Gold Canyon Resources Inc.
TSX VENTURE : GCU
PINK SHEETS : GDCRF

Gold Canyon Resources Inc.

May 04, 2010 09:00 ET

Gold Canyon Announces Last Two Holes End in Mineralization From Springpole Winter Program

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2010) - Gold Canyon Resources Inc. (TSX VENTURE:GCU)(PINK SHEETS:GDCRF) ("Gold Canyon" or "the Company") is pleased to announce it has received remaining gold assays from its Winter drill program on its 100% controlled Springpole gold project in the Red Lake Mining District in Ontario, Canada.

  • Hole SP10-005 encountered 55.0 meters at 2.21 grams per tonne gold (180.4 feet at 0.065 oz per ton). The hole was drilled on the adjacent section 50m southeast and lies 85 meters east of the previously announced hole SP10-002 (see press release dated April 6, 2010) which encountered 64.0 meters at 3.30 grams per tonne gold (209.9 feet at 0.096 oz per ton). Although this hole terminated in mineralization, it indicates good continuity of the "Portage Zone" in this direction.
  • Hole SP10-006 encountered 37 meters at 1.56 grams per tonne gold (121.4 feet at 0.046 oz per ton gold) within 73 meters at 1.00 grams per tonne gold (239.4 feet at 0.029 oz per ton). This hole is a 200 meters stepout southeast of hole SP10-002 providing further support for good strike continuity of the Portage Zone. In addition, this hole intersected the Portage zone approximately 40 meters deeper than holes SP10-002 and -005 suggesting this zone remains open at depth. Like hole SP10-005, this hole also ended in mineralization.
  • Remaining silver assays are expected back shortly.
  • A Winter 2010 Drill Program Drill Hole Collars and Drill Traces map is available at: http://www.goldcanyon.ca/i/gallery/springpole/maps/SP2010-Winter-Drill-Program-03-May-10.jpg

"Although we are disappointed that we had to terminate holes SP10-005 and -006 in mineralized rock when warm temperatures forced the end of our drill program in March, we are very pleased that both holes intersected stout intervals of porphyry style mineralization along the Portage zone," states Dr. Quinton Hennigh, technical advisor to Gold Canyon. "We are seeing good strike continuity develop along the Portage zone to the southeast of hole SP10-002. These results make us anxious to resume drilling in June, and we have a very good idea where we will pick up the program."

Table Summarizing Assay Results from Holes SP10-001 through SP10-006:

Portage Zone:                  
Hole From (m) To (m) Length (m) Gold (gpt) Silver (gpt) Tellurium (ppm)   Length (ft) Gold (opt) Silver (opt)
Previously reported:                  
SP10-002 113.0 115.0 2.0 1.18 1.50 3.79   6.6 0.034 0.044
  140.0 141.0 1.0 1.60 12.40 10.70   3.3 0.047 0.362
  164.0 168.0 4.0 1.70 10.38 8.40   13.1 0.050 0.303
  180.0 181.0 1.0 1.38 24.70 12.80   3.3 0.040 0.721
  217.0 218.0 1.0 5.00 10.10 20.60   3.3 0.146 0.295
  247.0 311.0 64.0 3.30 14.51 16.59   209.9 0.096 0.424
includes 254.0 263.0 9.0 5.86 18.12 21.56   29.5 0.171 0.529
includes 277.0 284.0 7.0 7.23 27.26 27.86   23.0 0.211 0.796
                     
New results:                  
SP10-005 135.0 142.0 7.0 1.50 - -   23.0 0.044 -
  213.0 268.0 55.0 2.21 - -   180.4 0.065 -
  213.0 218.0 5.0 4.29 - -   16.4 0.125 -
  222.0 223.0 1.0 16.28 - -   3.3 0.475 -
  Hole ends in mineralization              
                     
SP10-006 191.0 193.0 2.0 3.63 - -   6.6 0.106 -
  225.0 226.0 1.0 3.24 - -   3.3 0.095 -
  278.0 363.0 85.0 0.93 - -   278.8 0.027 -
includes 290.0 363.0 73.0 1.00 - -   239.4 0.029 -
includes 306.0 343.0 37.0 1.56 - -   121.4 0.046 -
  Hole ends in mineralization              
Camp Zone:                  
Hole From (m) To (m) Length (m) Gold (gpt) Silver (gpt) Tellurium (ppm)   Length (ft) Gold (opt) Silver (opt)
Previously reported:                  
SP10-001 12.5 34.0 21.5 1.31 - -   70.5 0.038 -
  50.0 58.0 8.0 1.90 - -   26.2 0.055 -
includes 54.0 58.0 4.0 3.44 - -   13.1 0.100 -
  89.0 91.0 2.0 1.74 - -   6.6 0.051 -
  118.0 127.0 9.0 1.84 - -   29.5 0.054 -
                     
SP10-003 70.0 71.0 1.0 1.29 - -   3.3 0.038 -
  77.0 78.0 1.0 1.20 - -   3.3 0.035 -
  109.0 110.0 1.0 1.82 - -   3.3 0.053 -
  130.0 131.0 1.0 2.09 - -   3.3 0.061 -
  143.0 147.0 4.0 1.00 - -   13.1 0.029 -
  217.0 219.0 2.0 3.56 - -   6.6 0.104 -
                     
SP10-004 31.0 72.0 41.0 1.08 - -   134.5 0.032 -
includes 31.0 49.0 18.0 1.40 - -   59.0 0.041 -
includes 36.0 38.0 2.0 2.21 - -   6.6 0.065 -
  83.0 87.0 4.0 3.02 - -   13.1 0.088 -
  94.0 95.0 1.0 1.04 - -   3.3 0.030 -
  101.0 103.0 2.0 1.08 - -   6.6 0.032 -
  107.0 109.0 2.0 1.61 - -   6.6 0.047 -
  116.0 121.0 5.0 1.05 - -   16.4 0.031 -
  140.0 143.0 3.0 1.22 - -   9.8 0.036 -
  147.0 148.0 1.0 1.20 - -   3.3 0.035 -
  152.0 154.0 2.0 1.08 - -   6.6 0.032 -
  159.0 160.0 1.0 1.36 - -   3.3 0.040 -
  216.0 217.0 1.0 1.06 - -   3.3 0.031 -
  247.0 248.0 1.0 1.03 - -   3.3 0.030 -

m equals meter, gpt equals grams per tonne, ppm equals parts per million, ft equals feet, opt equals oz per ton

(-) equals awaiting assays and analyses

Core was logged, then split using diamond saws, with one half sent for analyses and the other half stored for future reference. Quality control programs include the use of duplicates, standards and internal and external check assaying. Certified sample standards were submitted with the normal sample stream. Gold and silver assays and tellurium analyses were completed by SGS Canada Inc. in Red Lake and Toronto, Ontario using a 30 gram charge, fire assay, with an ICP finish. For over limit assay results, initial assays in excess of 10.0 gpt Au, a gravimetric finish is utilized. Multielement geochemical analyses including tellurium were performed by ICP-MS following a three acid digestion.

Quinton Hennigh, Ph.D., P.Geo., is the Qualified Person pursuant to National Instrument 43-101 responsible for, and has reviewed and approved, the technical information contained in this news release. Dr. Hennigh is acting as a technical advisor to Gold Canyon.

About Gold Canyon Resources Inc.:

Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties. The Company controls a 100% interest in the Springpole Gold - Horseshoe Island Gold, Platinum, Palladium Project and Favourable Lake Poly-metallic property currently under option to Shoreham Resources Inc. pursuant to an option and joint venture agreement entered into in December 2005 - all in the Red Lake Mining District of Ontario, Canada.

Through its wholly owned U.S. subsidiary, Gold Canyon Resources USA Inc., the Company controls a 100% interest in the Cordero Gallium Project situated in Humboldt County, Nevada, U.S.A.

Gold Canyon entered into a Joint Exploration Agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC) in January 2009.

Additional information can be found on the Company's website: www.goldcanyon.ca

Akiko Levinson, President & Director

Certain statements contained in this news release using the terms "may", "expects to", "project", "estimate", "plans", and other terms denoting future possibilities, are forward-looking statements in respect to various issues including upcoming events based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. The future conduct of the Company's business and the feasibility of its mineral exploration properties are dependent upon a number of factors and there can be no assurance that the Company will be able to conduct its operations as contemplated and the accuracy of these statements cannot be guaranteed as they are subject to a variety of risks that are beyond our ability to predict or control and which may cause actual results to differ materially from the projections or estimates contained herein. The risks include, but are not limited to, the risks described in the above press release; those risks set out in the company's disclosure documents and its annual, quarterly and current reports; the fact that exploration activities seldom result in the discovery of a commercially viable mineral resource and are also significant amounts of capital to undertake and the other risks associated with start-up mineral exploration operations with insufficient liquidity, and no historical profitability. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

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