Santa Fe pulls out of Springpole

The Canadian subsidiary of Santa Fe Pacific Gold (GLD-N) has dropped its 50% option on the Springpole Lake gold project near Red Lake, Ont., leaving Gold Canyon Resources (GCU-V) in control.

Santa Fe had been the operator. In a statement, Gold Canyon’s president, Michael Leninson, said he regrets Santa Fe’s decision to pull out but that he “understand[s] the considerations that led to it.”

The statement did not elaborate, but the decision came after the completion of a 16-hole, 20,308-ft. summer drill program at the property.

The Vancouver-based junior has assumed liability for all ongoing costs associated with the project, and the full cost of the summer drilling.

Gold was first found on the 2,608-ha property in 1928, though most initial exploration took place during the 1980s and early 1990s. Work has been focused on the large, low-grade Portage zone, much of which is under Springpole Lake.