Blue Dog drilling comes up short

A recently completed 21-hole drilling program on the Blue Dog property returned disappointing results for owner Gold Canyon Resources (VSE).

Previous work on the property, which is located in Washington Cty., Idaho, outlined preliminary reserves totalling three million tons grading about 0.05 oz. gold per ton.

The recent drilling concentrated on two separate areas, the “Blue Dog” to the south and southwest of the reserve area, and the “Monroe Creek” about 13,000 ft. to the northeast.

Fourteen holes were drilled in the Blue Dog area to test a number of targets. The two best holes intersected 70 ft. grading 0.027 oz. and 40 ft. of 0.029 oz. The remaining holes typically cut five feet grading about 600 parts per billion gold.

Seven holes were drilled on the Monroe Creek target with the best two intersecting five feet grading about 0.02 oz.

The property is managed by a unit of Noranda (TSE), which has the right to purchase sufficient shares in Gold Canyon to bring its holding up to 60% of the company’s issued shares.