Gold Canyon's Springpole project +2M oz's and Counting...

Looks like Gold Canyon is well on their way to +2 million oz's of gold at Springpole Lake, in the Red Lake Mining Camp. Gold Canyon has defined close to 250,000 oz's measured, indicated and inferred categories, but that is only for a small area comprising of the Camp and Main Zones. What is exciting and will add at least a million oz's to the next resource calculation is the Portage and Eastern Zones that have been drilled in the highly successful winter and summer drill programs of 2010.

The portage zone is a massive low grade zone that extends under Springpole Lake for what could be another 1,000 meters beyond the currently known southern limit of the deposit which is open to the south and at depth. GCU has defined 600 meters of the Portage Zone and the last holes will add another 700 meters to the strike of current drilling. Which is the strike length that past operators used to estimate the Portage Zone. They are following alkaline porphyry rocks that suggest the Portage Zone could be at least 2km in length.

The Portage Zone has been the focus of drilling in the past with estimates ranging from 23.2M to 38M tonnes at a grade between 1 - 1.1 g/t gold. Which puts historical estimates of contained oz's between 800,000 - 1.23M oz's of gold in the Portage zone. All estimates were estimated over a 700 -800meter strike and depth of 160 meters. Gold Canyon has had great success with both increasing the grade of the Portage Zone with results averaging 1.53 g/t over the current drill program and extending the deposit to a depth of 220 meters at the north end to 320 meters at the south where the deposit is open. The depth of 220 meters represents a 37.5% increase at the north end of the deposit and a 100% increase at the south end when compared to the depth of the historical estimates. Not to say that estimates will increase that much as more drilling would needed to define the depth of the deposit, but if they estimate just another 40 meters with a better degree of certainty to just the 200m level then a 25% increase in the depth would represent 25% increase past estimates to 1M - 1.56M oz's just for the Portage Zone. Even before thinking about an increase in grade with depth which is what drill results have been pointing to.

GCU is also currently drilling the Eastern Extension which in the past was estimated between 100k and 150k oz's. Add all of these resources together and GCU could come out with a resource estimate next spring of 1.4M to 2M oz's of gold with potential to add more as they follow the alkaline porphyry rocks underneath Springpole Lake.

Considering that the grade gets better at depth there is a good chance that Gold Canyon will estimate to a much lower depth resulting in bringing the overall grade of the project up as well. Add to that to the fact that silver assays from one hole indicate that there could be good possibility of a .1 to .2 increase in au equivalent grade from silver if the rest of the holes return similar results.

Gold Canyon looks like it will eventually be a +3M oz deposit in Red Lake. There is still a lot of drilling and defining to do, but the Portage Zone is turning at to be a monster and don't be surprised when GCU initiates a new resource with with close to 2M oz's of gold.

Look at the following map... The Portage Zone alkaline porphyry rocks start where the Lake begins and extends south at least 2km. It probably extends further but airborne magnetics where not flown over the west portion of the property due to poor weather conditions suggesting that the trend could extend much further.

Read original post on GCU here...

http://westernrookie.blogspot.com/2010/08/gcu-makes-significant-discovery-in-red.html

Meritus Minerals Appoints Ex Teck Executive To Special Advisory Board

I just want to highlight another recent winner that has a very prospective gold exploration property in Mongolia, Meritus Minerals MER.V. I posted about MER on September .20 when they released excellent high grade results from the first 3 holes at their Gutain Davaa property in Mongolia. Since then has traded between .22 and .25 cents giving you an excellent opportunity to get in. 10 days later you are up 50% :)

It seems that a lot of exploration companies I follow are scoring big with some big time execs. Earlier this week Mr. Harvey teamed up with Harte Gold Corp for a very good reason as they are going to aggressively explore the Sugar Zone property this year to see if it is indeed the birth of a new Hemlo style gold camp. Yesterday MER scored just as big appointing 21 year Teck exec Ken Thorsen to a Special Advisory Board. This man was responsible for building Teck! Well, not single handedly, but he ran exploration for Teck in Eastern Canada for 14 years and then 7 years out on the west coast as a senior exec in exploration with a 2 year spell as President. It all starts with exploration and if you don't have a good exploration team, then you will never build a mining company. Exploration is responsible for identifying early stage grass roots projects that eventually become company makers. It is how almost every mining good company is built.

Score a huge win for Meritus being able to appoint Ken Thorsen as Senior Technical Advisor to their newly established Advisory Board. Obviously the market approved in a sort of delayed reaction like Harte Gold Corp SP reaction and sent the stock to break out to a year high today and close a penny off that high at .34.

The volume could be a group that follows Ken Thorsen or it could be related to a leak of good news and more results going forward. Either way, Meritus' Gutain Davaa property in Mongolia just got a huge vote of confidence attracting such a big name as Ken Thorsen.

The first 3 holes drilled on the project all returned substantial intervals of gold mineralization

• Hole 1 returned 7.3 meters grading 4.39 g/t au
• Hole 2 returned 28.6 meters grading 8.78 g/t au
• and 9.80 meters grading 4.06 au
• Hole 3 returned 10.70 meters grading 8.05 g/t au

This is an excellent start to the drill campaign. In addition to these excellent drill results they announced they would adding a second rig to the property to complete the initial drill program by mid October.

Currently Meritus is awaiting assays from the lab from 6 more holes with 20 more holes planned to be drilled on the project by mid October.

They have also discovered a vein called the Ninja vein that is only partly exposed that they have traced for 25m with samples returning 113.4 g/t au, 122 g/t au, and 167 g/t au. All samples had widths between 0.5 and 1.39 meters.

See my original write up on September 20th...

http://westernrookie.blogspot.com/2010/09/mongolian-explorer-hits-bonanza-grades.html

Read the news of September 20th...

http://www.marketwatch.com/story/meritus-drills-286-meters-of-878-grams-of-gold-per-tonne-at-gutain-davaa-mongolia-audio-enhanced-2010-09-20?pagenumber=1

Harte Gold Rumor... The Next Hemlo Gold Mines?

Let me introduce you to my latest 100% gainer in my portfolio... Harte Gold HRT.V. So why am I talking about a stock that that has already gone 100% peaked at .74 and is now on the downswing to close at .61?

B/C of the interest that this company is generating and the fact that some are talking that Harte Gold is going to be the next Hemlo!!! At $87M market cap... you are paying over $200 per ounce in the ground including inferred... but if its the next Hemlo, its still very much a cheap stock!

Harte was added to my portfolio at .265 so I have been getting pretty familiar with it for the last 6 weeks as gold exploration seem to be gearing up in Ontario in a big way. After Creso announced their discovery I quickly went about looking for more gold explorers that were still early and had a great chance of discovery success. One of the companies that jumped out at me was Harte Gold. No, its not in the Shining Tree Mining Camp, but they are near the Holloway Holt Mine in the Destor-Porcupine fault system and also have a very prospective property that is starting to generate a lot of interest called the Sugar Zone Property near Hemlo.

The Sugar Zone is located 60 km east of the Hemlo Gold Camp and already has 302,000oz's au indicated @ 8.41 g/t and another 95,000 oz's inferred grading 7.13 g/t au. This was just recently announced which is a significant upgrade from 284,000 oz's inferred at 9.75 g/t au. What is exciting about this project is the that there is widespread gold all over the property with grab samples up to 82 g/t have been assayed. There is huge potential on this property with so many widespread high grade samples and could have much more than the existing resource. HRT also scored big yesterday when they announced that John D. Harvey has joined the board of Directors. If anyone can recognize what may be another emerging gold camp it has gotta be this guy. He served as the President of Hemlo Gold Mines from 1989 to 1992. Mr Harvey prior to that was instrumental in Noranda's discovery being VP of Mattagami Lake Mines which merged with Noranda where he was President of Noranda Exploration from 1982 to 1994. I'd be lying to you if I followed him then or know much about those discoveries b/c I was barely out of diapers by the time Mr. Harvey was President of Noranda, but I can tell you that he has been instrumental in the Noront's James Bay Lowlands discovery 'The Ring of Fire' discovery serving as director of companies I follow such as Noront NOT and Eagle Hill Exploration EAG. If HRT has enticed this guy to come aboard, The Sugar Zone Property must be something special.

Following the right people in the mining industry can make you tons of $$$, you know I like Nelson Baker who was instrumental in bringing to the company and developing the Rainy River Project which is now an emerging gold camp in Western Ontario. Nelson is now running Mineral Mountain MMV who is putting together a portfolio of impressive projects there. John D Harvey is another who you should not ignore.

The Sugar Zone is highly prospective with another recently discovered new gold zone. This new gold zone is what enticed Mr. Harvey to join the board. The gold mineralization is hosted in disseminated sulphides which is a certain type of mineralization that is often associated with large gold deposits such as Hemlo. Assays from the initial grab samples were very promising as well returning 6.53 and 5.97 g/t au from a recently excavated new IP anomaly. Numerous new anomalies have been discovered from a recently completed IP survey that now is lending creedence to the theory that this may indeed be another Hemlo. The company is planning on excavating many of these new IP anomalies before winter and then proceed to drill these targets this winter.

To quote the President of Harte Gold... "We continue to find exciting targets that require follow-up. The discovery of a highly silicified and sulphidic meta sediment east of the Peacock showing confirms the viability of our IP surveys in locating new gold discoveries."

If you look at the new IP map posted you will see the trenches dug where the samples returned 6.53 and 5.97 g/t au and grab samples taken from the Peacock Glacial Boulders one taken last year 2009 returned 87.3 g/t au which intitated exploration in this area this year. Just look at all the glowing red where samples are returning high grade gold on the map below. Very prospective.

Follow the link below to see IP map.

http://media3.marketwire.com/docs/HRT_map.pdf

This is a map to of the property and the extensive high grade gold showings throughout the property.

http://www.hartegold.com/images/map_potential.gif

HRT made a huge run recently, and is now consolidating but is a buy on any weakness. If you can get this at .50 and under, this is a company that changes the exploration risk in your favor and one that will make most of its gains even before results are out.

Harte Gold is a big buy on weakness.