Gunnison Copper Corp V.GCU

GMP Report Rated a Buy - Short term Price of $3.90

[booyaaca]

I told ya guys!!!!!!!!!! To Infinity and Beyonnnnddddd!!!!!!!!!!!


Andrew Mikitchook, P.Eng, CFA Associate: Mark Raguz

[e-mail] [e-mail]

416-943-6651 416-943-6631

January 28, 2011

Prepared by GMP Securities L.P.

See important disclosures on the last page of this report

Gold Canyon Resources7 (GCU-V) BUY

Last: $2.05 Target: $3.90

Share Data

Shares (mm, basic/f.d.) 91.1/118.1

52-week high/low C
.18/C$2.76

Market capitalization (mm) C$186

Enterprise value (mm) C$178

Dividend yield Nil

Total projected return 91%

Summary Metrics

Key Asset

Springpole Gold Property

Location

Red Lake Mining District, Canada

Stage of Development

Resource Delineation

Ownership 100%

Current Mineralized

Inventory (All categories)

mmoz 0

GMP Target

Mineralization

mmoz 4.4

Financial Information

Estimated Treasury C$ mm $7.5

Debt C$ mm
.0

Dilution Cash From

Warrants and Options

C$ mm $15

GCU-V

.00

.50

$1.00

$1.50

$2.00

$2.50

$3.00

Jan-11

Dec-10

Nov-10

Oct-10

Sep-10

Aug-10

Jun-10

May-10

Apr-10

Mar-10

Feb-10

Close Price

0.0

1.0

2.0

3.0

4.0

5.0

6.0

Volume in Millions

Initiating Coverage: A Large Portage

Potential Multi Million Ounce Discovery

The wholly owned Springpole property has, in our opinion, the potential to

graduate from its currently undefined mineral potential into a multi million

ounce resource. Our conservative estimates put the potential at greater

than 4 mm oz.

Rapid Growth

Drilling on the Portage zone has increased the footprint of potential

mineralization in the past year and continued success is expected.

Permitting

Gold Canyon’s valuation should get support from progress by Osisko on

the Hammond Reef permitting and specifically the permitting and draining

of Mitta Lake expected in the summer of 2011.

Valuation

Initiating Coverage with a Buy Rating and $3.90 Target based on our

target mineralization of 4.4mmoz at a valuation of $100/oz. We expect

visibility above this mineralization target by year end 2011 as well as a

potential to justify stronger $/oz valuations as the PEA is delivered.

Andrew Mikitchook, P.Eng, CFA Associate: Mark Raguz

[e-mail] [e-mail]

416-943-6651 416-943-6631

MINERALIZATION TARGET

The Portage mineralization has been intersected over 950m strike trending northwest-southeast – it

remains open in both directions. The true width of mineralization appears to range from 90-150m but

locally has potential to be wider, perhaps up to 250m. The vertical extent is roughly 300m but remains

open at depth. Drilling has been restarted from the ice to deliver closely spaced definition holes in order

to delineate the Portage zone, as well as to step out to the south-east to define the limits of

mineralization.

Exhibit 1: Springpole Drill Traces

Source: Company Reports

Exhibit 2: GMP Mineralization Target

Length

(m)

Width

(m)

Depth

(m)

Density

(t/m3) Tonnes

Grade

(g/t) Contained oz Target

600 150 300 2.45 66,150,000 1.30 2 ,765,000 2.50

800 150 300 2.45 88,200,000 1.30 3 ,686,000 3.30

950 150 300 2.45 104,737,500 1.30 4 ,378,000 3.90

1200 150 300 2.45 132,300,000 1.30 5 ,530,000 4.90

1400 150 300 2.45 154,350,000 1.30 6 ,451,000 5.70

1600 150 300 2.45 176,400,000 1.30 7 ,373,000 6.40

2000 150 300 2.45 220,500,000 1.30 9 ,216,000 8.00

Source: Company Reports, GMP Securities

Andrew Mikitchook, P.Eng, CFA Associate: Mark Raguz

[e-mail] [e-mail]

416-943-6651 416-943-6631

Exhibit 2 above provides some indications of potential mineralization at Springpole. To set our

mineralization target of 4.4mmoz, we are only using the currently defined 950m of strike, 300m of depth

and 150m of width. We are using the upper limit of the apparent thickness range as areas of thicker

mineralization both in the south-east margin and in the north-east will likely bring the average width

towards the upper end of the range. We see significant upside in all three dimensions:

? Strike extent could exceed of 2km: 1km of potential extension to the south-east is indicated by

the recessive nature of the mineralized porphyry and to the northwest at least 3 historic drill

holes have extended the mineralized porphyry below the Main zone mineralization with drilling

returning mineralized porphyry but poor recoveries.

? Width may locally exceed 250m depending on the dip of the mineralization. Two wider areas in

holes 22 and 24 in the southeast and hole 26 in the northwest may range in true thickness

from 150-250+m.

? Depth of the mineralization remains open with no deep holes failing to hit mineralized material.

While historical resources exist at the Main, East Extension and SPROG zones we are not at this point

including them in our analysis as they appear to be significantly smaller than the Portage zone,

potentially not readily amenable to large scale mining and lastly are unlikely to be a driver for the

market in the near-term. We will continue to monitor results to see how these other zones can be

included into potential Portage development scenarios.

Andrew Mikitchook, P.Eng, CFA Associate: Mark Raguz

[e-mail] [e-mail]

416-943-6651 416-943-6631

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