Revised Final Environmental Study Report (24 MB) - Gold Canyon ...

Gold Canyon Resources Inc: Final Environmental Study Report Review
March 30, 2013
Note: the Preliminary Economic Assessment does not comment on the $24,450,978
accumulated deficit.
February 6, 2013 – Gold Canyon Comments on Recent Share Price and Trading
Volume Concerns:
“In response to enquiries, Gold Canyon Resources Inc. (TSX VENTURE:GCU)
(PINKSHEETS:GDCRF) ("Gold Canyon" or "the Company") wishes to comment on the
Company's recent share price weakness and higher than normal trading volume,
which over the past several months has raised concerns amongst its investors
(www.goldcanyon.ca - Accessed April 1, 2013).”
“Gold Canyon has cash reserves of more than (Cdn)$10 million, considered to be
sufficient to fund current operations through the short to medium term without the
immediate need to raise more capital. In the circumstances, management believes that
Gold Canyon's current share price significantly undervalues the Company, and with the
support of Gold Canyon's board of directors, is currently examining various initiatives and
strategic options to remedy this situation (www.goldcanyon.ca - Accessed April 1, 2013).”
There is a strong possibility that GCU requires the eastern corridor to build
Springpole property value, improve investor confidence and increase stock price, in
order to afford continued exploration at Springpole.
If this is the case, then the eastern corridor is NOT required to directly facilitate
exploration at Springpole.
In the event that eastern corridor development is approved and GCU stocks continue
to fall, financial hardship will prevail, leaving the company without the financial
means to rehabilitate the eastern corridor. Unless a reclamation bond is secured
prior to GCU commencing eastern corridor development, there is a strong possibility
that tax payers will have to cover the eastern corridor rehabilitation costs: which
will be much more than $10 million.
Recommendation: GCU needs to fully disclose the amount of working capital and
accumulated deficit to Stakeholders, First Nation communities, the public and OMNR prior
to approval for the eastern corridor.
Recommendation: If GCU is working jointly with Domtar on the development of the
eastern corridor, it should be fully disclosed to what extent and how much financial
assistance Domtar will provide for rehabilitation of the eastern corridor.
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