The portage zone is a massive low grade zone that extends under Springpole Lake for what could be another 1,000 meters beyond the currently known southern limit of the deposit which is open to the south and at depth. GCU has defined 600 meters of the Portage Zone and the last holes will add another 700 meters to the strike of current drilling. Which is the strike length that past operators used to estimate the Portage Zone. They are following alkaline porphyry rocks that suggest the Portage Zone could be at least 2km in length.
The Portage Zone has been the focus of drilling in the past with estimates ranging from 23.2M to 38M tonnes at a grade between 1 - 1.1 g/t gold. Which puts historical estimates of contained oz's between 800,000 - 1.23M oz's of gold in the Portage zone. All estimates were estimated over a 700 -800meter strike and depth of 160 meters. Gold Canyon has had great success with both increasing the grade of the Portage Zone with results averaging 1.53 g/t over the current drill program and extending the deposit to a depth of 220 meters at the north end to 320 meters at the south where the deposit is open. The depth of 220 meters represents a 37.5% increase at the north end of the deposit and a 100% increase at the south end when compared to the depth of the historical estimates. Not to say that estimates will increase that much as more drilling would needed to define the depth of the deposit, but if they estimate just another 40 meters with a better degree of certainty to just the 200m level then a 25% increase in the depth would represent 25% increase past estimates to 1M - 1.56M oz's just for the Portage Zone. Even before thinking about an increase in grade with depth which is what drill results have been pointing to.
GCU is also currently drilling the Eastern Extension which in the past was estimated between 100k and 150k oz's. Add all of these resources together and GCU could come out with a resource estimate next spring of 1.4M to 2M oz's of gold with potential to add more as they follow the alkaline porphyry rocks underneath Springpole Lake.
Considering that the grade gets better at depth there is a good chance that Gold Canyon will estimate to a much lower depth resulting in bringing the overall grade of the project up as well. Add to that to the fact that silver assays from one hole indicate that there could be good possibility of a .1 to .2 increase in au equivalent grade from silver if the rest of the holes return similar results.
Gold Canyon looks like it will eventually be a +3M oz deposit in Red Lake. There is still a lot of drilling and defining to do, but the Portage Zone is turning at to be a monster and don't be surprised when GCU initiates a new resource with with close to 2M oz's of gold.
Look at the following map... The Portage Zone alkaline porphyry rocks start where the Lake begins and extends south at least 2km. It probably extends further but airborne magnetics where not flown over the west portion of the property due to poor weather conditions suggesting that the trend could extend much further.
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