Another long intercept for Gold Canyon

Gold Canyon Resources (GCU-V) latest results continue to add to the recent momentum the company has generated around its Springpole gold project in the Red Lake district of Ontario.

The results were highlighted a hole returning 225 meters grading 1.48 grams gold including 47 meters grading 3.47 grams gold.

The market signaled its approval by sending its shares up 5% to $1.74 midday in Toronto on Nov. 23. Such upward movement continues the torrid pace Gold Canyon shares have been on since early August of this year when they were trading in the 25¢ range.

“Hole SP10-024 helps demonstrate uniform widths of mineralization in the southeast part of the Portage Zone,” Gold Canyon’s technical advisor, Quinton Hennigh, said in a statement.

The company estimates the true width of the Portage zone- where the hole was drilled – to be roughly 140 meters;

The latest hole twinned a previous hole that hit 223 meters at 1.45 grams per tonne gold and is one of the two southeast-most holes drilled across the Portage zone.

The company says mineralization in the zone consists of intensely potassic altered trachytic porphyry cut by abundant calcite-quartz- pyrite-gold veinlets.

Gold Canyon is experiencing some issues with the rock, however, as at deeper levels it is badly broken, which doesn’t allow for core recovery. This occurred at depths below the reported intercept of the latest hole.

“Although we have experienced poor or no core recovery in places due to the soft and broken nature of the mineralization, we have seen far better recoveries drilling large diameter HQ core and drilling slowly,” Hennigh said. “Although this rock requires patient drilling, we feel that the upside is it will have a very low work factor when it comes time to look at milling.”

Results from the remaining six holes from this summer’s drill program are due back from the lab by mid-December. In total Gold Canyon has drilled 10,300 metres of diamond core for the year 2010.

It plans to move on to another drill program, funded by its recent $6 million equity raise, and should have a revised resource estimate out by next April.