Global turmoil is at a heightened level that has not been witnessed in quite some time. The conflict in Egypt was quickly coupled with Moammar Gadhafi’s violent actions in Libya which sent the oil industry scrambling. The absolute catastrophe in Japan as a result of several earthquakes and a tsunami has left thousands dead and millions without drinking water, electricity or heat while fear of nuclear radiation poisoning continues to grow.
All of this disarray and damage has certainly taken its toll on the stock market with investors apparently not knowing which way to turn as even gold, generally regarded as the safest of investment havens, has seen its price per ounce take a dive today after Japanese markets plummeted by more than 11% in yesterday’s trading.
If history holds true, which it probably will, investors will be flocking in droves back to gold and driving the price back in excess of $1,400 U.S. in the near future as the global carnage continues to be sorted.
Hidden behind the headlines bearing primarily negative news, Vancouver, British Columbia-based junior miner, Gold Canyon Resources, Inc. (TSX-Venture:GCU) (Pink Sheets:GDCRF) announced a significant gold find at its 100%-controlled Springpole Gold Project in Ontario.
Today’s report detailed assay results for two new drill holes from its Winter 2011 Diamond Drill Program on the property located 110 kilometres northeast of the Red Lake Mining Camp, Ontario.
Gold Canyon continues to drill expeditiously throughout the cold winter conditions on the project which presently has three diamond drills operating to drill infill and step-out holes. Presently, 5,551 metres of drilling in 22 holes have been completed since January 10, with weather-permitting intentions of continuing the winter 2011 Diamond Drill Program until the end of March.
These latest reports confirm high-grade gold in hole SP11-033, but more significantly, expand the magnitude of the finding with a very long intercept in hole SP11-040 in the Portage Zone as results showed 100.5 metres at 7.23 grams per tonne gold, including 28.5 metres at 19.73 grams per tonne gold in SP11-040, a vertical infill hole testing the mid-section of the Zone.
Gold Canyon is well-positioned in the drilling as a fourth diamond drill rig with capacity to drill HQ core to 1,000 metres has now also been placed onsite. The on shore rig is slated to begin testing the down-dip continuation of the Portage Zone to depths of up to 700 vertical metres below surface.
This phase of the drill program is planned to begin operating during break-up with helicopter support. The Company is planning to use new information from the drilling programs to revise the resource estimate for the deposit sometime in the second half of 2011.
If, as the old saying goes, "success is where preparation and opportunity meet," Gold Canyon appears to have the prerequisites falling into place. The Company is aggressively maintaining its drilling programs and the large, unexpected finding increases the upside potential of the project.
Even at a time when gold prices have experienced a slide and the resource-heavy Canadian markets are experiencing a substantial pullback, shares of V.GCU have managed to hold steady and now surge upward again on increased volume to all-time highs on today’s news. Investors are encouraged to perform their due diligence.
