Sprott/Cormark ReportI can not attach it, so I am copying and pasting:
Gold Canyon Resources Inc.
(GCU - $1.85, TSX-V)
Recommendation: NOT RATED Target Price: N/A
All figures in C$ unless otherwise noted
Market Data (MM)
Current Price: $1.85
Basic Sh. O/S 88.4 Market Cap. $163.5
FD Sh. O/S 116.9 Float $155.8
Mngt., Dir., Insiders 4.1 EV $157.1
% of Basic 5%
Balance Sheet / Resources (MM)
Cash $6.4 Working Capital $5.6
Total Debt
.0 FYE 11/30
Total Resource, oz 0.24 EV/Total Res. $648/oz
Valuation
N/A
Main Property
Springpole Gold Project Ownership: 100%
Location: Red Lake, Ontario
Stage: Exploration
Deposits: High grade epithermal alkalic intrusive
Resource (M&I + Inf): 1.60MMT @ 4.71 g/T Au (0.24 MMoz)
Management
Akiko Levinson, President, Director: Over 20 years experience
with mining finance and directorships with other public mining
companies. Widow of Michael Levinson, former President and
Chairman.
Ron Schmitz, CFO, Director: Primary administrator of Gold
Canyon with over 20 years experience in financial management of
resource companies. Owner of ASI Accounting Services providing
accounting and administration to public resource companies.
Dr. Quinton Hennigh, Technical Advisor: Recently brought
onboard as a Technical Advisor on the project, Mr. Hennigh has
been the President of Evolving Gold Corporation since 2008 and
its Chief Geologist since May 2007. Dr. Hennigh is an economic
geologist with more than 20 years of exploration experience
Price Chart
Sources: BigCharts, Thompson One, Company Reports
Company Profile
Gold Canyon Resources is a Canadian based junior mining
exploration company with 100% interest in the Springpole Project
in the Red Lake mining district of Ontario. GCU is focused on a
multi-phase exploration program at Springpole envisioning a
large multi-million ounce project with a significant proportion of
the ounces near surface. GCU currently has three diamond drill
rigs at Springpole, and we expect a substantially upgraded 43-
101 statement by mid-2011.
Recent Developments
- On January 11, 2011, Gold Canyon announced that it began
its winter 2011 drill program at Springpole. Three diamond core
rigs will be drilling a planned 10,000m by early April focusing on
infill of the Portage Zone and exploration along strike and on
nearby targets.
- On December 15, 2010, Gold Canyon released assay results
from two holes on the Springpole Gold Project. Results included
353m of 1.17 g/t in the Portage Zone, and 3m of 16.08 g/t from
the Main Zone.
- On December 9, 2010, the Company announced additional
gold intercepts at the Springpole Gold Project. Results included
132m of 2.30 g/t gold, including 42m of 5.28 g/t gold. Another
holes intersected 108m of 1.75 g/t gold. Both holes were testing
the Portage Zone.
- On November 23, 2010, the Company announced results from
hole SP10-024 which intersected 225m of 1.48 g/t gold. This hole
was collared 50m SE from hole SP10-022, confirming the
suggested true width of the Portage Zone is approximately 140m.
- On October 29, 2010, Gold Canyon announced that it closed
the previously announced brokered private placement to sell 6
MM flow through units at a price of $1.00 per FT Unit for gross
proceeds of $6 MM.
Reasons To Watch
Defining A Major Resource. Gold Canyon is expected to
release a new 43-101 resource by mid-2011 which we anticipate
will define between 3–5 MMoz at an average grade of 1.2-1.5 g/t.
Gold Canyon believes that the Main, Camp and Portage deposits
could form one continuous deposit nearly 1.2 km long and open
to the southeast.
Continued Drilling Success. If we assume a resource of 3
MMoz, GCU would be trading at $56/oz. This is likely to
appreciate as the company continues to prove out the resource.
High Quality Exploration Target. We believe the potential size,
grade and valuation of Springpole makes it an attractive
acquisition target in the gold sector, with the mid-2011 resource
as a major catalyst.
Potential Catalysts
?? New drill results from its 10,000m campaign
?? New 43-101 Resource from Springpole – mid-2011
JANUARY 21, 2011 RICHARD GRAY, CFA 416-943-6407
41
Springpole Project Ownership: 100%
Project Commentary:
- The Springpole Project is located approximately 110 km NE of
Red Lake, in NW Ontario. Gold Canyon controls a 100% interest
in approximately 20,000 acres with royalty agreements from 2-
3% NSR, though several of them can be bought down to 1-2%
NSR.
- When Red Lake was discovered in 1925, prospectors came to
the Springpole Lake area, where they discovered visible
outcropping gold on the property.
Springpole Project Map
Source: Gold Canyon Resources
- The property is situated in the north-eastern part of the Birch-
Uchi greenstone belt within the Archean Superior Province. The
property is underlain by a complex sequence of mafic to
intermediate volcanic rocks cut by a complex alkaline feldspar
porphyry.
- Gold Canyon has conducted several drilling campaigns with
original efforts focused on the northern Main zone, and only
recent efforts now looking at the Portage zone (under the lake).
Goldfields discovered this zone in 1989, and conducted a study
on draining the small lake overtop the deposit, but the gold prices
at the time forced it to abandon the project.
Springpole Project Map
Source: Gold Canyon Resources
- Gold Canyon believes the Main, Camp and Portage appear to
form one continuous deposit nearly 1.2 km long and open to the
southeast. SPROG and EE appear to also form one continuous
deposit parallel to Main-Portage, but approximately 0.8km long.
GCU is now confident that these are NOT isolated zones but
part of the same overall ore-forming system
- Presently, the strike length of the northwesterly striking
Portage Zone stands at approximately 950 m. This zone
remains open at depths in excess of 300 m along its entire
length. True widths of the zone generally range from 90 to 150
m, but locally widen to as much as 250 m. The zone remains
open at depth, to the southeast and northwest where it appears
to plunge underneath the Main Zone.
Resource Commentary:
- The latest modeling of the deposit suggests that there are at
least 2 MMoz gold within two zones.
1. The near surface “on shore” of the Main, SPROG, and EE
zones has approximately 0.5 MMoz at grades of 1.5 – 2.0
g/t gold.
2. The near surface “under lake” of the Camp and Portage
zones has approximately 1.5 MMoz also at grades of 1.5 –
2.0 g/t gold.
- There are several critical “gaps” in the drill patterns that need
to be filled to test the resource potential of the above zones. In
particular, more drilling is needed along the Portage and Camp
zones.
- Mineralized zones appear to dip uniformly to the SW at about
70-80o with a tendency to form shoots. East-west cross
structures may localize higher grade shoots.
- Blue-sky upside on this deposit could see a large deposit with
upwards of 5-8 MMoz, with the potential size and grades to
support the capital costs for on site processing of ores.
Drill Locations at Springpole
Source: Gold Canyon Resources
- The winter drill program is in progress with three diamond
core rigs operating. Two holes testing shallow portions of the
Portage Zone have been completed. Cold winter weather has
made conditions favourable for building up ice and making drill
pads on the lake.