PZ: Gold Canyon Resources Inc. (GCU:TSX.V) is a wonderful story. It is in between a very early-stage company like a Bellhaven and a more advanced explorer like a Goldgroup. Gold Canyon has 90M shares issued and outstanding and is trading at about $3.00. We got in earlier, but even at today's level, I think this is a very interesting company.
Gold Canyon has the Springpole deposit in Red Lake, Ontario, a wonderful jurisdiction in Canada in an area with a long history of mining.
But Springpole is a little different. It is the closest analogy to what
Osisko Mining Corp. (OSK:TSX) has just developed and put into commercial production in the Canadian Malartic deposit to the east. Osisko found that what used to be an underground, narrow-vein mine also contained significantly wide widths of about one gram gold that allowed for a large number of ounces to be mined by an open pit. That is exactly the same situation that is happening now at the Springpole deposit.
I think Springpole is going to have 6–8 Moz. of gold. There are a lot of holes and very little exploration risk. I think it could easily be a double or triple just based on an ounces-in-the-ground analysis.
The management is more of a geologic team. I don't think they are actually going to try to put it in production. I think Gold Canyon Resources is going to be taken out within two years. I think it will put out its NI 43-101 and that will give the majors the comfort that the project has been sufficiently derisked. Given its large size and its Canadian location, particularly in Red Lake, this thing is going to be gone.
