as they would have liked, drilling only 6 holes in the winter and needed to wait for the summer program to continue to drill and evaluate the resource. GCU has been languishing in the .20 range for the last 4 months since waiting for this project to get going in earnest. Well today the fortunes of GCU seem to be turning around announcing results from the first holes of the summer program at Springpole which are certain to get the mining community's attention.
Hole #007 returned...
- 217 meters grading 1.57 g/t gold
- a total of 340 gram meters rating!!!
Hole #008 returned...
- 123 meters grading 1.45 g/t gold and 59 meters grading .98 g/t gold
- a total of 236 gram meter rating
By far the best holes of the project...!!! with hole best #002 of the winter program returning a 211 rating.
Both holes demonstrated large widths and economical grades of gold which were drilled 550 meters apart. Mineralization is similar within the 2 holes and if these grades and widths can be demonstarted throughout the gold zone GCU, will add significant ounces to the resource.
With the deposit being open along strike to the south at 600 meters and at depth, with depths ranging from 220 meters deep in the north to 320 meters in the south and widths ranging from 45 meters to 150m, and with these 2 holes demonstrating large widths at both ends of the project meaning average width is closer to 150 meters than 45 the potential of Springpole starts to become exciting with a 15Mt to 30Mt project at grades between 1 to 3 g/t and growing being open along strike and at depth!
If you don't have a Red Lake Explorer, GCU might be the stock to own, especially with an aggressive ongoing drill program designed to added reserves as they push Springpole towards a new resource evaluation and prefeasibility in 2011. Springpole could easily be in excess of 1 Million ounces.
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