ONTARIO – Gold Canyon Resources of Vancouver has completed three years of environmental studies regarding the aquatic habitat at its Springpole gold project 110 km northeast of Red Lake. No prohibitive issues were uncovered, said the company.
Gold Canyon will now meet with Department of Fisheries and Oceans Canada to discuss a fisheries offset agreement. The goal is to identify and create suitable fish habitats to replace those disturbed during mining.
The preliminary economic assessment of the Springpole project that Gold Canyon released last year suggested it would cost US$438 million to develop a project with annual production averaging 217,000 oz of gold and 1.2 million oz of silver. It would have a life of 11 years.
Gold Canyon said in a release that it will proceed with a site-wide economic impact statement, but that the current economic climate does not allow it to move forward with a feasibility study at this time.
The Springpole property is a former gold producer, during the 1920s and 1940s. Gold Canyon obtained its 100% interest in the property in 1996. Indicated resources of 128.2 million tonnes grading 1.07 g/t Au and 5.7 g/t Ag and inferred resources of 25.7 million tonnes grading 0.83 g/t Au and 3.2 g/t Ag have been identified. There may be close to 4.5 million oz of gold and 25 million oz of silver in the resource.
A photo gallery and a corebox 3-D model of Springpole may be viewed at GoldCanyon.ca.