RE: Excerpt from Gold Report Interview with Yeah, as I said here before, Dr. Paul Zweng is one of the sharpest knives in the drawer. As for that other guy, you have to wonder about motivations considering the complaint, of which I wasn't aware (thanks for posting), and the sudden departure from this venue. He also fails to mention that GCU's fall from grace coincides with just about every other junior in this ugly and inexplicable sell-off since Feb. And, as for any profesional being underwhelmed by the RE, more reputable folks like Resource World were saying in a positive report back in Nov. 2011 that Gold Canyon was likely put out a resource estimate that would increase the number of ounces by a factor of 10 from the old 2006 RE, which stood at 243,000oz. (7,100 oz gold measured; 38,400 oz gold indicated; and 197,100 oz gold inferred). Doesn't take a calculator to get to about 2.5 mil oz as their expectation for this first report, which, if you read the below from Rescource World News, shows they obviously thought would be a good number.
"Gold Canyon Resources is another company that is working to establish a large tonnage gold deposit, in the Red Lake mining camp of Ontario. Gold Canyon announced further exploration results in its ongoing drill program at the wholly owned Springpole project. Once again the company was able to report very good gold numbers across intervals of several hundred meters. This was highlighted by a higher grade section of 129 meters core length grading 3.3 grams of gold per tonne, an exceptional interval for this type of deposit that will contribute to increasing the total resource and improving the economic potential for the project. A compliant resource estimate for Springpole was presented in 2006 that documented a relatively modest gold deposit area that has since been enhanced by recent exploration drilling such that it is likely the total gold resource may increase by a multiple of ten when an updated estimate is completed in 2012."
And little ol' me, just an ill-informed fool living in a leaky trailer among the dust and tumbleweed of greater Winnemucca, said on this board that anyone who expected 5 million oz in that report was smoking something based on the math alone. Wish I had time to go back and find my original post, but I said that credible analysts were estimating 7 mil oz. after completion of the planned 50,000 meters of drilling up to September 2012. Drilling to be included in this latest resource estimate would include (with the historical) 39,000 meters of drilling. If you were going to get 5 mil oz out that you would building ounces at an average rate of 128,000 oz. per 1000 meters of drilling (5mil devided by 39K). Now, add the drilling from the resource date to the analysts estimate: 50,000 x 128,000 = 6.4 mil oz. So how could you expect 5 mil oz in this first report, unless the analysts expected 11 or 12 mil oz. 5mil for 39K meters of drilling + 6.4 mil for 50K meters of drilling). Doesn't come close to adding up. The 4mil (including silver credit) far exceeded Resource World's prediction, and matched or exceeded the analysts estimate of 7 mil. by the end of this phase of drilling [4 mil for first estimate averaging 100,000oz per 1,000 meters drilling so add 5mil (100,000 times 50,000 meters) for phase two and you have 9mi. oz]. So anyone who was "underwhelmed" by the resource in Feb was not paying attention and should sell newsletters about tech stocks or graphite, IMHO.